South Asia: Imported ferrous scrap offers stable d-o-d on weak buying

The South Asian ferrous scrap market remained stable today. Indian buyers kept procuring locally due to cheaper domestic scrap prices versus imported. In Pakistan, buyers opted to procure on need basis. Meanwhile, in Bangladesh buyers were in wait-and-see mode due to LC opening issues.

Shredded scrap offers remained unchanged on d-o-d basis today.

Market overview

India: The demand for imported scrap in India was observed limited as buyers decided to procure scrap from the domestic market on cheaper availability. Indicative offers for shredded scrap from Europe were heard at $405-410/t CFR Nhava Sheva, while HMS (80:20) scraps were reported at $385-390/t CFR.

A source at a steel mill said, "Festivities are approaching, as a result of which trades are limited. Moreover, local procurement of scrap is easy and cheap. So, at the moment, we are focused on domestic procurement instead of imports."

A trader highlighted, "Scrap prices are going up because suppliers are capitalising on the demand before the holiday period to take advantage of the situation due to hectic buying from Turkiye."

Pakistan: The demand for imported scrap remained moderate in Pakistan. Shredded scrap offers from Europe were assessed in the range of $410-415/t CFR Qasim. Workable levels, as per buyers, were assessed at around $408-410/t CFR.

Offers from the Middle East were heard at $385/t CFR for HMS and $415/t for fabricated material.

A trader said, "Although the prices have gone up, real demand is moderate in end products. Buyers are procuring as per need basis."

Bangladesh: In Bangladesh, market activities remained limited as buyers have adopted wait-and-see stance due to LC-related issues. Moreover, due to liquidity issues, Bangladeshi mills were unable to procure from the monthly Japanese Kanto scrap export tender which concluded today.

Offers for shredded scrap from Europe were assessed at $425-428/t CFR Chattogram, while HMS (80:20) scraps were heard at $408-410/t CFR.

PNS scrap offers from Europe hovered at $435-440/t CFR, while busheling scrap from Malaysia stood at $440/t CFR.

Turkiye: Turkish deep-sea import scrap prices increased on fresh deal activity, as market participants expect further price upside in the near term. US flat steel demand has improved due to the end of the United Auto Workers (UAW) strikes, and prices are increasing daily. This is reducing pressure on US recyclers to export scrap. This means that US recyclers are less likely to export scrap because they can sell it domestically for a higher price. Turkish buyers' sentiment reflects minimal demand for finished steel. The local market is not responding to scrap prices as of today. Turkish buyers may be concerned about future supply or optimistic about future demand for finished steel, perhaps influenced by sentiments in China.

Recent deals

• Around 500 t of turning boring scrap was booked from Europe at $372/t CFR west coast India.
  
  
• Approximately, 500 t of HMS 90:10 scrap from Chile was procured at $400/t CFR west coast India.
  
  
• About 1,000 t of HMS 1 from Kuwait was sold at $405/t CFR west coast India.
  
  

Price assessments

India: UK-origin shredded scrap offers were stable at $408/t CFR Nhava Sheva today.

Pakistan: UK-origin shredded scrap offers were unchanged at $412/t CFR Qasim today.

Bangladesh: Offers for UK-origin shredded scrap were flat at $425/t CFR Chattogram today.

Turkiye: US-origin HMS 1&2 (80:20) prices edged up by $2/t to $374/t CFR Turkiye today.

Outlook

Imported ferrous scrap offers are likely to remain range-bound for a couple of days due to dull demand in India, because of cheaper availability at home and on bid-offer disparity coupled with the festive mood. In Pakistan and Bangladesh too, market activities are likely to remain limited due to low sales in domestic downstream sectors and LC-related crisis.