South Asia: Imported ferrous scrap market sluggish; some deals closed at low price

The South Asian imported scrap market has been slow due to reduced finished steel demand amid the monsoon. Production halts, particularly in Bangladesh and India, have also contributed to this sluggish pace.

In Pakistan, the market has been quiet following the Eid holidays, with limited activity from buyers since the recent reopening. However, some bulk deals have been reported in the Turkish scrap market, involving mixed prices for scrap of UK and US origins.

India

India is expected to witness major bookings before the monsoon, as inventories are depleting. However, the slow demand in the domestic steel market has dampened scrap import volumes.

An Indian trader said: "Bookings at $412-415/tonne levels are distress selling as, right now, actual prices are around $420/t CNF for India."

Another Indian seller informed: "Chennai Port is expecting the arrival of 3-4 bulk scrap vessels by the end of this month, which were booked at approximately $400-420/t."

Pakistan

Pakistan's imported scrap market has remained inactive due to the Eid holidays, with major mills closed for celebrations. Although the market has resumed, buyers' participation is negligible or limited.

In a recent transaction, 500 tonnes (t) of UK-origin shredded scrap was booked at $415/t.

Bangladesh

The Bangladeshi ferrous scrap market is yet to resume, as participants are not active. Indicative prices of UK-origin shredded scrap were between $440-445/t, while HMS (80:20) indicatives were in the range of $410-420/t CFR Chattogram.

Turkiye

The Turkish market has seen some deals from the US and Europe at mixed price ranges following the Eid holidays. Customers are taking their time to evaluate their next steps, given the lack of support from finished steel. Mills in Turkiye are focusing on developments in the longs segment and may delay replenishing stocks with foreign scrap.

Recent deals:

Around 500 t of shredded scrap were booked at $415/t on CFR Qasim.

Approximately 1,000 t of shredded scrap were booked at $412/t CFR Chennai.

A US bulk vessel with HMS (85:15), shredded, and bonus was booked at $381/t and $399/t(each) CFR Turkiye.

A European vessel with 20,000 t of HMS (80:20) was booked at $360/t for prompt shipment, CFR Turkiye.

Price assessments:

• India: UK-origin shredded scrap offers stand at $415/t CFR Nhava Sheva, unchanged from the last offer.
  
  

• Pakistan: UK-origin shredded scrap offers stand at $418/t CFR Qasim, down by $2/t from the previous offer.
  
  

• Bangladesh: Offers for UK-origin shredded scrap remain at $445/t CFR Chattogram, unchanged.
  
  

• Turkiye: US-origin HMS 1&2 (80:20) prices stand at $380/t CFR Turkiye, same as the previous offers.
  
  

Outlook

Slow demand in the domestic steel market and the monsoon season will likely contribute to a subdued import volume. However, there might be some positive momentum with major bookings anticipated in India and Turkiye for restocking inventories. It remains crucial for market participants to closely monitor the developments in the longs segment.