South Asia: Imported ferrous scrap offers see mixed trend d-o-d with slow inquiries

Today, South Asian ferrous scrap prices displayed a mixed trend. In India, buyers opted for a cautious approach, witnessing a notable shift towards high-sea sales. In Pakistan, activities were restrained but driven by demand. Meanwhile, the Bangladeshi market slowed down, impacted by political unrest post-elections.

Shredded scrap offers observed a decline of $3-5/t in Bangladesh and India, while remaining unchanged in Pakistan. Turkiye's Bulk HMS (80:20) offers from the US saw a slight increase of $2/t d-o-d.

Market overview

India: Today, the demand for imported scrap in India remained low due to a lack of buying interest. European shredded scrap was offered at $415-420/t CFR Nhava Sheva, while HMS (80:20) was priced at $395-400/t CFR. Buyers showed a preference for high-sea sales, with shredded offers at $405/t CFR, but bids fell below these levels.

Some prefer materials from East Africa and Australia for swift shipments, but worries about elevated container freight rates persist. Offers for containerised HMS scraps from Australia stood at $412-416/t CFR Chennai and Vizag, with moderate interest from buyers.

A trade source remarked, "India's steel market is grappling with oversupply from new plants, impacting prices. Despite steady steel demand, domestic HRC and rebar prices have dropped, especially in infrastructure projects."

Pakistan:Today, the demand for imported scrap in Pakistan was moderate, with a noticeable shift in preference towards Middle East cargoes. This shift was attributed to the uncertainty in offers from Europe, heightened by the Red Sea crisis, and the appeal of quicker shipments from the Middle East. Shredded scrap offers from Europe were approximately $440/t CFR Qasim, while offers from the Middle East ranged from $440-445/t CFR Qasim.

A representative from a trading company commented, "Currently, we do not have any new offers. We are awaiting stability in terms of Red Sea freight surcharges. We want to avoid a situation where additional surcharges are introduced after a transaction, leading to a negative margin."

Bangladesh: Today, the Bangladeshi market experienced a sluggish pace, which is attributed to political unrest and limited buying interest from downstream buyers. Shredded scrap offers were reported at $440-445/t CFR Chattogram, while HMS (80:20) was priced at $415-420/t CFR.

In the domestic market, rebar prices were heard at BDT 87,000-90,000/t exw-Dhaka, while ship-breaking plates were at BDT 75,500/t and billets were at BDT 77,000/t exw.

Turkiye:Turkish-imported scrap prices edged up, reaching $425/t CFR for HMS (80:20) with mixed market sentiment. Sellers expressed bullish views, citing higher collection costs and limited availability of HMS due to adverse weather conditions in Europe and the US.

Turkish mills, however, are cautious, stating that prices could decline in the near term as rebar sales slow. Recent declines in iron ore prices also contribute to the uncertainty. Despite this, sell-side participants remained positive, highlighting a shortage of scrap at ports, possibly leading to stable or higher price trend in the coming days.

Recent deals

About 1,000 t of HMS 1 (hand-loaded) was booked from Peru at $428/t CFR Chattogram.

Price assessments

India: UK-origin shredded scrap indicatives were down by $5/t to $420/t CFR Nhava Sheva.

Pakistan: UK-origin shredded scrap indicatives were flat at $440/t CFR Qasim.

Bangladesh: UK-origin shredded scrap prices were assessed at $442/t CFR Chattogram, down by $3/t d-o-d.

Turkiye: US-origin HMS (80:20) bulk prices were assessed at $425/t CFR Turkiye, up by $2/t d-o-d.

Outlook

In the near term, the imported scrap market is expected to remain uncertain, primarily due to a lack of buying interest in relation to current offers.