South Asia: Imported ferrous scrap markets witness downward trend in prices

The South Asian scrap markets displayed a cautious trend today, with India, Pakistan, and Bangladesh showing subdued demand. In India, bid-offer mismatches and a downward trend in domestic scrap dampened buying interest, while Pakistani sellers faced sluggish steel sales, liquidating stocks at lower prices to boost cash flow. Meanwhile, Bangladeshi buyers held back as ample inventories and slow steel sales were compounded by flooding across the country. In Turkiye, imported scrap prices softened slightly as mills turned to more affordable European options, leaving US suppliers hesitant to lower prices further.

Overview

India: In India, imported scrap demand remained low today due to bid-offer disparities and reduced buyer confidence, influenced by a downward trend in the domestic scrap market. The slowdown in Turkiye, the largest scrap importer, further contributed to a cautious atmosphere. Indicative offers for shredded scrap from the US and UK/Europe were at $390-395/t CFR Nhava Sheva, with HMS (80:20) quoted at $380-385/t CFR.

One trader remarked, "Finished prices were stable during the holidays, and price movements may stay slow in the coming days." A trader based in South India added, "The market is slightly cautious at the ground level due to the approaching cyclone in Chennai."

Pakistan: Pakistan's imported scrap market stayed muted amid weak steel demand and sluggish sales, with sellers liquidating stocks at lower prices to secure cash. Shredded scrap offers from the UK/Europe were around $400-405/t CFR Qasim.

Domestically, local scrap was priced between PKR 135,000-140,000/t, billets were at PKR 200,000-205,000/t, and rebar prices ranged from PKR 245,000-248,000/t.

A steel mill official noted, "Local scrap is cheaper compared to imported, imported scrap costs PKR 10,000-12,000 more. The main issue is steel demand, which has dried up; buyers aren't interested, and sellers are willing to accept any price to meet obligations."

Bangladesh: Bangladeshi buyers stayed quiet as they held sufficient inventory and faced sluggish steel sales in the domestic market, further impacted by ongoing floods and rains across various regions. Indicative offers for shredded scrap from the UK/Europe were around $400-405/t CFR Chattogram, with HMS (80:20) priced at $390-395/t CFR.

Turkiye: Turkish imported scrap prices eased slightly as buyers shifted to cheaper European scrap and held off from premium cargoes. Offers for US-origin HMS (80:20) at $380/t CFR, a $3/t decrease from the previous day.

A recent trade from Benelux to an Iskenderun mill involved 24,000 t of HMS (80:20) and 16,000 t of shredded and bonus material, averaging $381/t CFR.

Increased European supply has provided Turkish mills with more options, reducing the need for higher-priced Baltic and US material, and prompting US scrap suppliers to retreat, unwilling to drop below $380/t CFR given recent deal normalizations.

Price assessments

India: UK-origin shredded scrap indicatives edged down by $2/t at $398/t CFR Nhava Sheva compared to previous day.

Pakistan: UK-origin shredded indicatives edged down by $3/t to $405/t CFR Qasim compared to previous day.

Bangladesh: UK-origin shredded prices were edged down by $2/t at $402/t CFR Chattogram compared to previous day.

Turkiye: US-origin HMS (80:20) bulk prices edged down by $3/t at $380/t CFR Turkiye compared previous day.