South Asia: Imported ferrous scrap offers range-bound, slight uptick in inquiries in western India

South Asian scrap markets displayed varied dynamics today. Indian buyers showed mixed activities, with the western region seeing some improvement, while southern buyers stayed cautious due to weak steel demand and high freight rates. Pakistan's market remained sluggish amid high costs and tax burdens, despite a rise in rebar prices. In contrast, Bangladeshi buyers were active, closing multiple deals, though they continued to face financing and shipment delays.

Overview

India: Indian buyers exhibited a mixed trend today. Some market participants in the western region reported a slight improvement, with several deals being finalized. In contrast, buyers in southern India remained uninterested in procuring seaborne scrap due to subdued steel demand and higher freight rates, which have led to increased offers, making procurement unviable. Additionally, production levels in the southern region remained low.

Indicative offers for shredded scrap from the US and UK/Europe were reported at $410-415/t CFR, while buyers' asking prices were assessed at $400-405/t CFR. Meanwhile, offers for HMS 80:20 from West Africa and UK/Europe were at $385-390/t CFR.

Pakistan: Pakistan's imported scrap market experienced a slow day, with buyers opting for minimal, need-based purchases. Despite a recent rise in rebar prices, its impact on scrap demand has yet to materialize. The market is under significant strain, with production levels hovering around 30-40%. Additionally, increased costs and a higher tax burden are weighing heavily on the market, further dampening demand.

Indicative offers for shredded scrap from the UK/Europe were assessed at $420-425/t CFR Qasim.

Bangladesh: Bangladeshi buyers remained active, finalising multiple container deals over the past few days. However, some buyers continued to face financing issues related to LC openings, with bulk bookings from March arriving only in late June, nearly 90 days late.

A market participant noted, "One major steel producer is booking ample scrap for its own consumption, likely due to an expansion in steel production. However, other companies are struggling with slower LC processes, exacerbating the difficulties in securing timely shipments."

Turkiye: Turkish imported ferrous scrap prices witnessed a range-bound trend in recently-concluded deals from the US and UK.

• A US-origin bulk scrap cargo, comprising HMS( 80:20), was booked by a Mediterranean region-based mill at $389/t with shredded and bonus at $409/t CFR.
  
  
• A UK-origin bulk scrap cargo was booked by a Central Anatolia-based mill comprising HMS (80:20) at $387/t CFR Turkiye.
  
  

Price assessments

India: UK-origin shredded scrap indicatives edged up by $1/t $414/t CFR Nhava Sheva d-o-d.

Pakistan: UK-origin shredded indicatives were assessed at $422/t CFR Qasim, down by $1/t d-o-d.

Bangladesh: UK-origin shredded prices were assessed at $423/t CFR Chattogram, up by $1/t d-o-d.

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