South Asia: Imported ferrous scrap market sees moderate trade

The South Asian ferrous scrap market witnessed moderate trade activities as few containerised deals were heard in Bangladesh and Pakistan. Higher offers were also floated in India and Pakistan, ranging from $435-445/t. The Turkish market has also seen a hike in recent Europe deals that helped create some momentum in the scrap supply side, especially in the US and Europe.

Market Overview

India: Shredded offers in containers were heard at $435-440/t levels. Yet, buyers are holding at $410-415/t, which created a big gap in bids and offers.
Scrap price movements might witness a downward trend in the next couple of days as two major Chinese real estate developers have defaulted on payments over the last week.

Offers for bulk shredded are assessed at $415-420/t, while container offers have risen significantly over the last couple of days.

A trader said the reason behind this is increased demand in India but other Asian countries are unable to close deals due to the high offers.

Pakistan: The imported ferrous scrap market in Pakistan was dull but a few containerised bookings were done yesterday at $430-440/t levels. The price idea in the next couple of days will touch $445-450/t, informed some market participants.

Rebar offers from major mills have increased to PKR 270,000-272,000/t, yet demand is subdued.

Bangladesh: The imported market in Bangladesh remained moderate as offers heard were slightly up by $4-8/t CFR Chattogram. Meanwhile, buyers captured deals from Hong Kong, Australia, NewZealand, the Philippines, and Brazil which showed their less interest in US- or UK-origin materials at the moment. Meanwhile, some bulk deals are expected due to the ongoing negotiations as per sources.

Turkiye: Turkish mills reserved approximately 25,000 t of imported northern Europe scrap, but at a slightly higher price. These include 20,000 t of HMS (80:20) at $364.50/t CFR and 5,000 t of bonus at $384.50/t CFR for mid-Sep-mid-Oct'23 delivery. Another HMS (80:20) deal was heard at around $368.50/t CFR, but the volume could not be verified. Earlier, 23,000 t of US-origin material had been booked at $367/t CFR.

Recent deals

• Approximately 500 t of Europe-origin shredded was sold at $430/t CFR Qasim.
  
  
• Around 500 t of Hong Kong-origin PNS was booked at $455/t CFR Chattogram.
  
  
• About 500 t of UK-origin Busheling mix scrap was sold at $448/t CFR Mundra.
  
  

Price assessments

• India: UK-origin shredded scrap offers were at $430/t CFR Nhava Sheva, inching up $4/t.
  
  
• Pakistan: UK-origin shredded scrap offers were at $438/t CFR Qasim, up by $8/t d-o-d.
  
  
• Bangladesh: Offers for UK-origin shredded scrap were at $442/t CFR Chattogram, up by $7/t from the last offers.
  
  
• Turkiye: US-origin HMS 1&2 (80:20) prices increased by $4/t, to $368/t CFR Turkiye.
  
  

Outlook: Offers in the Indian market are expected to remain stable. However, in Pakistan and Bangladesh, the scrap market might see a rise in offers due to fluctuating currencies and LC issues. Sellers are thus opting for the Indian market.