South Asia: Imported ferrous scrap offers rise d-o-d on improved demand

The South Asian ferrous scrap market witnessed increased offers from Europe amid improved demand from the Indian market. Offers for other markets like Bangladesh and Pakistan witnessed moderate changes. Turkiye, on the other hand, remains stagnant without any fresh deals heard for the day.

Market overview

India: The imported ferrous scrap market saw a slight uptick today on improved demand. Some bulk vessels have been heard to have arrived at Paradip port from Venezuela and a few more are expected to arrive at Chennai and Vizag. In containers around 25,000 tonnes (t) of HMS, turning, boring, and shredded scrap have been booked at the $390-440/t range on CFR Chennai.

Offers today for containerised shredded scrap from UK/Europe edged up to $440/t in comparison with $428-430/t CFR Nhava Sheva seen on 25 August. Meanwhile, HMS (80:20) is being heard at around $415-420/t CFR Nhava Sheva from the UK/Europe.

In addition, market participants are further expecting an increase in offers as demand for scrap in the domestic market is likely to improve on improved semi-finished sales.

Pakistan: The imported ferrous scrap market in Pakistan is yet to pick up as opening of letters of credit (LCs) are still challenging. However, a deal for PNS scrap of UAE-origin is being heard booked at $455/t on CFR Qasim.

Offers for containerised shredded scrap from UK/Europe are being heard at around $432-436/t CFR Qasim.

In the domestic market, steel majors like Amreli, Faizan, Agha, Naveena, and Moiz have raised rebar prices by up to PKR 10,000-12,000/t ($33-40/t), effective from today. The updated rebar price (grade 60) is around PKR 287,500/t ($947/t) for 9.5/10 and 12mm, and PKR 285,500 ($940/t) for 16mm and above. This hike is for higher manufacturing costs due to rising raw material prices and weakening PKR against the USD.

Moreover, local scrap prices rose by PKR 8,000/t ($26/t) to PKR 190,000/t ($626/t) today as compared to PKR 182,000/t ($599/t) a week ago.

Bangladesh: The imported ferrous scrap market in Bangladesh is slower than expectations. Offers for shredded scrap from the UK region are assessed at around $436-438/t CFR and for UK-origin HMS(80:20) indicatives heard between $420/t for the day.

About 500-1,000 t of shredded and NTP scrap, are being heard booked at $435/t and $440/t respectively, from the US on CFR Chattogram.

Turkiye: Mills are attempting to exert downward pressure on scrap prices, yet recyclers are pushing back, citing their inability to collect at reduced rates. Market participants are also engaged in ongoing conversations regarding the consequences of the recent rise in interest rates. Despite Turkish mills' efforts to maintain stable scrap prices in order to expand their margins, sales of finished steel, both in domestic and export markets, remain sluggish. Notably, HMS (80:20) bulk offers from the US have remained steady at $374/t CFR Turkiye in recent deals.

Recent deals

• Around 2,000 tonnes (t) of shredded and HMS scrap from Europe were booked at $435/t and $420/t CFR Chennai, respectively.
  
  
• Approximately 300 t of HMS 1 Bahrain-Middle East origin were booked at $430 CFR Nhava Sheva.
  
  
• Around 500-1,000 t of HMS (90:10) from Chile/Puerto Rico were booked at $410/t CFR Chattogram.
  
  
• About 500-1,000 t of busheling scrap concluded at $450/t from Taiwan on CFR Chattogram.
  
  
• Around 1,000 t of busheling scrap from Brazil were booked at $455/t on CFR Mundra.
  
  
• Approximately 400 t of US-origin cast iron scrap were booked at $485/t on CFR Chennai.
  
  

Price assessments

• India: UK-origin shredded scrap offers were at $434/t CFR Nhava Sheva, up $4/t against last assessed offers on Friday.
  
  
• Pakistan: UK-origin shredded scrap offers were at $435/t CFR Qasim, rising by $3/t d-o-d.
  
  
• Bangladesh: Offers for UK-origin shredded scrap were at $436/t CFR Chattogram, unchanged against last assessed offers.
  
  
• Turkiye: US-origin HMS 1&2 (80:20) prices were stable at $374/t CFR Turkiye, stable d-o-d.
  
  

Outlook

The imported ferrous scrap market continued to remain volatile as participants in Indian market might see some sharp hike in the upcoming days due to anticipated demand from buyers. Meanwhile, Bangladesh and Pakistan might continue small-scale bookings amid problems in LC openings until some relaxations are announced from central banks of these countries.