South Asia: Imported ferrous scrap offers drop by up to $3/t d-o-d

Today, South Asian ferrous scrap prices experienced a decline of up to $2-3/t in India, Pakistan, and Bangladesh. Indian buyers refrained from active participation and displayed minimal interest in purchasing scrap from the seaborne market, preferring better alternatives available domestically. Pakistani buyers exhibited relatively better interest, albeit at a slow pace. Bangladeshi buyers continued to inquire and have recently shown active interest in bulk deals over containers.

Overview

Indian buyers continued to exhibit reluctance in purchasing imported scrap from the seaborne market, primarily due to the availability of cost-effective material in the domestic market and the expectation of further price declines. Shredded scrap indicators from the US and Europe were assessed at $395-405/t CFR, while offers for HMS (80:20) were observed in the range of $370-380/t CFR.

Offers for HMS 1 from Latin America and Kuwait were reported to be around $395-400/t CFR.

According to a trader, "Indian buyers are still hesitant due to the cheaper options available in the domestic market." Another trader noted, "The market is presently slow, with individuals also opting for sponge due to its cost-effectiveness."

In Pakistan and Bangladesh, market activities fared relatively better compared to India. Pakistani buyers secured imported scrap on an as-needed basis, whereas Bangladeshi buyers showed a preference for bulk purchases over containers, with a few bulk deals being concluded recently.

Shredded scrap from UK/Europe offers were reported at $400-405/t CFR Qasim, with fabrication offers from the UAE around $405/t CFR. HMS (80:20) offers were heard at $390/t CFR.

Meanwhile, shredded scrap offers from the UK/Europe into Bangladesh were reported at $405-410/t CFR, while HMS (80:20) were at $400/t CFR.

Turkish imported ferrous scrap prices experienced a slight uptick after a recent transaction. However, market sentiment diminished as Chinese iron ore prices fell. Consequently, market participants have become cautious and are reconsidering their booking decisions.

Price assessment

India: UK-origin shredded scrap indicatives were assessed at $403/t CFR Nhava Sheva, down by $2/t d-o-d.

Pakistan: UK-origin shredded scrap indicatives were assessed at $404/t CFR Qasim, down by $3/t d-o-d.

Bangladesh: UK-origin shredded scrap prices were assessed at $408/t CFR Chattogram, down by $2/t d-o-d.

Turkiye: US-origin HMS (80:20) bulk prices were assessed at $378/t CFR Turkiye, up by $3/t.

Outlook

Imported ferrous scrap offers are expected to exhibit volatility. Indian buyers might persist in their reluctance to book imported scrap due to price discrepancies and the availability of cheaper options domestically. Furthermore, with Holi around the corner, market participants may lean towards a holiday mood in the latter half of March. Pakistani buyers are anticipated to remain active; however, the pace of activity is likely to be slow due to Ramadan.

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