South Asia: Imported ferrous scrap offers remain range-bound amid soft demand

The South Asian ferrous scrap market remained unchanged d-o-d. In India, demand for imported scrap has slowed due to a disparity between bids and offer prices and a lack of confidence in current offers. In Pakistan, buyers were notably inactive due to a lack of interest in the domestic market. In Bangladesh, steelmakers have significantly reduced their steel scrap purchases because of a sluggish domestic market and higher offer prices.

Shredded scrap offers remained unchanged in India and Pakistan, while offers inched down by $1/t in Bangladesh. Bulk HMS (80:20) offers from the US edged down by $1/t.

Overview

India: In India, the demand for imported scrap has slowed due to a disparity between bid and offer price, coupled with a lack of confidence in current offers. Buyers are anticipating a drop in prices due to softening global scrap market sentiment. Offers for shredded scrap from the US and Europe are currently assessed at $415-420/t CFR, while buyers are targeting around $410-415/t CFR.

Similarly, HMS (80:20) offers are being heard at approximately $400-405/t CFR, with buyers aiming for the lower end of this range, around $395-400/t CFR.

Pakistan: Pakistani buyers were notably inactive today due to a lack of interest in the domestic market. Offers for shredded scrap from Europe were evaluated at $415/t CFR Qasim.

Bangladesh: Bangladeshi steelmakers have significantly reduced their scrap purchases due to a sluggish domestic market and higher offer prices.

As per a major steel mill source, as monsoons are approaching, many mills anticipate further sluggishness in local demand in the coming weeks. Bookings will remain low, at least for a month, until late June.

Turkiye: Turkish imported ferrous scrap prices slightly declined due to a weaker euro and expected lower Benelux collection costs. Offers for HMS (80:20) were assessed at $379/t CFR, down $1 from the previous day. An EU-origin deal was heard to have been concluded at $372/t CFR for HMS (80:20), as a result of which near-term price expectations weakened, with mills now targeting $370/t CFR from Europe. Benelux HMS collection costs were stable at Euro 305/t delivered to docks. The euro's depreciation further softened dollar-denominated offers.

Price assessments

India: UK-origin shredded scrap indicatives were assessed stable d-o-d at $418/t CFR Nhava Sheva.

Pakistan: UK-origin shredded indicatives were assessed unchanged at $416/t CFR Qasim.

Bangladesh: UK-origin shredded prices were assessed at $420/t CFR Chattogram, down by $1/t d-o-d.

Turkiye: US-origin HMS (80:20) bulk prices were assessed at $379/t CFR Turkiye, down by $1/t d-o-d.

Outlook

In the near term, imported ferrous scrap offers are likely to see a slight correction due to subdued buying interest, bid-offer disparity, a sluggish domestic steel market, and payment delays. Consequently, suppliers may reduce scrap offers to boost sales, also aided by softening collection costs in Europe.