South Asia: Imported ferrous scrap offers show mixed trend amid slow trades

The South Asian ferrous scrap market witnessed a mixed trend d-o-d. In India, demand for imported scrap remains moderate although suppliers were testing the market with slightly lower offers to reduce the gap between bids and offer prices. In Pakistan, buyers were relatively sluggish as their rebar market was not performing well. In Bangladesh, the market continued to witness slow trends because of recent bad weather and cyclone effects, with port activities remaining partially active and imported scrap offers remaining range-bound.

Shredded scrap offers declined in India and Bangladesh, while offers inched up by $3/t in Pakistan. Bulk HMS (80:20) offers from the US edged down by $1/t CFR Turkiye.

Overview

India: In India, buyers remain active with regular bookings although fresh offers from Europe and the US declined by $2-3/t. Offers for shredded scrap from the US and Europe are currently assessed at $415-417/t CFR, while buyers are quoting workable levels at around $410-412/t CFR.

According to a major trading house representative, "Shredded offers from Australia dominate the market along the south coast (Chennai), with booking activity showing a slowdown this week. For the west coast, container deals for shredded could be bought at around $415-$416/t."

Regarding bulk purchases, the representative stated, "Offers from Australia are at $420-$425/t for PNS and $410/t for HMS (80:20). Customers, however, are expecting prices to drop below $400/t for HMS (80:20) and hover around $410/t for PNS."

According to a buyer source, "For container shipments, workable prices are approximately $415/t CFR for EU/UK shredded, $417-$418/t CFR for Australian shredded, and $400/t CFR for European HMS (80:20) CFR Nhava Sheva/Mundra."

Pakistan: Pakistani buyers remained muted with comparatively lower demand in the domestic steel market although offers for shredded scrap from Europe increased to $418-420/t CFR Qasim.

According to a major steel mill source, "Shredded offers are priced at $420-424/t. Suppliers are particularly active in India and Bangladesh where payment issues are less critical. The lacklustre performance of domestic rebar has kept manufacturers quiet."

Bangladesh: Bangladeshi steelmakers maintained their regular bookings with streamlined offers predominantly from Far East Asia and Australia, with a few offers from the UAE.

According to a major steel mill source, last week, HMS (80:20) was heard at $404-408/t CFR Chattogram, while $420/t for shredded is considered appropriate. Slow activities are anticipated in Chattogram due to the impact on port operations of cyclone Remal. Operations at Chittagong Port have resumed after downgrading the security alert, with vessels being returned to the jetties and loading and unloading of cargoes partially resuming.

Turkiye: Turkish imported ferrous scrap prices edged lower d-o-d as US ferrous scrap saw a bearish trading environment with range-bound inquiries from participants. Over the weekend, UK and Baltic-origin deals for HMS (80:20) were heard in the range of $373.5 to $377/t CFR. Turkish export rebar sales declined to $575-580/t FOB, down $5 from the previous week.

Price assessments

India: UK-origin shredded scrap indicatives were assessed at $416/t CFR Nhava Sheva down by $2/t from the last closing.

Pakistan: UK-origin shredded indicatives were assessed at $418/t CFR Qasim rose by $3/t from the last closing

Bangladesh: UK-origin shredded prices were assessed at $419/t CFR Chattogram, down by $1/t from last closing.

Turkiye: US-origin HMS (80:20) bulk prices were assessed at $378/t CFR Turkiye, down by $1/t from last closing.