South Asia: Imported ferrous scrap offers stay largely stable d-o-d
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- India sees moderate buyer interest, market optimism
- Turkiye anticipates short-sea bookings next week
The South Asian and Turkish scrap markets displayed varied dynamics during the New Year holidays. In India, moderate buyer interest and optimism about restocking were seen, while Pakistan's market remained subdued due to low demand and cash flow challenges. Bangladesh showed steady sentiments, supported by local demand and improved banking operations, though dollar volatility impacted activity. Meanwhile, Turkiye's market anticipates some movement next week, with mills likely to focus on short-sea bookings for late January.
Offers for shredded scrap remained unchanged d-o-d in India and Pakistan while edging up marginally by $1/t in Bangladesh. US bulk HMS (80:20) offers to Turkiye remained stable today.
Overview
India: Indian buyers showed moderate interest amid limited supplier offers, as many yards remain closed for New Year holidays and are expected to resume operations from 6 January. However, buyer sentiment has improved compared to December, driven by optimism around restocking demand for the upcoming production cycle. Indicative offers for shredded scrap from the US and UK/Europe stood at $385-390/t CFR Nhava Sheva, while HMS (80:20) offers were at $360-365/t CFR from the UK/Europe and $365-375/t CFR from West Africa, depending on loading conditions.
Shredded scrap from Australia/Malaysia to Chennai was offered at $375/t CFR, with sellers quoting $377-378/t CFR and buyers showing limited interest at $370/t CFR. African LMS bales were priced at $325-330/t, with a deal confirmed at $325/t for 500 t to Chennai, expected to arrive by late January or early February.
Turning scrap was sold at $330-335/t to Chennai from the Philippines, Thailand, and Malaysia, with shipments of 500 t each.
Pakistan: Pakistan's imported scrap market remained subdued, influenced by New Year holidays, low demand, and persistent cash flow challenges. Buyers maintained a cautious stance, resulting in limited transactions and slow payment cycles. Offers for UK-origin shredded scrap were reported at $390-395/t CFR Qasim, UAE HMS 80:20 at $375/t CFR, and UAE fabrication scrap at $390/t CFR.
Local scrap prices hovered at PKR 140,000-148,000/t ex-factory, while rebars were priced between PKR 235,000-245,000/t. The overall market reflected a holiday mood, with minimal activity and muted sentiment.
A steel mill official remarked, "The market is quiet; holidays are ongoing," underscoring the lull in activity.
While some movement is anticipated next week, buyers are expected to resist any upward price adjustments, keeping the market cautious and stable in the near term.
Bangladesh: Bangladesh's imported scrap market maintained steady sentiment, supported by stable local demand and improved banking operations. Domestic scrap prices ranged between BDT 50,000-55,000/t, while rebar prices held firm at BDT 80,000-85,000/t, reflecting robust demand from construction projects and government initiatives.
However, year-end financial slowdown and dollar volatility tempered market activity. Buyers remained cautious but optimistic about improved momentum next week as banking processes normalise and construction activity accelerates.
Turkiye: The Turkish market is expected to see some activity next week, with a few mills likely to secure bookings for late January, favouring short-sea options. Buyers remain cautious, with bids capped at $340/t for EU material and $345/t for US material. Scrap collection and bookings are anticipated to pick up after 6 January as participants return from the holiday break.
Price assessments
India: UK-origin shredded indicatives were assessed stable d-o-d at $387/t CFR Nhava Sheva.
Pakistan: UK-origin shredded indicatives were assessed at $393/t CFR Qasim, unchanged d-o-d.
Bangladesh: UK-origin shredded edged up by $1/t d-o-d at $395/t CFR Chattogram.
Turkiye: US-origin HMS (80:20) bulk was assessed stable d-o-d at $346/t CFR Turkiye.
