South Asia: Imported ferrous scrap offers edge down by up to $3/t across market amid limited buying interest

Today, the South Asian ferrous scrap market witnessed a downward trend, primarily due to limited inquiries across markets. Indian market remained subdued, largely due to discrepancies in bids and offers. Similarly, Pakistan and Bangladesh markets slowed their purchases due to challenges in LC approvals and a slowdown in the domestic steel market.

Shredded scrap offers saw a decline of up to $2-3/t in India, Pakistan, and Bangladesh. Additionally, US bulk HMS (80:20) offers to Turkiye also decreased by $2/t today.

Market overview

India: Today in India, the demand for imported scrap was reported as lackluster, primarily due to diminished interest in European-origin scraps owing to significant price differentials compared to domestic scrap. Indicative offers for shredded scraps from Europe were assessed at $418-420/t CFR, while HMS (80:20) stood at $390-395/t CFR. Meanwhile, bids remained stagnant at approximately $400/t CFR for shredded and $380-385/t for HMS scraps. Offers for CR busheling from Germany for fresh bookings were reported at around $440/t CFR on the west coast.

A trader remarked that buyers were deterred by the substantial price disparity, leading to reluctance in booking fresh scraps from the seaborne market.

A mill official remarked, "Sales are sluggish. However, scrap shortages have begun, leading to a slight increase in domestic scrap prices. Fresh offers for CR busheling scraps from Germany were observed at $440/t. Due to uncertainty, we haven't made any bookings yet."

Another trader remarked, "Indian buyers are gradually beginning to make bookings as domestic scrap collection is slightly slow, and a few mills have initiated inquiries for Australian and Bahrain shipments."

Pakistan: In Pakistan, market activities have decelerated due to delays in LC approvals faced by buyers. Indicative offers for shredded scrap from Europe were evaluated at $435-440/t CFR Qasim. Additionally, market sources reported that US-origin shredded scraps were offered at $435/t CFR.

A steel mill official commented, "Anticipation suggests that bookings will remain sluggish this week as well, and we haven't witnessed significant volume. It's true that LC problems have resurfaced."

Bangladesh: Bangladeshi buyers have slowed their purchases amidst delays in LC processing from banks coupled with a slow down in domestic steel market. Indicative offers for shredded scrap from Europe were assessed at $435-440/t CFR Chattogram, while HMS (80:20) were heard at $410-415/t CFR.

Offers for HMS scraps from Latin America were assessed at $405-408/t CFR, while PNS from Hong Kong were priced at $438-440/t CFR.

Turkiye: Turkish import ferrous scrap prices experienced a slight decline attributed to sluggish rebar sales, allowing Turkish mills to exert further pressure on sellers. Tradable values for EU/UK-origin HMS (80:20) ranged from $405-406/t CFR. Meanwhile, US/Baltic-origin HMS (80:20) varied from below $410-412/t CFR, with a predominantly softer trend. Turkish mills displayed no urgency in scrap import due to sluggish rebar sales, expressing a desire for lower prices. Buyers anticipated further declines, with an indicative bid for US-origin HMS (80:20) at $400/t CFR.

As per market sources, a deal involving 22,000 t of HMS (80:20) were booked from Germany at around $406/t CFR and about 3,000 t of bonus scrap at $431/t CFR by a Marmara mill.

Recent deals

• Around 500 t of HMS (80:20) scraps were booked from Central America at $393/t CFR Nhava Sheva.
  
  
• About 1,500 t of HMS 1 scraps were procured from Australia at $415/t CFR Chattogram.
  
  
• Approximately 1,000 t of PNS scraps were booked from UAE at $445/t CFR Chattogram.
  
  
• A parcel of 1,500-t of shredded scrap from Australia at $430/t CFR Chattogram.
  
  
• Around 1,000 t of shredded scraps were booked from UK at $438/t CFR Qasim.
  
  

Price assessments

India: UK-origin shredded scrap indicatives were assessed at $415/t CFR Nhava Sheva, down by $3/t d-o-d.

Pakistan: UK-origin shredded scrap indicatives were inched down by $2/t to $438/t CFR Qasim.

Bangladesh: UK-origin shredded scrap prices were assessed at $437/t CFR Chattogram, down by $1/t.

Turkiye: US-origin HMS (80:20) bulk prices were assessed at $411/t CFR Turkiye, down by $2/t d-o-d.

Outlook

In the near term, market activities are expected to face pressure due to current market sentiments. Indian buyers remain uninterested in purchasing scrap from Europe and are likely to hold off until offers reach workable levels of $400/t. Deals with other origins may occur due to shortages in the domestic market, but the pace is anticipated to be slow amid ongoing distress sales. In Pakistan and Bangladesh, markets may continue to procure based on the availability of LC from banks. Turkish buyers anticipate price drops and have adopted a wait-and-watch approach.