South Asia: Imported ferrous scrap offers under pressure, drop by $10/t d-o-d
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The South Asian ferrous scrap market continued to remain under pressure. Indian buyers were drawn to discounted scrap shipments expected in March and April, while Pakistani counterparts anticipate further offer decreases with caution. Bangladeshi buyers maintain activity in the face of favorable market conditions. However, Turkish imported scrap prices encounter downward pressure due to diminished collection costs and subdued local mill demand.
Shredded scrap offers dropped by $10/t in Pakistan, $2/t in India, and $3/t in Bangladesh. US bulk HMS (80:20) offers to Turkiye dropped by $2/t d-o-d.
Overview
The imported ferrous scrap market in India remained sluggish, with buyers showing a preference for purchasing scraps scheduled to arrive in March and April at reduced offer prices. Reports indicated that shredded scrap from Europe and the US was priced between $405-410/t CFR, while HMS (80:20) was quoted at $370-380/t CFR from Europe/West Africa.
A representative from a trading company commented, "There's a significant amount of distress sales happening in the market, making it entirely a buyer's market."
Echoing this sentiment, another mill official stated, "Shredded inquiries stand at 400 from buyers, with offers ranging from 405-410/t. Currently, the market is more about testing rates due to decreased interest from Indian mills in imported scrap."
Additionally, in Pakistan, buyers adopted a cautious approach, anticipating a further drop in offers. Shredded scrap offers from Europe/US were heard at around $415-420/t CFR.
Furthermore, domestic demand for finished steel remained limited, further dampening market sentiments. Local scrap prices ranged between PKR 160,000-165,000/t followed by rebars at PKR 260,000-265,000/t and billets at PKR 220,000-225,000/t.
A steel mill official commented, "The market is quite slow; the majority of buyers have adopted a wait-and-watch approach, anticipating a further drop in offers. Sellers are feeling pressure and are aggressively giving offers."
A representative from a trading company added, "We had a target price of $420/t yesterday. Apparently, there's pressure on prices."
Bangladeshi buyers stayed relatively active amid a more positive market outlook. Indicative offers for shredded scrap from the UK/Europe were observed at $420-422/t CFR, with HMS (80:20) priced at $405-410/t CFR.
Market sources suggest that buyers are looking at bulk shredded at approximately $400-405/t CFR and HMS scraps around $390-395/t CFR, especially considering bulk HMS offers from the US to Turkiye, which are at 380-385/t CFR.
Turkish imported ferrous scrap prices slid downward today, influenced by reduced collection costs and sluggish demand from Turkish mills. Market insiders indicate that if rebar export sales continue to decline, mills may have room to decrease scrap prices by $5/t. The scrap-to-rebar spread expanded by $5/t to reach $205/t. Expressing a grim view, a rebar producer in Turkiye stated doubts about any short-term reversal in price downtrend, citing a generally pessimistic global scenario.
Price assessments
India: UK-origin shredded scrap indicatives were assessed at $406/t CFR Nhava Sheva, down by $2/t d-o-d.
Pakistan: UK-origin shredded scrap indicatives were assessed at $416/t CFR Qasim, down by $10/t d-o-d.
Bangladesh: UK-origin shredded scrap prices were assessed at $420/t CFR Chattogram, down by $3/t d-o-d.
Turkiye: US-origin HMS (80:20) bulk prices were assessed at $383/t CFR Turkiye, dropped by $2/t d-o-d.
Outlook
The near-term outlook for imported scrap appears bearish due to prevailing market sentiment. Indian buyers are expected to remain uninterested until imported scrap prices align with domestic rates. In Pakistan, buyers anticipate further drops in offers and are under no pressure to make purchases. With lackluster rebar sales in Turkiye, buyers foresee a bleak market outlook.
