South Asia: Imported ferrous scrap market sees mixed trends, sellers maintain firm stance

The South Asian ferrous scrap market experienced a mixed trend. In India, buyers remained cautious due to unclear pricing and distress sales. In Pakistan, mixed sentiments prevailed as steel mills faced challenges such as longer lead times for imports from the UK/Europe and UAE's export duties. Bangladesh witnessed a relatively slow market with ongoing negotiations for a few deals. Notably, offers across the region remained largely range-bound with minimal adjustments, reflecting a firm seller stance amidst higher collection costs.

Shredded scrap offers in India remained unchanged d-o-d, while they decreased by $2/t in both Pakistan. However, there was a $1/t increase in Bangladesh. Furthermore, US bulk HMS (80:20) offers to Turkiye witnessed a slight decline of $1/t CFR d-o-d.

Market overview

India: In India, market activities remained slow amidst disparity in bids and offers and due to distress selling resulting in lack of buyers' confidence in booking fresh scraps from the seaborne market. Offers for shredded scrap from Europe were assessed at $415-420/t CFR Nhava Sheva, while bids are hovering at $400-405/t CFR levels.

HMS (80:20) were being offered at around $390/t CFR while bids fell below around $385/t CFR levels.

A steel mill representative informed, "Market is quite slow, shredded scrap offers are unviable and material influx from Europe or UK is not feasible in India at the moment."

Pakistan: In Pakistan, market sentiments remained mixed due to recent elections and subsequent payment delays, compounded by longer lead times in material arrival from Europe/UK and UAE's recent export duty announcement. These challenges have led Pakistani buyers to face limited availability of scraps, resulting in slower purchasing activity.

Shredded scrap offers from Europe were assessed at $435-445/t CFR Qasim, while offers from the UAE were reported at $450/t CFR, with ongoing negotiations for a few deals. Market sources also disclosed that shredded scrap offers from Norway were being sold at $435-440/t CFR levels.

A representative from a trading company commented, "Mills in Pakistan are facing material shortages due to delays in imports from the UK and EU. Some companies are experiencing delays in LCs, contributing to the overall mixed situation. Additionally, UAE shipments are also impacted by duties."

Bangladesh: In Bangladesh, market activities were relatively slow, with a few deals reportedly in the negotiation process and noticeable discrepancies in bids and offers.

Shredded scrap offers from Europe were observed at $435-440/t CFR Chattogram, while those from the US were noted at $435-438/t CFR, and offers from Australia were assessed at $430-432/t CFR.

HMS (80:20) offers from the US were heard at $405-410/t CFR, and HMS/PNS mix from the Middle East was priced at $420-425/t CFR.

HMS (90:10) scraps in 20 feet containers from Canada were offered at $420/t CFR, although bids were around $408/t CFR levels.

In the domestic market, rebars were priced at BDT 90,000-95,000/t ($820-866/t) ex-Chattogram, while BDT 85,000-87,000/t ($775-793/t) ex-Dhaka. Billets were noted at BDT 76,000-77,000/t ($693-702/t) ex-Dhaka.

Turkiye: Turkish deep sea imported ferrous scrap prices remained stable, with sellers holding back offers while Turkish mills exerted pressure on prices. Offers for bulk HMS (80:20) were assessed at $418/t CFR, while tradable values for US/Baltic-origin HMS (80:20) ranged between $415-$420/t CFR. Despite Turkish mills' limited presence in the deep-sea imported scrap market, Baltic recyclers reported firm sell-side sentiment, buoyed by local European demand. However, Baltic recyclers noted that their indicative offer of $420/t CFR for HMS (80:20) was deemed unworkable for Turkish mills. Uncertainty over recent changes to VAT regulations in Turkiye contributed to sluggish domestic rebar sales and pressured the scrap market.

Turkish exported rebar held steady at $610/t FOB, with limited market activity reported. Shortsea scrap imports to Turkiye were assessed at $400/t CFR, down $3/t as compared to last price.

Despite the temporary downturn, market participants expressed optimism for a resolution to the VAT situation and anticipated stabilisation in the scrap market. Collection costs in Romania were cited as a factor supporting shortsea scrap prices, with indicative bids for Romania-origin shortsea scrap falling below $400/t CFR as Turkish mills sought to influence sellers in the region.

Recent deals

• Around 250 t of turning boring scraps were booked from the US at $345/t CFR Nhava Sheva.
  
  
• About 250 t of HMS (80:20) scraps were procured from Mauritius at $370/t CFR Nhava Sheva.
  
  
• Approximately 500 t of shredded scraps were booked from Europe at $439/t CFR Qasim.
  
  

Price assessments

India: UK-origin shredded scrap indicatives were assessed at $416/t CFR Nhava Sheva, stable d-o-d.

Pakistan: UK-origin shredded scrap indicatives were assessed at $440/t CFR Qasim, down by $2/t d-o-d.

Bangladesh: UK-origin shredded scrap prices were assessed at $434/t CFR Chattogram, up by $1/t d-o-d.

Turkiye: US-origin HMS (80:20) bulk prices were assessed at $418/t CFR Turkiye, down by $1/t d-o-d.

Outlook

In the near term, offers for imported ferrous scrap are likely to remain range-bound with minor fluctuations. This is primarily due to sellers maintaining a firm stance on higher collection costs, even amid sluggish sentiments in major importing markets.