South Asia: Imported ferrous scrap offers edge up on firm stance from suppliers

Today, South Asian ferrous scrap prices experienced a slight increase as suppliers maintained their offers at a steady level. However, market activities were limited due to various factors, including the slow pace amid festivities in India, need-based purchasing in Pakistan, and letters of credit (LC)-related issues in Bangladesh. Imported shredded scrap offers saw an uptick, rising by up to $1-3/t across markets.

Market overview

India: Today in India, market activities have been subdued as participants continued to embrace a holiday mood. Meanwhile, European suppliers are grappling with container shortages and are keen on destocking before the onset of winter holidays as a result of which they are holding offers steady. Offers for shredded scrap from Europe were reported at $416-418/t CFR Nhava Sheva, while HMS (80:20) was observed at $390-395/t CFR.

Indicative offers for turning boring scraps from Europe were assessed at $375/t CFR, while bids were heard at $355-360/t CFR.

Pakistan: In Pakistan buyers continued to procure imported scrap on need basis as domestic scrap is more cost-effective in comparison to those of imported ones. Shredded scrap offers from Europe were reported in the range of $415-418/t CFR Qasim. However, workable levels as per buyers stood at around $412-413/t CFR.

In the domestic market, local scrap prices were heard at PKR 155,000-160,000/t exw, while grade 60 rebars were reported at PKR 260,000/t exw.

Bangladesh: In Bangladesh, market activities have slowed down, attributed to the forthcoming elections and constraints related to LC. Shredded scrap from Europe were being offered at $428-430/t CFR Chattogram and $425/t CFR from Australia.

Australian HMS (80:20) scrap were being offered in the range of $410-415/t CFR, with bids hovered around $405-408/t CFR.

Sources reported the booking of approximately 12,000-14,000 t of HMS 1 and PNS from the Middle East at $415-417/t CFR Chattogram during the previous week.

US-bulk shredded scrap offers were noted at $415/t CFR, HMS (80:20) at $405/t CFR, and bonus at $418-420/t CFR. However, no deals at these levels were reported due to delays in LC opening.

Turkiye: Turkish imported scrap prices exhibit upward potential as December shipment requirements for mills are not fully covered, with expectations of additional bookings. Although, suppliers raised prices based on recent deals, the market is relatively quiet, with many mills having already secured their needs. The overall atmosphere is optimistic for the coming days.

SteelMint's assessment for HMS (80:20) offers for US origin stood at $384/t CFR, a $10/t increase w-o-w.

Turkish mills face limited support for increased long-product prices amid weak local and international demand. The current trend is expected to continue until the rise in import scrap prices stabilises, impacting rebar prices similarly.

Recent deals

• Around 5,000 t of HMS (80:20) scraps were booked from Australia at $407/t CFR Chattogram.
  
  
• Around 500 t of East Africa origin (Mozambique) HMS (80:20) were booked at $385/t CFR Mundra.
  
  

Price assessments

India: UK-origin shredded scrap offers were up by $3/t to $416/t CFR Nhava Sheva today.

Pakistan: UK-origin shredded scrap offers edged up by $1/t to $416/t CFR Qasim today.

Bangladesh: Offers for UK-origin shredded scrap edged up by $2/t to $428/t CFR Chattogram today.

Turkiye: US-origin HMS 1&2 (80:20) prices stood at $384/t CFR Turkiye, up by $4/t d-o-d today.

Outlook

Imported ferrous scrap offers in South Asian countries are expected to stay strong as suppliers are keeping their offers steady due to the constrained availability of containers and elevated electricity costs in the UK and Europe. Additionally, the rise in hot-rolled coil prices and seasonal factors like hunting season, colder weather, and the start of the holiday season are contributing to a decline in scrap yard inflows. These combination of factors further reinforces the anticipation of an increase in scrap prices across regions.