South Asia: Imported ferrous scrap offers stable on limited buying interest, LC issues

Today, the South Asian ferrous scrap prices remained stable, except in Bangladesh. In India, no firm offers or bids were heard on the day due to the Guru Nanak Jayanti festival. In Pakistan, limited activities were reported due to LC issues and low-finished steel sales in the domestic market. Meanwhile, in Bangladesh, offers edged up slightly by $3/t compared to the last closing on Friday; however, market activities were found to be low as buyers continued to face financial issues.

Market overview

India: In today's Indian market, trading activities for imported scrap remained subdued due to the observance of the Guru Nanak Jayanti festival. Additionally, a mismatch between buyers' bids and sellers' asking prices persisted, leading to a lack of firm offers or bids in the market today. Bulk offers remain higher than containers following the Turkish cues.

The indicative prices for shredded scrap from Europe were last reported at $415-420/t CFR Nhava Sheva, while HMS (80:20) were heard at $395-400/t CFR.

For bulk inquiries, offers for shredded scraps were heard to be $425-430/t, while HMS offers were heard at $410-415/t CFR West Coast.

Pakistan: The demand for imported scrap in Pakistan was slow today, with difficulties arising in opening letter of credits. Additionally, limited buying interest was observed due to subdued sales of finished steel in the domestic market. Offers for shredded scrap from Europe were evaluated at $415-418/t CFR Qasim. Meanwhile, Middle East offers were heard at $425-430/t CFR Qasim.

According to a trader, "The pace of buying in Pakistan is currently slow, with complications arising from challenges related to letter of credits (LCs). Furthermore, banks are causing delays in payment releases. The domestic market is presenting a varied landscape."

In the domestic market, local scrap prices were heard at PKR 160,000-162,000/t on the cash basis, while on credit it were around PKR 170,000/t exw. Rebar prices were assessed at PKR 258,000-262,000/t exw.

Bangladesh: The demand for imported scrap in Bangladesh experienced dullness as the market appears to be less optimistic about boosting trade activities due to challenges such as currency flow issues and insufficient support from banks in processing LC documentation. This is further compounded by limited financial assistance, particularly for small buyers.

Offers for shredded scrap from Europe were assessed at $434-436/t CFR Chattogram, while that of HMS (80:20) were heard at $412-414/t CFR. PNS scrap offers stood at $445/t.

In the domestic market, local scrap prices stood at around BDT 64,000-65,000/t. Meanwhile, offers for rebars from Tier-1 mills were heard at BDT 93,000-96,000/t and Tier 2 mills were at BDT 86,000-89,000/t exw.

Turkiye: Turkish prices were observed to be stable, with dockyard payment for Turkiye at Euro 355/t ($388-390/t) CFR and HMS dockside at Euro 315/t ($345-348/t). Further stability is subject to weather conditions in Europe; currently, there are no issues, but potential snowfall could push prices to $395-400/t. Overall, the market remains unchanged, and further inquiries have not been heard, as per market sources.

Recent deals

• Around 1,000 t of shredded scraps were booked from Europe at $416/t CFR Qasim.
  
  
• About 1,000 t of HMS (80:20) scraps were sourced from Australia at $380/t CFR Chennai.
  
  
• Approximately 500 t of Australian-origin HMS (80:20) were sold at $380/t CFR Thailand.
  
  

Price assessments

India: UK-origin shredded scrap indicatives were assessed as stable at $415/t CFR Nhava Sheva.

Pakistan: UK-origin shredded scrap indicatives were flat to $417/t CFR Qasim today.

Bangladesh: UK-origin shredded scrap prices edged up by $3/t to $435/t CFR Chattogram today.

Turkiye: US-origin HMS (80:20) bulk prices stood at $390/t CFR Turkiye, unchanged d-o-d.

Outlook

In the near term, the outlook for imported ferrous scrap is quite uncertain. Suppliers, including those from the EU and the US, are maintaining steady offers as they prepare for a long winter break starting in December. However, the appetite for imported scrap across South Asian markets is currently low and expected to continue for the next week; prices might see some hike.