South Asia: Imported ferrous scrap offers into India rise $2/t d-o-d

Today the South Asian ferrous scrap market saw a slight increase in prices driven by higher offers from sellers despite limited demand. Indian buyers remained interested mainly in non-European cargoes, finalising a few deals. Pakistani buyers are procuring based on immediate needs due to payment delays caused by longer processing times for LCs. In Bangladesh, market activity continues, albeit at a slower pace, due to a sluggish domestic steel market and delays in LC approvals.

Shredded scrap offers increased by $2/t in India and Bangladesh, while prices remained unchanged in Pakistan. Offers for US bulk HMS (80:20) to Turkiye also remained stable d-o-d.

Market overview

India: Market activity in India has seen a slight uptick, although only limited deals involving small quantities from non-European sources were reported. Importing scrap from Europe remains financially unviable for Indian buyers. Indicative prices for shredded scrap from Europe ranged between $415 and $420/t CFR Nhava Sheva, with HMS (80:20) priced at $390-395/t CFR.

A representative from a trading company said, "The market is witnessing distress sales with buyers seeking shredded scrap at approximately $395/t and HMS at around $375/t CFR. These materials are expected to remain available on the market for the next 7-10 days before potential adjustments."

Another trader commented, "UK suppliers are proposing a price of $420-425/t for shredded scrap. Reports indicate a robust UK market but sluggish pace of collection prompt price hikes. However, Indian buyers may only consider paying up to $410/t now. Negotiations could potentially settle at $405-410/t for European shredded scrap and around $400/t for Australian HMS."

Offers for HMS 1 from Kuwait were reported at $420/t CFR, while bids were capped at levels not exceeding $400-405/t CFR.

Pakistan: Today in Pakistan, market activities maintained a moderate pace, with shredded scrap offers from Europe and the Middle East evaluated at $440-445/t CFR Qasim.

According to a mill official, "The imported scrap market is stable, with buyers in need booking scrap. However, payments are being delayed due to longer lead times in processing LCs."

Bangladesh: In Bangladesh, the demand for imported scrap has slowed down due to a comparatively slower domestic steel market and delays in LC approvals from banks. Shredded scrap offers from Europe were reported at $435-440/t CFR Chattogram, while HMS (80:20) was priced at $410-415/t CFR.

Turkiye: Turkish imported ferrous scrap prices dipped slightly with HMS (80:20) scrap offers at $412-413/t CFR. Turkish mills exhibited caution, holding back purchases in anticipation of further price drops. Some sources indicated prices could decrease further, but limitations may arise due to impending restocking needs and competition for scrap collection.

Despite ongoing downward pressure, Baltic recyclers reported steady collection costs, suggesting a potential stabilising factor in prices. HMS collection costs in the Baltic region remained unchanged at Euro 350/t, despite drops in the Benelux region. While a downward trend persists, market participants are adopting a wait-and-see approach, anticipating developments in the coming weeks as competition for material persists among exporters in the Baltic region.

Recent deals

• Around 1,000 t of shredded scrap were booked from Australia $440/t CFR Chattogram.
  
  
• A parcel of 500 t of PNS scraps were sourced from Australia at $450/t CFR Chattogram.
  
  
• Approximately 500 t of busheling scraps were booked from Malaysia at $450/t CFR Chattogram.
  
  
• A small parcel of 150-t of turning boring scraps were sourced from the UK $355/t CFR west coast India.
  
  
• About 250-t of PNS scraps were booked form Brazil at $410/t CFR west coast India.
  
  
• Around 500 t of HMS (80:20) scraps were booked from Brazil at $385/t CFR Nhava Sheva.
  
  
• A parcel of 1,500 t of HMS (hand-loaded) scraps were booked from Latin America at $395/t CFR west coast India.
  
  
• Around 1,000 t of shredded scraps were booked from Europe at $440/t CFR Qasim.
  
  

Price assessments

India: UK-origin shredded scrap indicatives were assessed at $418/t CFR Nhava Sheva, up by $2/t d-o-d.

Pakistan: UK-origin shredded scrap indicatives were assessed unchanged at $440/t CFR Qasim.

Bangladesh: UK-origin shredded scrap prices were assessed at $438/t CFR Chattogram, up by $2/t.

Turkiye: US-origin HMS (80:20) bulk prices were assessed unchanged at $413/t CFR Turkiye.

Outlook

Imported scrap offers in the South Asian markets are expected to stay relatively stable with minor fluctuations. Turkiye, being the largest scrap importer, foresees further price declines despite consistent collection costs and ongoing competition among exporters for material.