South Asia: Imported ferrous scrap offers down on lack of buying interest

The South Asian ferrous scrap market encountered a slow start today, being the first day of the week, with a persistent lack of demand prevailing across the market. In India, due to disparities between bid and offer prices, buyers opted to remain on the sidelines. In Pakistan, the weakened domestic finished steel sector had a negative impact on scrap consumption. Meanwhile, in Bangladesh, buyers faced challenges related to the opening of letters of credit (LC), which hindered their ability to procure imports.

Offers for shredded scrap saw a decline of approximately $1-5/t when compared to the closing prices from the previous Friday.

Market overview

India: Today, there was a noticeable sluggishness in the demand for imported scrap in India, primarily due to disparities between the bid and offer prices. While offers for shredded scrap from Europe remained in the range of $405-410/t CFR Nhava Sheva, buyers' bids were falling below these price levels.

HMS (80:20) scrap from Europe were heard at $395/t CFR Nhava Sheva.

A U.S.-based recycler mentioned that Indian mills are eyeing containerised shredded scraps at $400/t levels. Anything exceeding this threshold is not finding acceptance in the Indian market, SteelMint learned from market sources.

Pakistan: The demand for imported scrap in Pakistan remained subdued today because of weak finished steel demand in the domestic market. Offers for shredded scrap from Europe were heard in the range of $405-410/t CFR Qasim.

A steel mill has said, "The lack of demand for G-60 bars at the moment can be attributed to uncertainty in exchange rates. Buyers are delaying their procurement, which is leading to reduced scrap consumption overall."

Bangladesh: In Bangladesh, there is a demand for imported scrap. However, due to ongoing issues with the opening of letters of credit, buyers are currently unable to procure imported materials. Offers for containerised shredded scrap from the UK were heard at $418-422/t CFR Chattogram, while HMS (80:20) scrap were heard at $400-405/t CFR levels.

According to a trader, "Last week, a major steel mill booked a bulk cargo, but apart from that, the overall bulk market remained largely inactive. While there is demand, the primary issue lies in the opening of letters of credit."

Around 30,000 t of Australian bulk cargo was booked by a major Bangladeshi mill at $405-410/t CFR for HMS (80:20) scrap, SteelMint learned from market sources.

Turkiye: Turkish steel mills are set to require fewer than 20 deep-sea scrap cargoes for November shipments, potentially leading to increased cargo transactions in the next 10-12 business days. Market participants anticipate a price range stability of $5/t in the second half of October, although price fluctuations within that range remain uncertain.

Rising freight rates in the Mediterranean region, driven by ongoing conflicts, will further pressure Turkiye's ferrous scrap imports. Turkish domestic rebar prices have started the week with a decrease, as one Marmara mill reduced ex-works prices from $590/t to $570/t.

Recent deals

• Around 500 t of HMS (80:20) scrap from Brazil was booked at $395/t CFR Nhava Sheva.
  
  
• About 1,000 t of Australian HMS (80:20) scrap were procured at $370/t CFR Thailand.
  
  

Price assessments

India: UK-origin shredded scrap offers were at $406/t CFR Nhava Sheva, down by $2/t from the last closing on Friday.

Pakistan: UK-origin shredded scrap offers were down by $5/t to $405/t CFR Qasim today.

Bangladesh: Offers for UK-origin shredded scrap were stable at $422/t CFR Chattogram from the last closing.

Turkiye: US-origin HMS 1&2 (80:20) prices were down by $1/t to $360/t CFR Turkiye.

Outlook

The imported ferrous scrap market in South Asian countries is likely to remain under pressure due to limited buying inquiries and weak domestic market sentiments across markets. In Turkiye, the industry expects both steel and scrap prices to decline in the short term, with no signs of a market revival.