South Asia: Imported ferrous scrap market sluggish on Labour Day

The South Asian ferrous scrap market was partially closed today due to May Day (Labour Day). Major participants like India and Bangladesh continued to be slow on account of lesser number of enquiries and mostly indicative prices were floated in the market. On top of that, following the global scrap price trend, Pakistani scrap prices are also going downwards.

India

For India, shredded offers from Europe slipped to $435-440/tonne (t) range as buyers are expecting these to fall by another $10-15/t in the next few days due to dull finished steel sales in the domestic market. They were putting bids of around $430/t for shredded while bids for HMS (80:20) of Europe-origin remained below $425/t CFR Nhava Sheva. West African HMS (80:20) indicatives were heard below $420/t.

"Prices might fall by $10-15/t, as the market is dull right now with no clear vision. We are expecting shredded from Europe at around $430/t and HMS (80:20) at $420/t," an Indian trader informed SteelMint.

Pakistan

Prices were down compared to the last closing, at $445/t CNF Qasim. The reason was Turkiye which witnessed a downtrend in terms of prices and deals. A sluggish Vietnam market also added to the negative sentiments.

"Pakistan ferrous market insiders said scrap prices may even touch $430/t levels. Things will become clear this week. Some experts suggested that India can be the deciding factor in terms of prices if it gives support to the market," an official from a major Pakistani mill shared.

Bangladesh

The Bangladeshi market remained closed for the day due to Labour Day.

Indicatives for UK-origin shredded and European-origin HMS (80:20) inched down on dull demand. The same happened with HMS (80:20) of UK-origin CNF Chattogram for the day.

Turkiye

According to market participants, after the elections in this country, the situation in terms of steel sales and scrap purchases is not likely to change because of certain ongoing challenges. In particular, the lack of foreign currency. In fact, some plants are already reducing capacity utilisation and the need for scrap. In the short term, demand for scrap and steel sales is not expected to improve, at least until May 14, due to the elections.

SteelMint's assessment of HMS(80:20) bulk of US origin remained at $400/t, down by $3/t d-o-d.

Price assessments

• Europe-origin shredded scrap offers into India stood at $440/t CFR Nhava Sheva, down by $5/t d-o-d
  
  
• UK-origin shredded scrap prices into Bangladesh stood at $460/t CFR Chattogram, slightly down by $3/t d-o-d.
  
  
• UK-origin shredded scrap prices in Pakistan stood at $448/t CFR Qasim, down by $5/t from yesterday.