South Asia: Imported ferrous scrap offers see mixed trend; Bangladesh books bulk cargo
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Today's assessment of the South Asian ferrous scrap market revealed a prevailing sense of sluggishness. Indian buyers exhibited caution, hesitating to commit to large-volume purchases amid expected drops in offers. Similarly, Pakistani demand remained subdued despite domestic shortages, influenced by buyer hesitancy stemming from volatility in current offers. Meanwhile, Bangladesh experienced moderate market activity, with reports of mid-level bulk scrap cargo secured from Japan.
In terms of price movements, shredded scrap offers decreased by $1/t in India, and increased by $2/t in Pakistan, while remaining unchanged in Bangladesh. Additionally, US bulk HMS (80:20) offers to Turkiye saw a slight increase of $1/t d-o-d.
Overview
India: In India, buyers remained cautious about booking large volumes of imported scrap, anticipating a potential drop in offers. Market feedback indicated that only need-based purchases were happening, with others adopting a wait-and-see approach, securing deals available at lower prices. Offers for shredded scrap from the UK, Europe, and the US were assessed at $415-418/t CFR Nhava Sheva, while HMS (80:20) offers were at $395-400/t CFR.
Offers for hand-loaded HMS from Kuwait and Bahrain were heard at $410-415/t CFR West Coast India, and HMS (80:20) from Australia was assessed at $395-400/t CFR Chennai.
A steel mill official said, "For imports, we bought small quantities and mostly took a wait-and-watch approach as we expected prices to drop." Another steel mill official commented, "Scrap supply was tight in the domestic market, primarily due to tight cash flows amidst elections. We are waiting for import offers to drop before booking more imported scrap. Domestic buying continues regularly, with production levels around 90%."
Pakistan: In Pakistan, the demand for imported scrap remained slow despite shortages in the domestic market. Buyers lacked confidence due to the volatility in offers. Shredded scrap offers from the UK and Europe were heard in the range of $415-420/t CFR, with a few suppliers quoting $425/t CFR, but no deals were recently concluded.
In the domestic market, local scrap prices were assessed at PKR 150,000/t, while rebars were reported at PKR 255,000-257,000/t.
A few steel mills were considering a hike in rebar prices by PKR 4,000-5,000/t in the coming week due to the domestic scrap shortage and delays in the arrival of previously booked imported material. Additionally, a few steel mills, such as Agha, Naveena, and Faizan, suspended rebar sales effective from 28-30 May until further notice.
Bangladesh: Bangladeshi buyers are showing moderate interest in imported scrap due to low demand from the downstream sector. Indicative offers for shredded scrap from the UK and Europe were assessed at $420-422/t CFR Chattogram, while HMS (80:20) was at $400-405/t CFR.
A steel mill in Bangladesh reportedly booked a bulk scrap cargo from Japan, comprising around 10,000-12,000 t of HMS (80:20) at $400-405/t CFR.
Turkiye: Turkish deepsea imported ferrous scrap prices rose slightly, driven by recent deals. Offers for US-origin HMS (80:20) were assessed at $379/t CFR, up by $1/t d-o-d. Market insiders noted that European mills could not lower prices further due to high collection costs, around Euro 300-315/t. Additionally, billet prices remained elevated, with Turkish imports at $515/t CFR and CIS export billet at $495/t FOB Black Sea. Despite slight declines, billet prices are still under pressure from low buying interest. The tight scrap supply and high collection costs continue to influence market dynamics.
Price assessments
India: UK-origin shredded scrap indicatives were assessed at $416/t CFR Nhava Sheva, down by $1/t d-o-d.
Pakistan: UK-origin shredded indicatives were assessed d-o-d at $419/t CFR Qasim, up by $2/t d-o-d.
Bangladesh: UK-origin shredded prices were assessed stable at $420/t CFR Chattogram.
Turkiye: US-origin HMS (80:20) bulk prices rose up by $1/t to $379/t CFR Turkiye.
