South Asia: Imported ferrous scrap offers remain stable d-o-d except in India
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The South Asian ferrous scrap market further softened today. In India, demand for imported scrap remained subdued due to low finished steel offtake and the availability of cost-effective domestic alternatives. Pakistani buyers saw limited interest due to sluggish domestic steel market. In Bangladesh, demand showed slight improvement, with major buyers inquiring about US bulk cargoes, though challenges with letters of credit (LC) openings and a slow domestic steel market persisted due to the monsoon season. Meanwhile, Turkiye's imported scrap prices remained stable, with balanced market conditions but limited export rebar demand.
Overview
India: In India, demand for imported scrap remained subdued due to low finished steel offtake and the availability of cost-effective domestic alternatives. Additionally, buyers faced a cash flow crunch due to delayed credit payments, further impacting consumption. Indicative offers for shredded scrap from the US and UK/Europe were assessed at $410-415/t CFR, while buyers aimed for lower levels around $400-405/t CFR. HMS (80:20) offers from West Africa and UK/Europe were heard at $385-390/t CFR.
Pakistan: Pakistan's imported scrap market saw containerised offers from the UK/Europe for shredded scrap at $430/t CFR Qasim, with bids at $424-425/t CFR Qasim for late July shipment. UAE offers for shredded and HMS-PNS mix were at $430-435/t CFR.
Domestic scrap was offered at PKR 155,000-158,000/t exw, with limited interest. Billet and rebar were priced at PKR 218,000-220,000/t and PKR 260,000-263,000/t, respectively. The steel market remained sluggish, with infrastructure projects awaiting budget approvals, and steelmakers hoping for market improvements to sell their inventories.
Bangladesh: In Bangladesh, there was a slight improvement in demand today, with several major buyers actively inquiring about US bulk cargoes. However, challenges persisted in opening LCs and a slowdown in the domestic steel market due to the monsoon season. Indicative offers for shredded scrap from Australia were at $430/t CFR Chattogram, but buyers' bids were around $420-425/t CFR. HMS (80:20) offers were at $410-412/t CFR, while buyers were asking for $400-405/t CFR.
Bulk offers from the US included shredded scrap at $410/t CFR and HMS (80:20) at $405/t CFR, with bids at $402-405/t.
Turkiye: Turkish imported scrap market prices remained stable. Offers for bulk HMS (80:20) from the US was assessed at $390/t CFR, while EU-origin HMS (80:20) was at $384-385/t CFR. Several deals for EU-origin scrap were reported yesterday. Despite the market being balanced, Turkish mills are struggling to attract export rebar demand, keeping prices range-bound. High collection costs in Europe are expected to limit price drops.
Price assessments
India: UK-origin shredded scrap indicatives were assessed at $410/t CFR Nhava Sheva, down by $1/t d-o-d.
Pakistan: UK-origin shredded indicatives were assessed unchanged at $426/t CFR Qasim.
Bangladesh: UK-origin shredded prices were assessed flat at $424/t CFR Chattogram.
Turkiye: US-origin HMS (80:20) bulk prices were assessed at $390/t CFR Turkiye, unchanged.
