South Asia: Imported ferrous scrap market volatile; India leads the booking race

The South Asian imported scrap market continues to remain volatile as most buyers are showing limited interest at current offers due to weak sentiments in the finished and semi-finished steel markets.

Indian buyers are cautiously making moderate-level of bookings and negotiating prices, partly influenced by the lack of major activities in neighbouring countries like Bangladesh and Pakistan. Although UK-origin shipments have been booked for Nhava Sheva on an LC basis, slow demand for finished steel is hindering active scrap bookings.

India

In India, some imported scrap deals are being done in limited quantities as players take advantage of the subdued buying activities in the other South Asian markets.

Indian buyers are bidding low, however, European and US sellers are reluctant to lower offers to India owing to active bulk buying from Turkish steel mills. Suppliers and yards in the UK are no longer willing to further reduce prices as the international market shows signs of improvement.

As per a trader source, "The international market is picking up, and suppliers/yards in the UK are no more interested in trimming prices further".

Pakistan

The imported scrap market in Pakistan is currently depressed, and some buying sources anticipate prices to go below $400/t soon. However, sellers may not lower prices further and could redirect their material to other destinations, defying expectations of a downward correction. A positive price revision may be seen in the following week depending on changes in weather that could boost demand and resume market activities.

"Domestic prices remain mostly unchanged due to minimal activities in the local market, with end-users showing little purchasing interest," a mill person informed.

Bangladesh

Bulk HMS (80:20) scrap from the US is offered at $390/t CFR to Bangladesh, while bids for busheling scrap are heard at $435-440/t. Far Eastern PNS scrap is offered at $425/t. The containerised scrap market in Bangladesh remains subdued as buyers, especially mills, shift their interest to bulk materials. Shredded containers from UK/Europe origins are priced at $424-426/t, and HMS(80:20) containerised scrap from Europe stands at $402-405/t CFR.

Turkiye

Turkish imported scrap prices also fluctuate, with recent deals from the US showing slight increases following which recyclers are hopeful for a potential upward trend. However, the steel market's sluggishness indicates slow scrap consumption.

Recent deals

1,000 t of UK-origin shredded has been sold at $415/t CFR Nhava Sheva on a 180 days LC basis.

Price assessment

• India: UK-origin shredded scrap offers stand at $406/t CFR Nhava Sheva, inching up d-o-d.
  
  
• Pakistan: UK-origin shredded scrap offers are at $410/t CFR Qasim, unchanged d-o-d.
  
  
• Bangladesh: Offers for UK-origin shredded scrap are at $425/t CFR Chattogram, stable compared to the last closing.
  
  
• Turkiye: US-origin HMS 1&2 (80:20) prices drop marginally to $350/t CFR Turkiye, inching up by $2/t d-o-d.
  
  

Outlook

Although domestic demand for scrap remains subdued, supply concerns due to heavy rains in the South Asian market, coupled with the holiday period in Europe, may prevent further price declines. Turkish buying activities could also influence major South Asian buyers to place restocking orders in the near term, especially after the monsoon season.