South Asia: Imported ferrous scrap market subdued amid cautious buying
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- China's stimulus fails to lift scrap prices in Turkiye.
- No scrap purchases in India due to TMT inventory.
South Asia's ferrous scrap market was subdued today, with cautious buyer sentiment across key markets. In India, offers for shredded scrap were steady but buyers sought lower prices. Pakistan's market saw limited deals due to a bid-offer disparity. Bangladesh's market remained positive, supported by higher rebar prices and increasing interest in bulk scrap once LC constraints ease. In Turkiye, the market held steady, but China's stimulus package failed to boost prices.
Overview
India: India's imported scrap market was steady today, with buyers cautious amid uncertain price trends. UK/EU-origin shredded scrap offers remained firm at $400-405/t CFR, but buyers found $393-395/t CFR more reasonable. HMS (80:20) from the UK/Europe and West Africa was assessed at $375-380/t CFR, while buyers considered $370-375/t CFR workable.
A steel mill official stated, "We prefer local scrap but will consider imports if domestic prices are INR 2,000 higher." Another mill representative added, "We're not buying imported scrap due to ample TMT inventory and plan a one-month shutdown starting late November."
A UK yard owner reported that shredded scrap in UK yards is priced around 250-255 pound/t ex-works ($323-329/t) and factoring in freight rates of $53-56/t from the UK to Nhava Sheva/Mundra, the total price comes to $376-380/t.
Pakistan: Pakistan's Imported ferrous scrap market was quiet today due to a bid-offer disparity, with buyers unwilling to pay higher prices. Buyers are seeking prices around $390-395/t, while offers are at $395-400/t, leading to a lack of interest. As a result, only a few deals were concluded.
A major Steel mill participant noted that "The market is expected to open late tonight as smog disrupting transportation in Punjab. Offers are above $400/t, while bids are around $390-392/t."
As per a UK-based trading house source, "A total of 1,000 t of UK-origin shredded scrap was sold at $395/t, while UAE-origin shredded scrap continues to be priced higher than UK material."
Bangladesh: Bangladesh's imported scrap market remained positive in terms of offers, although subdued activity persisted with continued lower-level bids.
Offers for shredded scrap from Australia are at $402-405/t, while HMS is quoted at $390/t. PNS scrap from Hong Kong is priced above $425/t, and busheling from Malaysia at over $430/t.
A Chattogram-based trader informed BigMint, "Buyers are actively evaluating US bulk scrap offers, and regional bulk scrap consumer mills may participate in the upcoming Kanto tender." "Demand for bulk scrap is expected to rise once LC constraints from banks ease," he added.
There was a slight improvement in rebar prices in Dhaka, which are currently at BDT 82,000 BDT/t exw.
Turkiye: Turkish imported ferrous scrap prices remain slightly upward following a recent deal at around $362-363/t levels.
Market indicating a short-term stability. Despite anticipation, China's new stimulus package fell short of sparking price momentum, focusing instead on debt relief without measures to boost steel demand directly.
The Turkish market's reaction was subdued, missing the rally seen in September when China's economic interventions fueled a price surge.
In recent deals, US-origin bulk cargo comprising HMS (80:20) scrap sold at $362/t CFR to the West Marmara region mill, and an EU-origin bulk cargo comprising HMS (80:20) scrap sold at $363/t to a Mediterranean region mill.
Price assessments
India: UK-origin shredded scrap indicatives edged up by $2/t at $399/t CFR Nhava Sheva compared to the last closing day on Friday.
Pakistan: UK-origin shredded indicatives edged up by $2/t at $398/t CFR Qasim compared to the last closing day.
Bangladesh: UK-origin shredded prices were at $402/t CFR Chattogram, up $1/t compared to the last closing day on Friday.
Turkiye: US-origin HMS (80:20) bulk prices edged up by $1/t at $363/t CFR Turkiye compared to the last closing day.
