South Asia: Imported ferrous scrap offers remain largely stable d-o-d, Indian buyers show optimism

• Cash flow issues, tepid demand pressure Pakistan
  
  
• Firm seller offers, wary buyers keep Turkiye quiet
  
  

The South Asian imported scrap market displayed mixed sentiments as the new year began. Overall, UK-origin shredded offers remained steady d-o-d across regions. Likewise, HMS (80:20) offers to Turkiye also followed a stable trend.

India witnessed moderate demand, supported by optimism from improved domestic steel market dynamics and expected freight hikes. Pakistan's market remained subdued due to cash flow challenges and slow demand, while Bangladesh saw a slight revival, driven by better banking conditions and local demand, though long-term stability is uncertain. Meanwhile, Turkiye's scrap market stayed quiet during the holiday, with buyers and sellers engaged in a stand-off over pricing.

Overview

India: In India, imported scrap demand remained moderate, with buyers showing cautious optimism, driven by improved domestic steel market sentiments and expectations of price hikes following reports of increased US freights.

Indicative offers for shredded from the UK/Europe and the US stood at $385-390/t CFR Nhava Sheva, while HMS 80:20 from the UK/Europe was assessed at $360-365/t CFR and West African material at $365-375/t CFR, depending on loading.

Hand-loaded HMS from Latin America was offered at $385-390/t CFR, Peru HMS/PNS mix at $390/t CFR (bids at $385/t), and UAE fabrication scrap at $390-395/t CFR.

Pakistan: Pakistan's imported scrap market remained subdued due to New Year holidays, low demand, and ongoing cash flow challenges. Market activity stayed slow, reflecting cautious buyer sentiment and limited liquidity.

Local scrap prices hovered at around PKR 140,000-148,000/t ex-factory, while rebars stood at PKR 230,000-240,000/t. Imported UK-origin shredded was offered at $390-395/t CFR Qasim, with Dubai HMS at $370/t CFR.

Bangladesh: Bangladesh's imported scrap market saw a modest revival, driven by improved banking conditions and local demand, though long-term stability remains uncertain. Rebar prices of major steel mills increased by BDT 4,000-5,000/t, supported by government projects and robust corporate sales.

Bulk HMS offers from Singapore were at $375-380/t CFR Chattogram, Japanese H2 was at $345-350/t CFR, and US offers stood at $370-375/t CFR, though buyer activity remained subdued.

A bulk deal was heard to be finalised for around 25,000 t of HS and Shindachi mix scrap from Japan at $360-365/t CFR Chattogram.

Domestically, scrap prices varied within BDT 50,000-53,000/t depending on grades, while rebar prices were at BDT 80,000-85,000/t ex-Dhaka and Chattogram. Billets were offered at BDT 67,000-70,000/t.

Turkiye: The Turkish imported scrap market remained quiet on New Year's Eve, with deep-sea import prices holding steady d-o-d at $346/t CFR for US-origin HMS (80:20). The market reflected a mixed sentiment, with sellers firm on their offers and buyers cautious. Mills aimed for lower levels, while US recyclers resisted offers below $350/t CFR, citing unworkable margins.

Limited restocking demand and holiday lethargy curbed activity. While some expect prices to rebound slightly in the new year, Turkish mills expect deals below $345/t CFR as buying interest revives.

Price assessments

India: UK-origin shredded indicatives were assessed stable d-o-d at $387/t CFR Nhava Sheva.

Pakistan: UK-origin shredded indicatives were assessed at $393/t CFR Qasim, unchanged d-o-d.

Bangladesh: UK-origin shredded held firm d-o-d at $394/t CFR Chattogram.

Turkiye: US-origin HMS (80:20) bulk was assessed stable d-o-d at $346/t CFR Turkiye.