South Asia: Imported ferrous scrap offers slide on dull demand across markets

The South Asian scrap markets faced a challenging environment, with buyers across India, Pakistan, and Bangladesh showing limited interest due to ongoing price volatility and economic uncertainties. In India, buyers hesitated to engage with imported scrap, finding domestic options more cost-effective and anticipating further price drops.

Pakistan's market mirrored this cautious sentiment, as buyers adopted a wait-and-see approach amidst a slowdown in the steel sector.

In Bangladesh, sluggish trading and sharp price declines were driven by political instability and global market trends. Turkiye also experienced downward pressure, with buyers holding back as iron ore prices continued to fall.

Overview

India: Indian buyers remained on the sidelines, showing little interest in imported scrap as it was still more expensive than domestic options. Influenced by global trends, buyers lacked confidence at the prevailing price levels and anticipated further drops in offers.

One southern India trader commented, "Current offers for shredded scrap from the US and Europe range between $395/t and $410/t. The market isn't favorable for suppliers, and prices continue to decline. While the market is volatile, some buyers are securing small deals in anticipation of tighter supply after August."

Indicative offers for shredded scrap from the US and UK/Europe were assessed at $400-405/t CFR Nhava Sheva, while buyers aimed below $400/t levels. HMS (80:20) offers were heard between $375-380/t CFR.

Pakistan: Pakistani buyers adopted a wait-and-see approach due to volatility in offers and a slowdown in the domestic steel market. Indicative offers for shredded scrap from the UK and Europe were assessed at $395-405/t CFR Qasim.

Notably, as per market participants a buyers has bought shredded scrap from the UK/Europe at $397/t CFR Qasim, however the exact quantity could not be verified at the time of publishing this report.

Bangladesh: The Bangladeshi imported scrap market experienced sluggish trading today, with prices dropping sharply due to several factors. The local market sentiment remained weak following Sheikh Hasina's exile last week, leading to a cash supply drought and a global downturn in scrap prices. The political and economic uncertainty has also caused suppliers to rethink before re entering the market.

Indicative offers for shredded scrap from the UK/Europe were at $415-420/t CFR Chattogram, while HMS (80:20) offers were assessed at $400-405/t CFR.

Turkiye: Turkish imported scrap market witnessed a downfall following a recent European deal. Buyers held back, expecting lower prices in the near term, while sellers remained hesitant to offer discounts. Offers for HMS (80:20) from the US was assessed at $371/t CFR. The market sentiment was further weakened by continued drops in iron ore prices, adding pressure on scrap prices. A few shortsea scrap deals were made, but market participants were cautious, reflecting uncertainty in the market.

Notably, a Europe-origin bulk scrap cargo was heard to have been booked by a Turkish mill comprising HMS (80:20) at $365/t CFR Turkiye.

Price assessments

India: UK-origin shredded scrap indicatives were assessed at $403/t CFR Nhava Sheva, down by $4/t d-o-d.

Pakistan: UK-origin shredded indicatives dropped by $7/t to $403/t CFR Qasim.

Bangladesh: UK-origin shredded prices were assessed at $416/t CFR Chattogram, down by $4/t d-o-d.

Turkiye: US-origin HMS (80:20) bulk prices were at $371/t CFR Turkiye, down by $3/t d-o-d.