South Asia: Imported ferrous scrap prices edge up despite limited demand

Today, ferrous scrap prices in South Asia witnessed a slight increase, supported by firm offers from suppliers. However, demand in the markets remained subdued. In India, festivities and the availability of cost-effective domestic material affected the appetite for imports. Meanwhile, in Pakistan and Bangladesh, challenges related to Letters of Credit (LC) and a sluggish finished steel sector contributed to a decline in overall demand for imported scrap.

Shredded scrap offers experienced a modest increase of $2-4/t in India and Pakistan, while remaining unchanged in Bangladesh.

Market overview

India: The demand for imported scrap in India remained low, with many buyers still in a holiday mood owing to the Diwali festival. Furthermore, a disparity between bids and offers persisted, leading buyers to prioritise the procurement of material from the domestic market.

Offers for shredded scraps from Europe were assessed at $410-415/t CFR Nhava Sheva, while buyers' expectations were below these levels.

HMS (80:20) scraps originating from Europe were evaluated at $390-395/t CFR.

A source from a steel mill commented, "While we are receiving high offers from suppliers for imported scrap, our current preference is not to engage in buying imported scrap. This is because domestic scrap is more cost-effective than imported scrap at the moment. Additionally, market activities are limited due to the ongoing Diwali festivals."

Pakistan: In Pakistan, the demand for imported scrap remained limited, with buyers opting to make purchases on a need basis. Additionally, the opening of letters of credit is emerging as a challenge, sources informed. Offers for shredded scrap from Europe were reportedly in the range of $410-415/t CFR Qasim. While a few deals were heard to have been concluded at approximately $408-410/t CFR levels.

In the domestic market, local scrap prices were heard at PKR 155,000-165,000/t exw, while rebars were evaluated at PKR 255,000-260,000/t exw. Billet prices stood at PKR 220,000-225,000/t exw.

Industry participants reported that "The local scrap market in Pakistan is currently volatile and unpredictable. There have been fluctuations, with buying activities slowing down."

Bangladesh: Buyers in Bangladesh are encountering difficulties in opening Letters of Credit (LC), contributing to a low demand for imported scrap. Additionally, weak sales of finished steel in the domestic market further hinder the demand for imported scrap. Indicative offers for shredded scrap stand at $420-425/t CFR Chattogram, while HMS (80:20) were reported at $400-410/t CFR.

Turkiye: Turkish deep-sea imported ferrous scrap prices showed a slight increase, but buyers might exercise more patience as stocks levels have improved. However, an anticipation of a gradual price increase persisted in the market.

A UK-based supplier concluded sales of mixed scrap cargoes to two major Turkish mills, with, deal prices witnessing an increase of $2-4/t in one transaction.

• A Mediterranean region-based mill secured 30,000 t of HMS (80:20) at $373/t CFR and 10,000 t of bonus at $393/t CFR.
  
  
• A Western region-based mill booked HMS (80:20) at $379/t CFR. Bonus and shredded were booked at $404/t CFR.
  
  

Recent deals

• Around 750 t of PNS scraps were booked from Europe at $425/t CFR Nhava Sheva.
  
  
• About 1,000 t of busheling blue steel scrap was booked from Europe at $440/t CFR Nhava Sheva.
  
  
• Approximately 800 t of Kuwait HMS 1 were sold at $408/t CFR Nhava Sheva.
  
  
• A parcel of 2000-t of shredded scrap was secured from Europe at $408/t CFR Qasim.
  
  
• Around 1,000 t of busheling bundles were booked from Europe at $435/mt CFR Chennai.
  
  

Price assessments

India: UK-origin shredded scrap offers were up by $4/t to $412/t CFR Nhava Sheva today.

Pakistan: UK-origin shredded scrap offers edged up by $2/t to $414/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 stood at $379/t CFR Turkiye today.

Outlook

The prices of imported ferrous scrap in South Asia are anticipated to stay stable, with suppliers maintaining firm offers. In India, a modest uptick in activities is anticipated once the festivities conclude.