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South Asia: Imported ferrous scrap offers drop d-o-d owing to subdued demand

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Melting Scrap
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19 Nov 2024, 19:23 IST
South Asia: Imported ferrous scrap offers drop d-o-d owing to subdued demand

  • Subdued steel market sentiment dampens scrap demand in India

  • Partial lockdown puts brakes on buying interest in Pakistan

The South Asian imported scrap market experienced a slow pace today, with key markets such as India, Pakistan, Bangladesh, and Turkiye facing weak demand and cautious sentiment. Indian buyers remained on the sidelines due to subdued steel market conditions and ample inventories, while Pakistan's market was hindered by a lockdown in Lahore, further reducing activity. In Bangladesh, financial constraints and LC restrictions kept buyers from making significant moves, despite stable offers. Turkiye's market saw a slight decline in scrap prices as sluggish rebar sales and colder weather dampened demand.

Imported scrap offers dropped by up to $4/t d-o-d.

Overview

India: Indian buyers remained cautious, staying on the sidelines amid subdued steel market sentiments, abundant inventories of raw materials and finished steel, and a wait-and-watch approach for clearer price trends. Indicative offers for shredded scrap from the US and UK/Europe were reported at $390-395/t CFR Nhava Sheva, while buyers considered $385/t CFR as more workable. HMS (80:20) offers from UK/Europe hovered at $365-370/t CFR, but buyers targeted $360/t CFR levels.

A trader remarked, "Indian buyers are closely monitoring global sentiment and the domestic steel price recovery, which seems unlikely in the short term. Buying interest for shredded is around $380-385/t from the US and Europe. However, with the Turkish market bottoming out, offers may rise as buyers secure material for late December and January shipments. Bulk inquiries from India could surface in the coming days."

Another trader noted, "The market remains sluggish, with limited buyer interest and a $5/t gap persisting between offers and buyer expectations."

Pakistan: Pakistan's imported scrap market saw limited activity today, with demand remaining weak amid a lockdown in Lahore due to severe smog. Offers for EU/UK-origin shredded scrap stood at $392-395/t CFR, but buyers held back, targeting $380/t for February shipments.

Local scrap prices were at PKR 140,000-140,000/t, while rebar in Punjab was quoted at PKR 248,000-252,000/t. Karachi saw rebar at PKR 248,000/t for cash and PKR 255,000/t on credit, as sellers pushed for cash sales to address liquidity challenges.

Suppliers are cautious, watching domestic steel demand closely, while higher offers above $395/t may further limit buyer interest.

Bangladesh: Bangladesh's imported scrap market remained muted today as weak steel demand and financial constraints, including LC restrictions, kept buyers on the sidelines.

Offers for shredded scrap from the UK/Europe hovered at $390-395/t CFR Chattogram, while HMS (80:20) was at $380-385/t CFR levels. Offers for premium grades, such as Malaysian busheling, stayed above $425/t, but interest was limited.

Domestic scrap prices ranged from BDT 50,000-53,000/t, while billet hovered at BDT 67,500/t and rebar at BDT 78,000-80,000/t. Mills remain cautious, eyeing potential price drops as high inventories and LC issues persist.

Turkiye: Turkiye's imported scrap market softened today as HMS (80:20) prices dipped to $354/t CFR, down $1/t. A Baltic-origin deal was confirmed at this level, reflecting ample supply and weak demand. Mills showed limited buying interest due to sluggish domestic rebar sales and declining export prices, assessed at $577.50/t FOB. The colder weather has slowed construction activity, further reducing domestic rebar demand. European recyclers gained a competitive edge from the weaker euro, while US recyclers faced pushback at $360/t CFR. Despite good margins, mills remain cautious, with market sentiment leaning toward potential further price adjustments.

Price assessments

India: UK-origin shredded scrap indicatives edged down by $3/t d-o-d to $388/t CFR Nhava Sheva.

Pakistan: UK-origin shredded indicatives remained unchanged d-o-d at $390/t CFR.

Bangladesh: UK-origin shredded prices were at $390/t CFR Chattogram, down $4/t d-o-d.

Turkiye: US-origin HMS (80:20) bulk prices dropped by $3/t d-o-d to $354/t CFR Turkiye.

19 Nov 2024, 19:23 IST

 

 

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