South Asia: Imported ferrous scrap offers rise on restocking demand

• Pakistan's imported scrap market sees higher offers
  
  
• EU-origin scrap deals at higher tags support Turkish prices
  
  

The South Asian imported ferrous scrap markets were relatively active today, with slight upward movement and a general bullish sentiment prior to the year-end closure and restocking activities.

In India, EU-origin HMS (80:20) scrap was offered at $360-365/t, but buying activity remained cautious. Pakistan saw a slight increase, with UK shredded scrap priced at $390/t. Bangladesh's market faced pressure from LC issues and minimal trades, while Turkiye's market strengthened due to restocking demand.

India: The imported scrap market remained active d-o-d, showing a slight upward movement with a generally bullish sentiment as the year-end approaches. Prices are expected to stay elevated in the coming quarter, reflecting optimism in market conditions.

Offers for US-origin HMS (80:20) scrap are between $360-365/t. However, Indian buyers are exercising caution due to uncertainty about short-term market conditions, resulting in limited buying activity. Many market participants are opting to delay purchases, awaiting potential price adjustments or clearer market trends.

Pakistan: The Pakistani imported scrap market showed a slight increase. The current workable levels for imported shredded scrap from the UK are at $390/t. Additionally, rebar is priced at PKR 240,000-242,000/t, billet at PKR 210,000/t, and domestic scrap at PKR 140,000/t.

Shredded scrap from the UAE is being offered at $395-398/t CFR Qasim. While the material flow remains slow, workable levels can still be achieved at around $392-394/t.

As per a UAE scrap exporter, HMS and PNS mix are being offered at $400-405/t, though there is less interest from buyers at these price levels.

A total of 2,000 t of UK/EU shredded scrap was sold at $390/t CFR Qasim.

Bangladesh: Buying sentiment in Bangladesh remains below average, with domestic demand at moderate levels. However, the market is facing pressure due to LC-related issues following the closure of several major banks in recent months, which has limited fresh buying activity and created uncertainty.

Sellers from Hong Kong and Dubai are increasingly focusing on Bangladesh, taking advantage of the moderate demand and competitive pricing. With weaker buying activity in India, Bangladesh is becoming a more attractive market for sellers looking to export their material.

As per a Dhaka-based importers, market is cautious, with offers coming in from Brazil for HMS 1 at $390-395/t CFR Chattogram, while busheling scrap from Malaysia heard at $410-415/t CFR. PNS from Hong Kong is being offered at $400-405/t CFR.

Turkiye: The Turkish imported scrap market strengthened this week, driven by mills' restocking demand and deals concluded at elevated levels. A trader indicated that deep-sea scrap prices are likely to rise further in the short term as mills continue to replenish inventories.

Despite shipping disruptions on the Mosel River, European recyclers reported no immediate impact on operations. EU-origin HMS (80:20) was cheaper, with prices ranging between $342-$349.5/t CFR, compared to US-origin material at $350-$356/t CFR. Baltic-origin scrap stood at $348-$354/t CFR.

A Turkish mill source expects EU-based recyclers to dominate deep-sea supply this week, while US sellers remain on the sidelines. US suppliers find Turkish prices too low and are targeting a minimum of $360/t CFR for HMS (80:20), following the recent price rise driven by EU-origin deals.

Recently a couple of deals were confirmed, including two mills in the Mediterranean region that secured EU-origin bulk scrap cargos at $349.5/t for HMS (80:20) on a CFR basis.

Price assessments

India: UK-origin shredded indicatives were edged up by $6/t d-o-d at $387/t CFR Nhava Sheva.

Pakistan: UK-origin shredded indicatives edged up by $3/t d-o-d to $389/t CFR Qasim.

Bangladesh: UK-origin shredded was assessed at $392/t CFR Chattogram, up by $5/t d-o-d.

Turkiye: US-origin HMS (80:20) bulk was assessed at $354/t CFR Turkiye, up by $6/t d-o-d.