South Asia: Imported ferrous scrap offers drop by up to $4/t amid dull buying interest
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The lacklustre trend sustained in the South Asian ferrous scrap market due to subdued buying interest across the board. In India, buyers avoided fresh scrap bookings from the seaborne market, because domestically procured material is cheaper. Pakistani buyers continued their cautious approach, booking as per need, while Bangladeshi buyers slowed purchases, anticipating slight corrections in offers in the near term.
Notably, shredded scrap offers declined by $4/tonne (t) in India, and by $2/t each in Pakistan and Bangladesh. Meanwhile, bulk HMS (80:20) offers from the US to Turkiye remained unchanged d-o-d.
Market overview
India: Due to the current lack of viability in existing offers, Indian buyers have abstained from making new bookings for scrap from the seaborne market. There is a noticeable shift towards other metallic alternatives such as sponge and domestic scrap, driven by the considerable price gap between domestic and imported scrap.
Indicative offers for shredded scrap from Europe were assessed at $415-420/t CFR Nhava Sheva, while HMS (80:20) were assessed at $385-390/t CFR.
A trader commented, "Imports have become economically impractical in India, leading buyers to favour local sources or alternatives like sponge. The few transactions happening involve arrival cargoes, with the maximum price for HMS capped at $385/t. Fresh bookings in the market are currently scarce due to these prevailing circumstances."
Pakistan: In Pakistan, buyers are opting for imported scrap on an "as-needed" basis, primarily due to a slowdown in the domestic finished steel market following the elections. Indicative offers for shredded scrap from Europe were evaluated at $440-445/t CFR Qasim.
In the domestic market, prices for local scrap were reported at PKR 160,000-167,000/t ($573-598/t) ex, while rebars and billets were evaluated at PKR 260,000-264,000/t ($931-945/t) ex and PKR 220,000-225,000/t ($787-805/t) ex, respectively.
Bangladesh: In Bangladesh, imported scrap buying activities remained moderate today, with shredded offers from Australia at $430-435/t CFR Chattogram and $410-415/t CFR for HMS (80:20). Australian shredded indicatives were heard at $430-432/t whereas fresh offers for HMS (80:20) heard at $416-420/t on CFR Chattogram basis.
Turkiye: Turkish deep-sea imported ferrous scrap prices remained unchanged, with sellers showing resilience against pressure from Turkish mills and subdued demand. Bulk HMS (80:20) offers from the US stood at $416/t CFR today, unchanged from the day before. Tradable values for premium or US/Baltic-origin HMS (80:20) typically ranged between $415-417/t CFR, with sellers maintaining firm positions. Collection costs in the Benelux region were noted at Euro 345-350/t delivered to docks, reflecting prevailing market sentiments. Despite softer indicative bids from Turkish mills, buyers remained cautious, anticipating further price adjustments if demand doesn't improve. Sellers resisted due to high scrap costs in the US and Europe, despite challenging market conditions in Turkiye. A Baltic recycler indicated a potential easing in HMS collection costs, which could impact export dynamics to Turkiye. Turkish mills highlighted weak demand for finished steel, indicating possible scrap price adjustments if purchasing activity remains subdued.
Price assessments
India: UK-origin shredded scrap indicatives were assessed at $416/t CFR Nhava Sheva, down by $4/t d-o-d.
Pakistan: UK-origin shredded scrap indicatives were assessed at $440/t CFR Qasim, down by $2/t d-o-d.
Bangladesh: UK-origin shredded scrap prices were assessed at $432/t CFR Chattogram, down by $2/t d-o-d.
Turkiye: US-origin HMS (80:20) bulk prices were assessed at $416/t CFR Turkiye, unchanged d-o-d.
Outlook
Imported scrap offers are expected to exhibit volatility with slight adjustments. In India, fresh bookings are on hold until imported prices align with domestic levels. Buyers stipulate that shredded scrap offers should not exceed $400/t compared to the domestic market. Pakistani buyers may secure some volumes, albeit at a sluggish pace. Bangladeshi buyers await corrections before committing to substantial bookings. Furthermore, if Turkish mills maintain pressure, corrections may be observed in Europe and the US, according to market sources.
