South Asia: Imported ferrous scrap offers rise by up to $3/t d-o-d
...
Today, the South Asian ferrous scrap offers experienced a slight increase due to sellers maintaining a firm stance, yet market activities remained subdued. Indian buyers refrained from the imported market due to better pricing alternatives domestically. In Pakistan, purchases slowed due to Ramadan, while in Bangladesh, LC issues limited deals.
Shredded scrap offers rose by $1/t in India, $2/t in Pakistan, and $3/t in Bangladesh. Bulk HMS (80:20) offers to Turkiye increased by $2/t d-o-d.
Overview
Indian buyers persisted in their disinterest towards imported scrap owing to the higher costs compared to the domestic scrap market. Shredded scrap from the US and Europe was quoted within the range of $400-410/t CFR, while HMS (80:20) from Europe and West Africa maintained a price range of $370-380/t CFR.
As per a trade source, "Buyers are hesitant to procure imported scrap due to the availability of more economical options in the domestic market. The impending election and the Holi festival have also influenced market sentiments."
Pakistani buyers have slowed down their procurement due to the ongoing Ramadan, resulting in not many being active in the market. Shredded scrap offers ranged between $410-415/t CFR Qasim from Europe.
A steel mill official explained, "With Ramadan in observance, demand is subdued, and time is constrained. People prioritise religious activities, leading to fewer active buyers. I've secured some scrap bookings to maintain flow for May and June, given the current lack of urgency in the market."
In Bangladesh, a few deals were heard to have been concluded recently resulting in a slight price rise. However, buyers continued to face challenges in opening LCs and furthermore domestic steel demand remained moderate resulting in very limited activities. Shredded scrap offers from the UK and Europe were heard at $408-410/t CFR Chattogram, while HMS (80:20) ranged between $390-395/t CFR.
Turkish deep-sea imported ferrous scrap prices inched up slightly despite sluggish rebar sales, with HMS (80:20) offers at $380/t CFR. Turkish mills refrained from urgent purchases due to full rebar stocks, aiming to avoid production halts during Ramadan. Unsold rebar and high scrap inventories domestically eased import pressure. Collection costs for HMS hovered at Euro 300-305/t delivered. Despite a slight Chinese iron ore price rebound, market stability relied on improved rebar sales. The weakening Turkish lira might prompt local demand growth ahead of 31 March elections. Domestic rebar sales struggled at $610-$615/t exw.
Price assessments
India: UK-origin shredded scrap indicatives were assessed at $406/t CFR Nhava Sheva, up by $1/t d-o-d.
Pakistan: UK-origin shredded scrap indicatives edged up by $2/t d-o-d to $413/t CFR Qasim.
Bangladesh: UK-origin shredded scrap prices were assessed at $410/t CFR Chattogram, up by $3/t d-o-d.
Turkiye: US-origin HMS (80:20) bulk prices were assessed at $380/t CFR Turkiye, up by $2/t.
Outlook
Imported ferrous scrap offers are likely to remain volatile with sellers holding firm, while buyers anticipate price decreases. The Indian market is expected to stay quiet this week due to the upcoming Holi festival, while Bangladesh and Pakistan may remain slow due to Ramadan and LC-related issues.
