South Asia: Imported ferrous scrap offers inch up following recent Turkish trades

• Indian market quiet amid lower bids, focus on domestic scrap
  
  
• Turkish scrap prices rise slightly but market remains cautious
  
  

The South Asian ferrous scrap markets witnessed a slowdown amid subdued demand and limited offers. The Indian market remained quiet with lower bids for imported scrap, while Pakistan faced reduced activity due to a cash crunch, leading to barter arrangements. Bangladesh's market showed limited movement, while Turkiye saw a slight rise in scrap prices. Offers for UK/Europe shredded scrap dropped across India, Pakistan, and Bangladesh, while Turkiye saw a $4/t increase in prices.

However, offers for shredded scrap from the UK/Europe saw minor corrections across regions, increasing by $3/tonne (t) d-o-d in Bangladesh and $1/t in India and stable for Bangladesh.

Overview

India: The Indian market remained quiet as buyers prioritised domestic scrap, which is more readily available and cost-effective. Imported scrap offers for India include shredded scrap priced at $370-375/t CFR Nhava Sheva from sellers, while buyers are bidding lower. HMS (80:20) from the UK/Europe is offered at $340-345/t.

As per a supplier side source, 2,000-t loaded HMS from Libya was offered at $330/t for Indian buyers, but no deals were concluded as the bids fell short of the quoted price.

Pakistan: Pakistani buyers have been less active in the market due to a significant cash crunch. As a result, mill owners and suppliers are resorting to a barter system, where raw materials are provided by suppliers and mills process them into semi-finished products in exchange, benefiting both parties.

A supplier side source informed that offers for UK/Europe shredded scrap prices ranged from $380-385/t CFR Qasim.

Bangladesh: Bangladesh's imported scrap market remained sluggish, with no deals concluded this week which reflected a weakening market trend.

As per market participants, offers for Australian shredded stood at $375-380/t CFR Chattogram and $365/t for HMS (80:20).

Turkiye: Turkish deep-sea scrap prices experienced a slight increase following new deals, but the market outlook remains cautious. Traders are uncertain about a strong rebound, with many waiting to see what happens in February.

A UK-based trader commented, "I believe Turkish deep-sea scrap prices bottomed out last week. However, unsure about a rebound or any price increase next week. We will have to wait and see what February brings."

Similarly, a European recycler sentiment, expecting little change in prices for the upcoming week. "However, I am unsure about a real rebound. I don't expect much of an increase next week; we will have to wait and see."

Offers for high grade HMS (80:20) were at $340/t CFR Turkiye. Tradable prices for high grade HMS (80:20) were around $335/mt CFR Turkiye, and EU-origin scrap was traded between $330-333/t CFR Turkiye, with European scrap collection prices ranging from Euro 275-285/t delivered to dock.

A bulk deal was concluded by a West Marmara mill, purchasing US-origin HMS (80:20) at $336/t CFR and 26,000 t of HMS (80:20) along with 14,000 t of HMS 1 and PNS mix from the EU at $337/t CFR.

Price assessments

India: UK-origin shredded indicatives were assessed at $372/t CFR Nhava Sheva, up by $1/t compared to previous day.

Pakistan: UK-origin shredded indicatives were at $382/t CFR Qasim, rise by $3/t compared to previous day.

Bangladesh: UK-origin shredded was assessed at $381/t CFR Chattogram, stable d-o-d.

Turkiye: US-origin HMS (80:20) bulk scrap offers edged up by $4/t at $336/t CFR Turkiye compared to previous day.