South Asia: Imported ferrous scrap offers edge up amid rising freight costs

The South Asian ferrous scrap market saw a slight increase in offers d-o-d, despite weak demand across the region. Indian buyers showed limited interest due to bid-offer disparity and the aftermath of the elections. Pakistani buyers remained largely silent due to a sluggish domestic steel market, while Bangladeshi buyers exhibited moderate interest amid higher freight rates and limited viable offers.

Overview

India: In India, demand for imported scrap remained slow due to the aftermath of parliamentary elections. Additionally, a bid-offer disparity led to an absence of trades. Shredded scrap offers from the US and UK/Europe were assessed at $418-420/t CFR Nhava Sheva, while buyers' bids were assessed at $415/t CFR. Offers of HMS (80:20) from West Africa and Europe were assessed at $395-400/t CFR.

Pakistan: Pakistani buyers remained largely silent, showing minimal interest in imported scrap due to a sluggish domestic steel market. Offers of shredded scrap from the UK and Europe were assessed at $420-425/t CFR Qasim.

In the domestic market, local scrap prices hovered between PKR 150,000-156,000/t, while rebar prices were assessed at PKR 255,000-256,000/t.

Bangladesh: Bangladeshi buyers showed moderate interest in imported scrap. Indicative offers for shredded scrap from the UK/Europe were assessed at $425-430/t CFR Chattogram, while HMS (80:20) offers were at $405-410/t CFR.

In the domestic market, local ship-breaking scrap prices hovered around BDT 62,000-62,500/t, while rebar prices were assessed at BDT 85,000-90,000/t exw-Dhaka and BDT 95,000-96,000/t exw-Chattogram.

Turkiye: Turkish deepsea imported ferrous scrap prices remained unchanged amid limited market activity. Offers of US bulk HMS (80:20) stood at $379/t CFR, while EU-origin HMS (80:20) ranged from $372-375/t CFR. European sellers remained firm due to limited availability and strong domestic demand.

A steel mill official stated, "With fewer offers available, the market appears stagnant at around $379-380/t. Exporting countries are experiencing increased scrutiny as buyers cautiously evaluate their options. The influence of iron ore prices has effectively capped any significant upward movement in scrap prices, with expected fluctuations of perhaps (+/-2/t) CFR."

Price assessments

India: UK-origin shredded scrap indicatives were assessed at $418/t CFR Nhava Sheva, up by $1/t d-o-d.

Pakistan: UK-origin shredded indicatives were assessed at $424/t CFR Qasim, up by $2/t d-o-d.

Bangladesh: UK-origin shredded prices edged up by $1/t to $424/t CFR Chattogram.

Turkiye: US-origin HMS (80:20) bulk prices remained stable at $379/t CFR Turkiye.

Outlook

In the near term, imported ferrous scrap offers are likely to edge up despite weak demand from South Asian markets due to rising freight rates and container shortages. Indian buyers may resume bookings once there is better clarity on pricing and the aftermath of the recent elections. Bangladeshi buyers are struggling to procure seaborne scrap due to higher freight rates and limited viable offers. However, Pakistani buyers may look to procure imported scrap to restock ahead of the Eid holidays, commencing in the second week of June.