South Asia: Imported ferrous scrap offers range-bound amid lack of buying interest

The South Asian imported ferrous scrap offers remained range-bound today. In India, buyers remained inactive due to unviable price levels, favouring domestic scraps instead. Meanwhile, Pakistan's imported scrap demand was moderate, with limited inquiries amid a slowdown in the domestic steel market. In Bangladesh, imported scrap demand was impacted by partial network disconnectivity, limiting connections with suppliers.

Overview

India: Indian buyers remained inactive due to the unviability of current price levels, preferring domestic scraps for their cost-effectiveness. Indicative shredded scrap offers from the US and UK/Europe were reported at $410-415/t CFR Nhava Sheva, with no bids at these prices.

HMS (80:20) offers from West Africa and UK/Europe were assessed at $385-395/t CFR.

A buyer from northern India stated, "There is no viability at current offer levels. Suppliers have stopped quoting offers for the last 10 days. Local demand in the UK and Europe is better. Some trades with Africa and the Middle East have occurred, but the quantities are low. The gap between imported and domestic scrap is around INR 3000-3500/t. Buyers are now preferring subgrades such as LMS and turnings, with very few takers for shredded and HMS."

Pakistan: Imported scrap demand in Pakistan was moderate today with limited inquiries amidst a slowdown in domestic steel market because of squeezed margins and delayed payments. Indicative offers for shredded scrap from the UK/Europe were assessed at $425-430/t CFR, while that from the UAE were at $435-440/t CFR.

Bangladesh: Imported scrap demand in Bangladesh remained impacted due to partial network disconnectivity. Market participants reported that limited internet access hindered connections with suppliers. A couple of offers were received from the US at $410/t CFR for HMS containers and $415/t CFR from Australia.

Shredded scrap from Australia was offered at $430-435/t CFR, but buyers showed interest only at $425-427/t CFR. PNS offers from Malaysia and Hong Kong were at $448-450/t CFR, with little interest from Dhaka mills.

Turkiye: Turkish deep-sea imported ferrous scrap prices remained range-bound, with a bearish near-term sentiment due to a weak global finished steel outlook. Offers for HMS (80:20) scrap from the US were heard at $389/t CFR. The bearish sentiment was driven by weak demand for Turkish finished steel, both domestically and for export, and a recent decline in billet prices, an alternative input for rebar production. Turkish mills have imported significant chunk of billets, impacting demand for September scrap shipments. EU recyclers' holidays and low scrap supply kept prices firm, counterbalanced by lack of demand.

Price assessments

India: UK-origin shredded scrap indicatives were assessed at $413/t CFR Nhava Sheva, down by $1/t d-o-d.

Pakistan: UK-origin shredded indicatives were assessed at $427/t CFR Qasim, up by $1/t d-o-d.

Bangladesh: UK-origin shredded prices were assessed at $426/t CFR Chattogram, up by $1/t d-o-d.

Turkiye: US-origin HMS (80:20) bulk prices were assessed at $389/t CFR Turkiye, down by $1/t d-o-d.