South Asia: Imported ferrous scrap offers dip slightly in India and Pakistan; Enquiries improve

The South Asian ferrous scrap market exhibited a mixed trend today. In India, there was a slight improvement in inquiries but at lower prices, and buyers are still cautious about booking large volumes. In Pakistan, there were no significant activities reported, except for a few deals at reduced levels. Meanwhile, Bangladesh continues to face prolonged challenges in opening letters of credit.

Offers for shredded scrap decreased slightly in both India and Pakistan, while they remained unchanged in Bangladesh and Turkiye.

Market overview

India: Today, the imported ferrous scrap market in India improved slightly with active inquiries, however, buyers are still reluctant to procure large volumes.

Offers for shredded scrap from Europe were heard at $410-415/t CFR Nhava Sheva, while, HMS (80:20) were pointed at $395-400/t CFR.

A source based in southern India commented, "We have opted to observe the price trend over the next couple of days and, in the meantime, are concentrating on domestic procurement."

A trader-based source stated, "We haven't booked any material yet, and the price is currently low at around $410/t CFR levels."

In the domestic market, due to enhanced trading activity, scrap prices saw an increase of INR 200-500/t across major markets. For example, HMS (80:20) scrap in Mandi experienced a d-o-d rise of INR 500/t, reaching INR 38,300/t.

Pakistan: The imported ferrous scrap market in Pakistan remained notably weak, with buyers refraining from making any purchases due to concerns about potential further drops in offers. Consequently, sellers are under significant pressure in this market. As a result, a few transactions for shredded scrap have been completed today at reduced price levels.

Shredded scraps were offered at $412-415/t CFR Qasim from Europe, however, no deals were heard at this level.

Bangladesh: Imported ferrous scrap buyers in Bangladesh continue to encounter difficulties in opening letters of credit (LCs), which has resulted in a lack of significant import deals. Offers for shredded scrap from Europe have been assessed at $430-435/t CFR Chattogram. Meanwhile, Australian-origin HMS scrap has been offered at $420-422/t CFR.

PNS scraps from Hong Kong and the Netherlands have been reported at $445-450/t CFR Chattogram.

"There is demand; however, the primary challenge lies in unresolved issues related to pending LCs and the difficulties in opening new ones," a trader informed SteelMint.

The domestic market is presently experiencing a slowdown, leading to reduced production levels at major mills.

Turkiye: Turkish deep-sea imported ferrous scrap prices have experienced a notable decrease, primarily influenced by recent deals from the United States that were settled at lower price levels. This decline in scrap prices has given rise to a prevailing bearish sentiment in the market, with many industry participants expecting further drops in the near term.

One of the key factors contributing to this downward trend is the rising cost of importing raw materials for Turkish steel mills. Notably, there has been a significant 20% increase in natural gas and electricity prices for these mills. This increase in energy costs has had a cascading effect on the overall production expenses for steel manufacturers.

As a result, Turkish steel mills find themselves in a challenging position where the cost of scrap has become prohibitively expensive in the context of elevated energy expenses. This situation has created uncertainty in the market, prompting many to anticipate additional price declines in the foreseeable future.

Recent deals

• Approximately 750 t of UK-origin shredded scrap were booked at $412/t CFR Mundra
  
  
• Approximately 500 t of UK-origin shredded scraps were booked at $413/t CFR Mundra
  
  
• Around 1,000 t of Libya-origin shredded scrap were sealed at $415/t CFR Mundra
  
  
• Around 3,000 t of shredded scrap from Europe were booked at $415/t CFR Nhava Sheva
  
  
• Approximately 500 t of shredded scrap from Europe were booked at $407/t CFR Qasim
  
  
• Approximately 250 t of Brazil-origin HMS (80:20) were bought at $408/t CFR Mundra
  
  
• Around 250 t of Chile-origin HMS (80:20), scraps were bought at $412/t CFR Mundra
  
  
• Around 500 t of shredded scrap from Europe were secured at $416/t CFR Mundra
  
  
• Around 500 t of shredded scrap from Europe were secured at $415/t CFR Nhava Sheva
  
  
• About 1,000 t of shredded scrap were procured from Europe at $410-412/t CFR Qasim
  
  

Price assessments

India: UK-origin shredded scrap offers were down by $2/t to $410/t CFR Nhava Sheva, d-o-d

Pakistan: UK-origin shredded scrap offers were at $414/t CFR Qasim, down by $1/t d-o-d

Bangladesh: Offers for the UK-origin shredded scrap were stable at $430/t CFR Chattogram

Turkiye: US-origin HMS 1&2 (80:20) prices unchanged d-o-d at $370/t CFR Turkiye

Outlook

The demand for imported ferrous scrap in South Asian countries is exhibiting high volatility as buyers are carefully monitoring current price trends and are anticipating potential further drops in offers. Nevertheless, in India, where there has been a slight improvement in inquiries, it is expected that offers will maintain a relatively stable range.