South Asia: Imported ferrous scrap offers soften d-o-d amid bearish demand

Today, South Asian ferrous scrap offers experienced a downward trend, influenced by sluggish demand in various markets. Suppliers have embraced a holiday mood on the approaching of Christmas and New Year. In both India and Bangladesh, there were no firm offers or bids reported. Meanwhile, in Pakistan, year-end closures and tight cash flows have contributed to a slowdown in market activities.

Market overview

India: Today in India, there were no firm offers or bids due to lack of buying interest. However, last heard indicative offers for shredded scrap in containers remained at $414-418/t CFR west coast from Europe and the US.

A representative from a trading company stated, "The market in India is presently sluggish and is projected to remain so until mid-January next year. The absence of offers is linked to the holiday mood prevalent in Europe and the US as Christmas and New Year approaches."

Pakistan: In Pakistan, buying activities have decelerated due to year-end closures. Shredded scrap offers from Europe and the Middle East were noted at $425-430/t CFR Qasim.

A representative from a steel mill commented, "The market is currently inactive, both domestic and imported. Offers from Europe are currently absent, possibly due to challenges in collecting supplies and the potential impact of the Suez issue, which might be discouraging them from preparing shipments towards Asia."

Bangladesh: In Bangladesh, shredded scrap offers from Europe were heard at $435-440/t CFR Chattogram while HMS (80:20) were assessed at $415-418/t CFR. Meanwhile, bulk HMS (80:20) offers from Australia were assessed at $425-430/t CFR. However, no major activities were observed today due to the holiday mood in the US and Europe.

Turkiye: Turkish imported scrap market remained quiet; mills showed reluctance in actively seeking new cargoes. Shortsea offers from Romania observed at a minimum of $405/t CFR Turkiye and Marmara-based mill bids at $400/t.

Lower freight rates' impact on Turkish imported scrap prices not yet evident; anticipation of a drop in the second half of January. Deepsea scrap suppliers unlikely to adjust offers before Christmas holidays; anticipation of potential adjustments in the second half of January. Lack of bookings prevented confirmation of higher levels, while firm offers from recyclers resisted lower pricing.

Price assessments

India: The UK-origin shredded scrap indicatives inched down by $1/t to $415/t CFR Nhava Sheva today.

Pakistan: The UK-origin shredded scrap indicatives were kept unchanged at $428/t CFR Qasim today.

Bangladesh: The UK-origin shredded scrap prices were assessed stable at $435/t CFR Chattogram.

Turkiye: The US-origin HMS (80:20) bulk prices were assessed stable $425/t CFR Turkiye.

Outlook

In the short term, market activities for imported scrap in South Asian markets are expected to stay subdued, primarily due to the Christmas holidays and a noticeable absence of buying interest.