South Asia: Imported ferrous scrap offers largely stable d-o-d

The South Asian scrap markets exhibited diverse trends: In India, there had been persistent disinterest due to domestic cost advantages despite competitive prices for US and UK/European scrap. Pakistan had seen slowed demand amid market volatility and logistical challenges. Bangladesh had maintained moderate demand amid seasonal factors. In Turkiye, stability prevailed following US-origin deals, with cautious optimism amid steady pricing and competitive pressures from Europe.

Overview

India: Indian buyers remained disinterested in imported scrap due to significant bid-offer gaps and more economical alternatives available domestically. Shredded scrap from the US and UK/Europe was priced at $410-415/t CFR Nhava Sheva, with no takers at these levels. Offers of West African and UK/European HMS (80:20) were assessed at $385-390/t CFR.

A trader noted, "The market is sluggish; buyers are opting for domestic scrap priced lower, making imports less viable. Additionally, with production exceeding consumption, mills may need to reduce output. Suppliers are reluctant to lower prices due to increased freight and shipping costs."

Pakistan: In Pakistan, demand for imported scrap slowed as buyers adjusted purchases amid domestic market volatility and rising imported scrap prices. Offers of shredded scrap from the UK/Europe were evaluated at $425-430/t CFR Qasim.

A steel mill official noted, "Container shortages are affecting suppliers, likely increasing freight costs similar to the spikes seen during the 2020 pandemic. Safety issues on the Red Sea route have led vessels to divert through the longer Cape Town route to South Asia, raising shipping times and operational expenses. Given these logistical challenges, a reduction in freight rates appears unlikely in the near future."

Bangladesh: Bangladesh's demand for imported ferrous scrap stayed moderate, influenced by a sluggish domestic steel market during the rainy season. Preference among buyers has shifted towards Australian and Singapore-origin scraps. Reports indicated that the booking of two bulk vessels from Singapore, each carrying 8,000 t of HMS 70:30 at an average price of $400/t CFR Chattogram. Market participants noted freight rates from Singapore to Bangladesh hovering around $40-45/t.

Notably, around 3,000 t of HMS (80:20) were booked from Australia at $405/t CFR Chattogram

Turkiye: Turkish imported scrap market prices remained stable following the recent US-origin deal, with offers for HMS (80:20) holding steady at $390/t CFR. European recyclers faced competitive pressures with offers slightly below US-origin prices, while Turkish mills expressed cautious optimism amid market quietude.

Price assessments

India: UK-origin shredded scrap indicatives were kept unchanged at $413/t CFR Nhava Sheva, d-o-d.

Pakistan: UK-origin shredded indicatives edged down by $1/t to $428/t CFR Qasim, d-o-d.

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

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