South Asia: Imported ferrous scrap offers edge up d-o-d despite sluggish demand

The South Asian ferrous scrap offers edged up by $1/t d-o-d. However, market activities remained sluggish. Indian buyers continued to stay on the sidelines due to bid-offer disparities. The Pakistani market was slow due to the observance of Muharram. Meanwhile, Bangladesh showed moderate activity amid financial and economical challenges.

Overview

India: Indian buyers have continued to show disinterest in imported scrap due to significant bid-offer disparities. Additionally, some suppliers have withdrawn from giving offers in India due to sluggish demand and low margins. Indicative offers for shredded scrap were reported to be around $410-415/t CFR, while buyers were bidding at $400-405/t.

Meanwhile, a few suppliers suggested that offers for shredded scrap should actually be around $425-430/t CFR Nhava Sheva. "Due to this $15-20/t CFR gap, we refrained from offering in the Indian market," said a supplier.

Pakistan: Pakistan's imported ferrous scrap market was slow today due to the observance of Muharram. Market participants noted that activities tend to slow down during this period.

The domestic steel market was observed to be moderate, with buyers procuring on an as-needed basis. Indicative offers for shredded scrap from the UK/Europe were assessed at $425-430/t CFR Qasim.

In the domestic market, local scrap prices were assessed at PKR 152,000-158,000/t, while rebars were at PKR 255,000-260,000/t.

Bangladesh: Today, demand for imported scrap in Bangladesh remained moderate due to a slowdown in the domestic steel market. Several steel mills have reportedly shut down because of high bank interest rates, low demand, and shrinking working capital driven by high exchange rates.

Indicative offers for shredded scrap from the UK/Europe were heard at $425/t CFR Chattogram, while HMS (80:20) was priced at $405-410/t CFR.

Turkiye: Turkish deep-sea imported ferrous scrap prices remained stable amid limited deal activity and a pause in restocking by mills. Indicative values for US-origin HMS (80:20) remained around $390/t CFR, while EU-origin values were at $385/t CFR. Mills continued to purchase at $390/t CFR, needing scrap for August. Scrap generation was slow in the UK, US, and Europe, stabilising prices. US ferrous scrap prices remained steady, supporting market stability. Turkiye scrap futures on the LME indicated flat near-term pricing.

Price assessments

India: UK-origin shredded scrap indicatives were assessed at $415/t CFR Nhava Sheva, up by $1/t d-o-d.

Pakistan: UK-origin shredded indicatives were assessed at $428/t CFR Qasim, up by $1/t d-o-d.

Bangladesh: UK-origin shredded prices were assessed at $425/t CFR Chattogram, up by $1/t d-o-d.

Turkiye: US-origin HMS (80:20) bulk prices were assessed at $390/t CFR Turkiye, unchanged.