South Asia: Imported ferrous scrap offers ride Turkiye deal, remain elevated

The South Asian ferrous scrap market observed limited containerised transactions, primarily originating from India and Pakistan, while Bangladesh exhibited relatively subdued activity. Offers remained elevated due to recent high-priced Turkish scrap agreements. Sellers remained steadfast, exerting pressure on buyers. Waiting for further price declines was deemed inappropriate, according to market sources.

Market Overview

India: Shredded scrap offers in containers were heard at around $432-436/t CFR from Europe. However, buyers are still quoting at around $415-420/t CFR, resulting in bid-offer disparities. Thus, buyers are not comfortable in booking large volumes.

In the domestic market, demand for semis and finished steel has increased. As a result, market sentiments have improved. Scrap prices across regions rose by about INR 200-600/t today.

Pakistan: The imported scrap market is dull in Pakistan as there is no demand for scrap at the moment. Moreover, prices are likely to rise further owing to short scrap availability as mills are not fully functional.

In the domestic market, offers for shredded scrap are hovering at PKR 180,000/t ($607/t) while that of rebars are at PKR 270,000-275,000/t ($911-928/t).

Bangladesh: The imported ferrous scrap market in Bangladesh was slower in comparison. Offers were at approximately $442-445/t, with expectations of further upward corrections owing to heightened market activity, especially among bulk buyers from Turkiye. Bangladeshi buyers diversified their sourcing from various origins to safeguard margins. The local rebar and finished steel market displayed sluggish demand trends. Bulk offers from Japan and the US hovered around $410-415/t, followed by PNS offers in containers at $445-450/t.

Turkiye: The imported ferrous scrap market in Turkiye remained active, with multiple deals from Europe and the Baltic region concluded at higher prices compared to previous days. Sellers exerted pressure, and limited availability contributed to the price increases. Recent deals included various grades from the European region, with the market expecting 15-20 cargoes to be booked in the current month, reflecting positive production sentiments despite currency fluctuations and challenges faced by steel exporters.

Recent deals

• Around 250-500 t of HMS scrap from West Africa were booked at $405/t CFR Mundra.
  
  
• Approximately 500-1,000 t of HMS scrap from the South African region were booked at $405-409/t CFR Mundra last week.
  
  
• A deal for 1,000 t of UK-origin shredded scrap was concluded at $435/t CFR Qasim.
  
  
• Around 250 t of Europe-origin turning scrap were booked at about $330/t CFR Qasim.
  
  
• A deal for 500 t of UK-origin HMS scrap was concluded at $390/t CFR Mundra.
  
  
• 2,500 t of Europe-origin shredded scrap were booked at $428/t CIF West Coast.
  
  

Price assessments

• India: UK-origin shredded scrap offers were at $433/t CFR Nhava Sheva, up $3/t.
  
  
• Pakistan: UK-origin shredded scrap offers were at $440/t CFR Qasim, up by $2/t d-o-d.
  
  
• Bangladesh: Offers for UK-origin shredded scrap were at $445/t CFR Chattogram, up by $3/t from the last offers.
  
  
• Turkiye: US-origin HMS 1&2 (80:20) prices increased by $2-4/t to $370-372/t CFR Turkiye.
  
  

Outlook: The imported ferrous scrap prices in South Asian countries, especially Pakistan and India, are expected to maintain their elevated levels due to currency devaluation and strong demand, respectively. Buyers were in the market for their next production cycles, despite moderate scrap availability potentially driving prices higher, based on the present market conditions.