South Asia: Imported ferrous scrap offers rise by $4/t despite limited inquiries

Today, South Asian ferrous scrap offers experienced a slight increase due to firm stance from sellers, yet market activities remained sluggish overall. In India, subdued sentiment persisted as buyers exercised caution due to a sudden uptick in domestic scrap prices, leading to some hesitancy. Pakistan's market remained slow after Eid, while Bangladesh resumed operations but without any notable activity.

Shredded scrap offers rose by $4/tonne (t) in India, and by $1/t in Pakistan, and $2/t in Bangladesh. However, US bulk HMS (80:20) offers to Turkiye remained unchanged from the last closing on Friday, despite challenges in sales to Yemen and weakening rebar exports.

Overview

India: Today, market activities in India remained subdued as buyers exercised caution in response to a sudden increase in domestic scrap prices. According to market feedback, if domestic scrap prices continue to rise, buyers may turn to imported scrap. However, significant sales were not seen due to a lack of confidence in terms of price directions.

Shredded scrap offers have experienced a slight increase, ranging from $425-430/t CFR from both the US and Europe. Meanwhile, HMS (80:20) offers from Europe and West Africa are priced at $385-395/t CFR.

A representative from a trading company commented, "Indian buyers of imported scrap are still in a review mode. Considering the market fluctuations, their new asking prices are $385-390/t for EU HMS (80:20) and $415-420/t for EU shredded. West African HMS prices remained at $380-390/t for both the west coast and south-eastern coast of India. Domestic steel prices are influencing future scrap bookings, resulting in moderate activity and minimal bookings from importers. Over the past few weeks, sharp fluctuations in the international market have hindered our ability to secure the necessary volume."

Pakistan: Today, the market in Pakistan resumed activities following the Eid holidays, with no firm offers or bids being heard. Shredded scrap offers from the UK/Europe were observed at $425-430/t CFR.

A steel mill official said, "The market is slow. With mills being closed for the past 15 days, no scrap was purchased, and rebar sales were sluggish. This week, we'll adopt a wait-and-see approach and monitor the trend before making any purchases next week."

In the domestic market, local scrap prices were assessed at PKR 155,000-160,000/t, while rebars were priced at PKR 250,000-255,000/t ex-works.

Bangladesh: The Bangladeshi market also resumed operations today, although no significant activities were reported as some buyers were still in a holiday mood. More clarity is anticipated in the coming days. Shredded scrap offers from the UK/Europe were evaluated at $420-425/t CFR, while HMS (80:20) stood at $400-408/t CFR.

Turkiye: Turkish imported scrap prices held steady amid limited activity because of the Eid holidays. US bulk HMS (80:20) offers stood at $384/t CFR Turkiye. Sales to Yemen faced challenges, while rebar exports weakened. Export restrictions to Israel could impact prices. Baltic HMS availability rose, with stable collection costs at Euro 315/t delivered. Euro depreciation might lead to lower dollar-denominated offers. UK recyclers expect increased post-Eid buyer interest despite slower flows.

Price assessments

India: UK-origin shredded scrap indicatives were assessed at $424/t CFR Nhava Sheva, up by $4/t compared to the last closing on Friday.

Pakistan: UK-origin shredded scrap indicatives were assessed at $427/t CFR Qasim, up by $1/t compared to the last closing.

Bangladesh: UK-origin shredded scrap prices were assessed at $424/t CFR Chattogram, up by $2/t.

Turkiye: US-origin HMS (80:20) bulk prices were assessed stable at $384/t CFR Turkiye.