South Asia: Imported ferrous scrap offers rise $2-4/t d-o-d as sellers adopt firm stance
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Today, South Asian ferrous scrap offers saw a modest uptick, largely due to the firm stance adopted by sellers. However, substantial demand from major importing countries is yet to materialize. In India, sluggish demand for imported scrap persisted, with buyers remaining hesitant due to uncertainties in price trends compounded by impending elections. Pakistan's market continued to languish, with downward pressure on rebar demand prompting adjustments in steel prices. Meanwhile, major steel mills in Bangladesh proceeded cautiously, reflecting an abundance of scrap inventory.
Shredded scrap offers edged up by $2-4/t in India, Pakistan and Bangladesh. US bulk HMS (80:20) offers to Turkiye remained unchanged d-o-d.
Overview
India: In India, the demand for imported scrap remained slow today as buyers lack confidence in current price trends. Moreover, with the elections slated to start from the end of this week, buyers have adopted a cautious stance before making any significant bookings. A bid-offer disparity is also persisting in the market, leading to negotiations. Indicative offers for shredded scrap from the US and Europe were heard at $420-430/t CFR, while HMS (80:20) offers from Europe and West Africa were heard at $390-395/t CFR.
A representative from a trading company said, "Domestic scrap prices are up. However, buying is need-based. There are several reasons for the lack of confidence in the market - elections funding, on-bill sales, slow offtake of finished steel etc."
Another trade source said, "The Iran-Israel crisis has caused a significant surge in freight rates, with a minimum increase of 10%. This escalation could potentially drive up imported scrap offers in the near term."
Pakistan: The Pakistani market remained slow, with some buyers still in holiday mode. Furthermore, demand for rebars is facing downward pressure, leading steel mills to lower their prices. Indicative offers for shredded scrap from Europe were noted at approximately $430/t CFR Qasim.
A steel mill official commented, "The market hasn't picked up as anticipated after the Eid holidays last week. Consequently, demand for rebars has been lacklustre, prompting sellers to reduce prices and promote sales. Rebar sales are currently ranging from PKR 245,000-250,000/t. Additionally, there is a shortage of labour, with workers yet to return after Eid. However, we anticipate a clearer market outlook by next week."
Bangladesh: Several major Bangladeshi steel mills have adopted a wait-and-watch approach due to the abundant availability of scrap inventory. One major mill reportedly booked a bulk vessel at the beginning of this month. Consequently, no firm inquiries or bids were observed today. Indicative offers for shredded scrap from the UK/Europe were noted at $425-430/t CFR, while offers for HMS (80:20) stood at $405-410/t CFR.
Offers from Australia were heard at $420-425/t CFR for shredded scrap and $405/t CFR for HMS (80:20) scrap.
Turkiye: Turkish imported scrap prices remained unchanged, with market activity subdued despite expectations of increased demand post-Eid. Offers for HMS (80:20) imports into Turkiye were at $384/t CFR, unchanged from the previous day. Market fundamentals saw little alteration. Mills aimed to manage demand, anticipating improvement post-Eid, but no significant change has occurred yet. Turkish mill sources indicated a buyer's workable value at $380/t CFR for US/Baltic-origin HMS (80:20). EU-origin HMS (80:20) was tradable at or below $380/t CFR. HMS collection prices in the Benelux region fell to Euro 305/t delivered, down from Euro 315/t delivered the previous week. The euro's depreciation against the dollar may soften European recyclers' pricing. Despite this, optimism persists in the US domestic market, potentially keeping US offers firm.
Price assessments
India: UK-origin shredded scrap indicatives were assessed at $426/t CFR Nhava Sheva, up by $2/t d-o-d.
Pakistan: UK-origin shredded scrap indicatives were assessed at $430/t CFR Qasim, up by $3/t d-o-d.
Bangladesh: UK-origin shredded scrap prices were assessed at $428/t CFR Chattogram, up by $4/t.
Turkiye: US-origin HMS (80:20) bulk prices were assessed stable at $384/t CFR Turkiye.
Outlook
In the near term, imported ferrous scrap offers are expected to exhibit volatility, driven by the firm stance of sellers and the impact of increased freight rates stemming from the Iran-Israel crisis. However, demand has yet to show significant signs of picking up.
