South Asia: Imported ferrous scrap offers edge up slightly in mixed market

• Indian market still quiet, bid-offer disparity persists
  
  
• Pak buyers secure multiple deals in improved market
  
  

The South Asian and Turkish scrap markets displayed a varied trend, with cautious buyer sentiments and differing levels of activity across regions. In India, the market remained subdued post-Diwali, as bid-offer gaps and weak steel demand kept mills from purchasing scrap. Pakistani buyers, on the other hand, secured several deals as domestic scrap prices saw slight improvements. Meanwhile, Bangladeshi buyers held back due to stagnant construction demand and high offer levels. In Turkiye, scrap prices stabilised as sellers grew confident that the market had found a bottom, although limited global demand raised concerns about future price increases. Despite limited global demand, recent deals led to slightly higher offer levels across these markets.

Overall, offers edged up slightly.

Overview

India: Indian buyers continued to stay on the sidelines today, with many yet to return to the market after the week-long Diwali holiday. According to market sources, bid-offer disparities persist, and the slowdown in finished steel demand has further affected scrap purchases by mills.

Indicative offers for shredded scrap were quoted at no less than $390-395/t CFR Nhava Sheva, though buyers remained uninterested above $385/t CFR, sources told BigMint. Meanwhile, UK/Europe and West African HMS (80:20) scrap offers stood at $370-375/t CFR, with buyers' expectations around $360-365/t CFR.

Pakistan: Pakistani buyers were relatively active, securing several deals toward the end of last week. A slight improvement in domestic scrap prices, along with the absence of other South Asian markets, presented an opportunity that led to multiple bookings. Indicative offers for shredded scrap from the UK/Europe were heard in the range of $385-390/t CFR Qasim.

Bangladesh: Bangladesh's imported scrap market remained subdued as weak steel demand and disruptions in construction activities continued to weigh on scrap purchases. The market sentiment reflects ongoing caution, with HMS (80:20) offers from Europe in the range of $380-385/t CFR Chattogram and shredded scrap at around $395/t CFR. However, containerised scrap remained largely off the table, as buyers focused on smaller bulk bookings from nearby regions. Offers from the US for bulk scrap at $390/t were considered too high to be viable.

A market participants said, "Although government infrastructure projects, including recently approved metro rail lines and an extension of the elevated expressway, are anticipated to boost long steel and structural steel demand, these developments are not expected to impact demand meaningfully until next year."

Turkiye: Turkish deep-sea imported scrap prices held steady, with US origin HMS (80:20) at $363/t CFR. Sellers seemed confident that prices had reached a local bottom ahead of the US election period and Turkiye's domestic buy week. Market participants expect prices to stabilise or possibly rise, with some sellers holding off on sales until mid-November. However, limited global demand and slow alternative markets could constrain any significant price increase. Meanwhile, Turkish rebar export prices remained flat at $590/t FOB, keeping the scrap-to-rebar spread wide at $227/t.

Price assessments

India: UK-origin shredded scrap indicatives edged up by $1/t at $388/t CFR Nhava Sheva compared to the last closing day on Friday.

Pakistan: UK-origin shredded indicatives edged up by $1/t at $390/t CFR Qasim compared to last closing day.

Bangladesh: UK-origin shredded prices were at $393/t CFR Chattogram, up $1/t compared to the last closing day on Friday.

Turkiye: US-origin HMS (80:20) bulk prices edged up by $1/t at $363/t CFR Turkiye compared to the last closing day.