South Asia: Imported ferrous scrap offers unchanged d-o-d amid limited buying

The South Asian ferrous scrap market continued to remain slow today. In India, stability persists with active procurement driven by improved sentiments in the domestic steel sector. Meanwhile, in Pakistan, subdued demand stems from sluggish steel markets and financial constraints. Bangladesh is witnessing scaled-back procurement amid bid-offer disparities and domestic market slowdown.

Shredded scrap offers remained unchanged in India and Pakistan, while prices edged down by $1/t in Bangladesh. US bulk HMS (80:20) offers to Turkiye remained unchanged d-o-d.

Overview

India: The stability in demand for imported scrap in India persisted as buyers continued to actively secure bookings, driven by improved sentiments in the domestic steel market. Shredded scrap from the US and Europe was reportedly priced at approximately $420-425/t CFR, while HMS (80:20) from West Africa and Europe stood at around $400-410/t CFR.

Pakistan: In Pakistan, the demand for imported scrap remained subdued due to sluggish steel demand and financial limitations. Offers for shredded scrap from the UK/Europe were heard at $420-425/t CFR Qasim.

According to a trader source, "The market in Pakistan is currently very slow. The primary issue is LC problems; people have limited LC availability, and the economic conditions are not favourable. However, things are expected to improve after the addition of the IMF programme. Market offers for EU shredded scrap are around $420-425/t CFR from suppliers, while HMS is offered at $395-400/t. However, some suppliers have managed to sell at $410/t, indicating the current dynamics of demand and supply."

Bangladesh: Bangladeshi buyers have scaled back their procurement of imported scrap due to a significant gap between bids and offers, compounded by a slowdown in the domestic steel market. Shredded scrap offers from the UK/Europe were in the range of $420-425/t CFR, while HMS (80:20) was priced at $405-410/t CFR.

Bulk HMS (80:20) offers from the US were reported at $400-405/t CFR, and H2 scrap offers from Japan stood at $395-400/t CFR.

According to a trader, "Steel demand remains below expectations, resulting in sluggish sales and keeping steelmakers on the sidelines to avoid procuring raw materials at high costs when finished products are not performing well."

A steel mill official stated, "Negotiations are going on with US yards for bulk bookings, but chances are slim due to bid-offer disparities, with suppliers focusing more on fulfilling Turkish mills' requirements."

Turkiye: Turkish deepsea imported ferrous scrap prices remained stable due to minimal shifts in market dynamics. Offers for HMS (80:20) scraps held steady at $385/t CFR, unchanged from the previous day. Similarly, indicative tradable values for US/Baltic-origin HMS (80:20) were observed at $385/t CFR. According to sources, sellers appeared satisfied with prices around $384/t CFR, foreseeing a slowdown in mill purchases ahead of the Chinese holiday period. However, concerns were raised about reduced bargaining power for mills due to increased scrap consumption from new capacities. A Baltic recycler suggested market balance at current levels, while a UK trader noted differing expectations between suppliers and mills, predicting delays in June shipments purchases by mills.

Price assessments

India: UK-origin shredded scrap indicatives were assessed at $425/t CFR Nhava Sheva, unchanged d-o-d.

Pakistan: UK-origin shredded indicatives were assessed unchanged at $425/t CFR Qasim, d-o-d.

Bangladesh: UK-origin shredded prices were assessed at $423/t CFR Chattogram, down by $1/t d-o-d.

Turkiye: US-origin HMS (80:20) bulk prices were assessed at $385/t CFR Turkiye, stable d-o-d.