South Asia: Imported ferrous scrap markets witnesses mixed trends
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- Rebar demand supports Turkish imported scrap
- India remains subdued amid high inventories
The South Asian imported ferrous scrap markets were quiet today. In India, mills showed limited interest due to weaker demand in steel. Offers above $380/tonne (t) for shredded scrap and $360/t for HMS were not accepted. Pakistan's imported market remained subdued, with fewer offers and high inquiries ahead of the December 2024 supply closure. Bangladesh saw limited buyer interest, with indicative for HMS at $355/t and shredded scrap at $380/t. In Turkiye, the market strengthened with rising rebar demand, though sellers remained cautious amid a potential rise in price.
India: The imported scrap market stayed quiet, with limited buyer interest due to high inventory levels and weak demand. Major mills across the country reported having enough stock.
As per a Chennai-based importer, buyers are bidding for Australian HMS (80:20) at $355/t, while sellers remain firm on $360-365/t CFR Chennai. Indian buyers are primarily focused on nearshore shipments, as other Asian buyers are enquiring more from European exporters for restocking before winter closure.
Offers for shredded scrap from the US and UK/Europe were reported at $385-390/t CFR Nhava Sheva, with buyers countering at $380/t. HMS offers ranged from $360-370/t CFR, but buyer interest remained subdued.
As per a western region mill, offers above $380/t for shredded scrap and $360/t for HMS were not accepted, as the increase in prices was driven by re-stocking before anticipated supply-side closures.
Pakistan: The Pakistani imported scrap market remained subdued today, with fewer confirmed offers last week. However, things are expected to become clearer today. The supply market will close until the first week of January 2025, so inquiries are likely to remain high.
The State Bank of Pakistan (SBP) reduced its key policy rate by 200 basis points to 13% from 15%, effective 17 December 2024. The decision was influenced by a drop in food inflation and the gradual phase-out of gas tariff hikes. Despite volatile inflation, economic activity has improved. The rate cut met mixed expectations, with businesses calling for a larger reduction and analysts forecasting a smaller one.
As per market insiders, the policy rate cut is expected to help the economy in early 2025.
Bangladesh: The imported scrap market in Bangladesh remained silent. There is a bid-offer gap in the Asian market, especially from Bangladesh, where buyers are not interested in more than $355/t for HMS and $380/t for shredded scrap. Most mills in Dhaka are currently operating at minimal capacity utilisation in the challenging market environment.
Turkiye: The Turkish imported scrap market strengthened with continuous trades happening from Europe. Early last week, scrap recyclers held back offers, but rising prices drew sellers back. Offers for UK-origin HMS (80:20) were at $342/t CFR and US-origin at $350/t CFR.
However, sellers remained cautious, with some stating, "Sellers are holding off and waiting for higher prices."
Recently a couple of deals were confirmed, including two mills in the East Marmara region that secured EU-origin bulk scrap cargos at $340-342/t for HMS (80:20).
Price assessments
India: UK-origin shredded indicatives edged up by $1/t to $381/t CFR Nhava Sheva compared to the last close on Friday.
Pakistan: UK-origin shredded indicatives edged down by $2/t to $386/t CFR Qasim compared to Friday.
Bangladesh: UK-origin shredded was assessed at $387/t CFR Chattogram, down by $3/t compared to the last close on Friday.
Turkiye: US-origin HMS (80:20) bulk was assessed at $348/t CFR Turkiye, up by $1/t compared to Friday.