South Asia: Imported ferrous scrap market slow due to lack of demand amid Eid
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Today, the South Asian ferrous scrap market continued to exhibit sluggishness. Indian buyers proceeded cautiously, unsettled by the volatility in the domestic market, which undermined their confidence. Meanwhile, Pakistani and Bangladeshi markets saw minimal activity, with Ramadan coming to an end and Eid and related holidays approaching, leading the majority of buyers to adopt a holiday mood.
Shredded scrap offers remained steady in India while experiencing a slight increase of $1/t in Pakistan and $2/t in Bangladesh. US bulk HMS (80:20) offers also remained unchanged d-o-d.
Overview
Today, India's demand for imported scrap remained moderate amid buyer uncertainty amidst domestic market volatility. Shredded scrap offers from Europe ranged between $420-425/t CFR, while HMS (80:20) offers stood at $385-395/t CFR from West Africa and Europe.
NTP offers from Australia and the UK hovered around $430/t CFR Chennai. Offers for HMS (90:10) from the UK and Australia were at $408-412/t CFR, and shredded scrap indicatives from Australia were at $425/t CFR.
Market participants noted no major bulk arrivals at Chennai port, with small container bookings heard from the US, UK, and South America. Bulk HMS offers were at $395-400/t CFR for West Coast India, while bulk shredded scrap ranged from $425-430/t. Anticipating a potential drop in bulk prices if Turkiye remained stagnant, South Asian buyers like Bangladesh and Vietnam may opt for small to medium-sized bulk shipments.
As per a recent report, around 15,000 t of CRC scraps were booked by the primary mill at around $437/t CFR Vizag from various origins, like the UK and Malaysia.
Contrastingly, the Pakistani and Bangladeshi markets remained quiet today as both countries observed the Eid holidays, with a majority of buyers in holiday mode. Shredded scrap offers from Europe were assessed at $425-430/t CFR Qasim.
In Bangladesh, indicative offers for shredded scrap were heard at around $420-425/t CFR Chattogram, while HMS (80:20) were at $400-405/t CFR.
Turkish imported ferrous scrap prices remained unchanged as mills took a step back from the market ahead of the Eid al-Fitr holiday. Turkish imports of premium heavy melting scrap HMS (80:20) at $384/t CFR, with limited market activity reported. Indicative tradable values for US-origin premium HMS (80:20) hovered around $384/t CFR. Recyclers in the EU expressed pressure on purchase prices, aiming for parity with US prices to achieve satisfactory margins. HMS collection prices stood at Euro 315/t delivered to docks, with competition in the Benelux region driving prices up. Despite this, the buyers' side remained quiet due to the upcoming holiday in Turkiye, leading mills to adopt a "wait-and-watch" approach and monitor the Chinese iron ore market for direction.
Price assessments
India: UK-origin shredded scrap indicatives were assessed unchanged at $420/t CFR Nhava Sheva, d-o-d.
Pakistan: UK-origin shredded scrap indicatives were assessed stable at $426/t CFR Qasim, up by $1/t d-o-d.
Bangladesh: UK-origin shredded scrap prices were assessed at $422/t CFR Chattogram, up by $2/t d-o-d.
Turkiye: US-origin HMS (80:20) bulk prices were assessed stable at $384/t CFR Turkiye, d-o-d.
Outlook
In the near term, imported scrap offers are expected to experience sustained pressure, mainly because a large portion of buyers from Pakistan and Bangladesh will be absent due to Eid observance. Similarly, Turkish buyers are also anticipated to remain quiet during the Eid holidays from 10-12 April.
