South Asia: Imported ferrous scrap market witnesses mixed trend

The South Asian ferrous scrap market displayed mixed trends today. In India, demand for imported scrap remained moderate with buyers adopting a cautious, need-based approach. In Pakistan, improved finished steel sales led to a slight uptick in scrap market activity, although participation was limited to urgent buyers. Meanwhile, Bangladeshi buyers focused on short transit scraps from neighboring regions due to high freight rates from the UK and Europe, further impacted by adverse weather conditions.

Shredded scrap offers inched up by $1/t in India and Bangladesh, while offers edged down by $1/t in Pakistan. US bulk HMS (80:20) offers remained unchanged d-o-d.

Overview

India: In India, the demand for imported scrap remained moderate as buyers adopted a need-based approach. Additionally, a bid-offer disparity persisted, driven by expectations of further declines in offers from suppliers. However, suppliers were unwilling to lower offers due to a strong local market, especially in Europe. Shredded scrap offers from the US and Europe were assessed at around $415-418/t CFR Nhava Sheva, while HMS (80:20) offers stood at $395-400/t CFR.

Pakistan: In Pakistan, there was a slight improvement in the imported scrap market due to better-finished steel sales. However, only a few buyers in urgent need of scraps were actively participating. Shredded scrap offers from the UK and Europe were assessed at $415-420/t CFR Qasim.

Additionally, a major steel mill recently decided to halt new orders. They stated, "Due to the high volume of new orders, we are closing our sales bookings. We will prioritize and complete the delivery of all pending orders. Therefore, no new orders will be taken during this time."

Bangladesh: Bangladeshi buyers showed little interest in procuring scrap from the UK and Europe due to higher freight rates, preferring instead to book short transit scraps from Singapore, Malaysia, Hong Kong, and Australia. Additionally, market activities have slowed down due to rains and adverse weather conditions. Indicative offers for shredded scrap from the UK and Europe were heard at $420-425/t CFR Chattogram, while HMS (80:20) offers were at $400-405/t CFR.

Offers for PNS scraps from Hong Kong were reported at $450/t CFR, while buyers' bids were heard at $445/t CFR, according to market sources.

Turkiye: Turkish imported ferrous scrap prices remained stable in recent deals concluded with European suppliers. A UK supplier sold HMS (80:20) at $373/t and shredded at $398/t CFR to an East Marmara mill. Another UK supplier sold bulk HMS (80:20), shredded, and bonus scrap at $375.5/t and $400.5/t CFR to a West Marmara mill CFR Turkiye. Market participants expect higher bookings next week due to positive sentiment.

Price assessments

India: UK-origin shredded scrap indicatives were assessed at $417/t CFR Nhava Sheva, edged up by $1/t d-o-d.

Pakistan: UK-origin shredded indicatives were assessed d-o-d at $417/t CFR Qasim, down by $1/t d-o-d.

Bangladesh: UK-origin shredded prices were inched up by $1/t to $420/t CFR Chattogram.

Turkiye: US-origin HMS (80:20) bulk prices were assessed stable at $378/t CFR Turkiye.