South Asia: Imported ferrous scrap offers see mixed trend d-o-d
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South Asian ferrous scrap prices exhibited a mixed trend today. In India, buyers showed disinterest due to bid-offer disparities and anticipation of lower prices. In Pakistan and Bangladesh, demand slowed down amid sluggish domestic steel market conditions and cash flow issues.
Shredded scrap offers remained unchanged in India, but dropped by $3/tonne (t) in Pakistan and by $2/t in Bangladesh. US bulk HMS (80:20) offers to Turkiye remained unchanged d-o-d.
Overview
India: In India, demand for imported scrap remained slow due to bid-offer disparities and a lack of confidence among buyers in the current price trends. Shredded offers from the US and Europe were in the range of $415-425/t CFR Nhava Sheva, while buyer bids were at $410-415/t CFR.
Meanwhile, HMS (80:20) offers from West Africa and Europe were assessed at $405-410/t CFR, with buyer bids at $395-400/t CFR.
A representative from a trading company remarked, "Buying is not very exciting because of an anticipation of further price drops."
Another trader noted, "Buyers are keeping their bids lower, which is not feasible for suppliers given the rising freight rates and container constraints at major loading ports."
Pakistan: Demand for imported scrap in Pakistan has nearly dried up due to sluggish market sentiments, poor finished steel sales, and delays in letters of credit and payments. However, a few deals were reported today, indicating need-based buying. Shredded scrap offers from the UK and Europe were assessed at $415-418/t CFR Qasim.
Bangladesh: In Bangladesh, market activities remained slow due to a downturn in the domestic steel market, coupled with tight cash flows and working capital constraints. Shredded offers from the UK and Europe were assessed at $420-422/t CFR Chattogram, while HMS (80:20) offers were heard at $400-405/t CFR.
A steel mill official stated, "There is a major lull in demand from steelmakers, with regular bookings mostly from Southeast Asia and the Oceania region. US-origin offers are rare due to high lead times. Rebar prices in Chattogram are at BDT 90,000-91,000/t, yet sales remain slow. Traders are facing a dilemma due to bid-offer disparities in the market. This week, it is unlikely that suppliers will secure their offers through successful negotiations."
Another steel mill official commented, "No major bookings have been made by us recently. However, we received offers from Australia at $410/t for HMS mixed grade and $425/t for shredded, CFR Chattogram."
Turkiye: Turkish deep-sea imported ferrous scrap prices remained stable, with mills showing interest in further bookings. Offers for bulk HMS (80:20) were assessed at $380/t CFR, unchanged from the previous day. Turkish mills aimed to buy EU-origin HMS (80:20) at below $375/t CFR, but suppliers found it challenging due to the strong euro and current collection costs. HMS collection costs in the Benelux region were reported at Euro 305-315/t delivered to docks, with sufficient availability. Sellers resisted lowering prices, maintaining a minimum of $380/t CFR for US-origin HMS (80:20). Turkish mills cited no profit at this level given current rebar prices.
Price assessments
India: UK-origin shredded scrap indicatives were assessed unchanged at $418/t CFR Nhava Sheva.
Pakistan: UK-origin shredded indicatives were assessed at $416/t CFR Qasim, down by $3/t d-o-d.
Bangladesh: UK-origin shredded prices were assessed at $421/t CFR Chattogram, down by $2/t d-o-d.
Turkiye: US-origin HMS (80:20) bulk prices were assessed flat at $380/t CFR Turkiye, up by $1/t d-o-d.
