South Asia: Imported ferrous scrap offers move up, few deals heard
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The South Asian imported scrap market is currently moving at a moderate pace. Earlier, a few deals were concluded at lower prices, however, as offers increase, Indian buyers are showing reluctance to accept the same. Meanwhile, sellers are quoting inflated prices after hefty deals concluded from Turkiye recently. In the midst of the ongoing Ashura holidays, Pakistani and Bangladeshi buyers remain silent with no fresh deals or bids coming from these markets. Rush buying from Turkish buyers continued at fluctuating prices irrespective of origins including that of Baltic and Germany.
Market Overview-
India: Imported ferrous scrap prices for UK-origin shredded into the country are at $412-415/t CFR Nhava Sheva/Mundra. Meanwhile, few traders are offering at the $405-408 level as a form of distressed selling. Fresh bids for the west coast India for European shredded are at $400/t, UK-origin HMS (80:20) at $365-370/t, and turning scrap from Europe at $330/t. Nevertheless, sellers in India are adopting a bullish stance after frequent deals done by Turkiye.
The domestic scrap market has experienced moderate trading activity, as the usage of sponge iron as a raw material is increasing. Sponge iron (CDRI) prices have been assessed at INR 31,200/t DAP.
Pakistan: Pakistan's imported ferrous scrap market has been silent due to the holidays. Although recent offers for Pakistan are heard at $410-412/t, a few traders are even quoting lower offers at $406-408/t. Market participants anticipate a further decline in offers up to $390-400/t.
Bangladesh: In Bangladesh, the imported scrap market has been inactive due to the Ashura holidays. Subdued demand in the steel industry has resulted in slightly lower offers for European PNS and shredded scrap. Current offers for European PNS are heard at $430-435/t, while shredded scrap is being offered at $420-425/t CFR Chhatogram.
Turkiye: The Turkish imported ferrous scrap market has seen continued rush buying at fluctuating price levels from various origins, including the Baltic and Germany. A Baltic scrap supplier successfully concluded a deal of HMS(80:20) at $349.5/t CFR Turkiye for August shipments, claiming the Baltic material of being of higher quality than the typical material.
Despite the potential challenges, a Germany-based supplier recently sold 20,000 t of HMS(80:20) scrap at $346/t and 5,000 t of bonus scrap at $366/t to a West Marmra-based mill.
However, the Turkish steel industry faces potential challenges as electricity prices are expected to surge by 50% or more in the near future. This could increase steel production costs by a minimum of $20/t, as per steelmakers.
Recent deals
- Around 1,000 t of Europe-origin shredded was sold at $405/t CFR Chennai.
- 500 t of Poland-origin turning boring scrap was sold at $355/t CIF Chennai.
- 1,500 t of Europe-origin HMS(80:20) was booked at $380/t CIF Chennai.
- 2,000 t (each) of European PNS and shredded was booked at $435/t and $425/t CFR Chattogram at the beginning of the week.
- 1,000 t of UK-origin shredded was booked at $420/t, and 1,000 t of Hong Kong-origin PNS was booked at $445/t a few days back.
- Around 500 t of European shredded was booked at $408/t CFR Qasim recently.
Price assessment
- India: UK-origin shredded scrap offers stand at $410/t CFR Nhava Sheva, inching up $4/t d-o-d.
- Pakistan: UK-origin shredded scrap offers are at $412/t CFR Qasim, up slightly d-o-d.
- Bangladesh: Offers for UK-origin shredded scrap are at $422/t CFR Chattogram, down by $3/t d-o-d.
- Turkiye: US-origin HMS 1&2 (80:20) prices inched up by $2/t d-o-d to $352/t CFR Turkiye.
Outlook
The hefty bookings from Turkiye at varied prices have been a significant reason for price fluctuations in the South Asian market. Along with this, domestic market conditions of respective nations are also directing prices. As long as Turkish buyers continue active purchasing, it may put upward pressure on scrap prices in the short term.
