South Asia: Imported ferrous scrap markets face slowdown amid monsoons

The South Asian ferrous scrap market experienced varying degrees of demand and pricing challenges, driven by seasonal factors and global market shifts.

In India and Pakistan, subdued steel demand during the monsoon and price disparities have led to slow market activity, with minimal buyer interest and cautious trading.

Bangladesh faced similar challenges, which were compounded by financing issues and adverse weather.

Meanwhile, in Turkiye, the scrap market remained mixed, with steady prices but growing concerns over the impact of falling iron ore prices, leading to a cautious outlook despite potential for higher future deals.

Overview

India: Indian buyers have shown minimal interest in purchasing imported scrap due to the bid-offer disparity and subdued steel demand during the monsoon season. Indicative offers for shredded scrap from the US and UK/Europe were assessed at $385-390/t CFR Nhava Sheva, but buyers were seeking prices $5-10/t lower. Similarly, HMS (80:20) offers from the UK/Europe and West Africa ranged between $365-375/t CFR, with buyers requesting prices around $355-360/t CFR.

Market participants noted, "The market is quite depressing, with minimal buyer activity and a frustrating $5-10/t gap between bids and offers. Sales are happening, but at a very slow pace, further strained by poor finished steel demand.

Pakistan: Pakistan's demand for imported scrap has slowed due to a downturn in the steel market, particularly amid the rainy season. According to market feedback, steel mills are offering discounts on grade 60 rebars to boost sales.

Indicative offers for shredded scrap from the UK/Europe were assessed at $395-400/t CFR Qasim.

Notably, around 1,000 t of shredded scraps were booked from the UK/Europe at around $398/t CFR Qasim today.

In the domestic market, local scrap prices ranged between PKR 144,000-148,000/t, rebars were priced at PKR 242,000-248,000/t, and billets were at PKR 206,000-210,000/t.

Bangladesh: Bangladesh's buyers remained quiet today due to financing challenges and adverse weather conditions. Indicative offers for shredded scrap from the UK/Europe were assessed at $400-405/t CFR Chattogram, while HMS (80:20) was quoted at $390-395/t CFR.

Turkiye: The Turkish imported scrap market saw mixed sentiment. Prices for deep-sea ferrous scrap remained unchanged, with US bulk HMS (80:20) assessed at $364/t CFR, but a sharp decline in iron ore prices dampened the positive momentum from earlier. Tradable values for US-origin scrap ranged between $362-365/t CFR, with some traders expecting higher prices in upcoming deals. European cargoes were firm at $365/t CFR, and US recyclers are likely to target $368-372/t CFR this week.

The drop in iron ore prices to $96/dt CFR North China raised concerns about its impact on the scrap market, leading to a cautious outlook.

A market insider noted that- Turkish buyers are still interested in booking, and with limited US scrap stocks, offers may soon reach $365/t. If market fundamentals remain supportive, prices could touch $370/t, and Turkish steelmakers may buy at these levels willingly.

Price assessments

• India: UK-origin shredded scrap indicatives remains stable at $390/t CFR Nhava Sheva from previous day.
  
  
• Pakistan: UK-origin shredded indicatives remains stable at $400/t CFR Qasim from previous day.
  
  
• Bangladesh: UK-origin shredded prices were remains stable at $400/t CFR Chattogram from previous day.
  
  
• Turkiye: US-origin HMS (80:20) bulk prices were remains stable at $364/t CFR Turkiye from previous day.