South Asia: Imported ferrous scrap prices fall d-o-d in sluggish trade

The imported ferrous scrap market in South Asia continued its slow pace as major buyers like India and Bangladesh saw limited deals amid low demand from end-users.

Overall, the market saw a d-o-d fall in prices.

India

Indian market participants did not consider the high offers as they can avail of other metallics at lower prices. However, some bookings were done at comparatively lower offers.

In India, the imported ferrous scrap offers have remained on the lower side, with sellers quoting around $405-410/t for European shredded scrap. However, due to the soft market conditions, there is currently no significant buying activity. The major purchasers are focusing on bulk bookings in preparation for winter restocking after the monsoons. Traders in India expect prices to go down further to the $400/t level due to the weak global domestic market in the US and Europe.

An Indian trader said: "Ferrous scrap deals were heard at $409-412/t CFR Nhava Sheva. The market is anticipated to go down further due to weak global markets, especially in the US and Europe at the moment, with sellers quoting even lesser offers."

Another Indian buyer informed: "Post-monsoon bookings will be heard soon, and prices will go down to the $400/t level keeping in mind the current market situation."

Another trade source informed there are not many deals heard and the market is very silent. Offers are being floated but no major active buyers are there right now.

Pakistan

The Pakistani ferrous scrap buyers, challenged by uncertainties, were able to import in small parcels whereas the Bangladesh market witnessed some bulk sales happening for US/UK-origin materials.

In Pakistan, the imported scrap market is moving slowly, with sluggish demand from end-users and a halt in construction activities. Participants are facing challenges in opening prompt letters of credit (LCs) for decent volume bookings.

Few deals have been heard in shredded at the $415-420/t level for shipments in August or September.

Bangladesh

Bangladesh has also experienced a slow week due to a sluggish domestic market and reduced interest in buying finished and semi-finished products during the monsoon season.

Bulk sales are taking place, including HMS (80:20), at around $415-417/t, and shredded of UK- and US-origin are priced at $420-422/t for shipments in August.

Turkiye

The Turkish scrap import trade has picked up as expected after a holiday slowdown, with major mills booking a few cargoes, and more deals are anticipated in the coming days. The market sentiment has remained stable-to-slightly lower, with US suppliers' return to the market after an extended Independence Day holiday weekend.

Recent deals:

Around 500-1,000 t of shredded scrap were booked at $415-420/t on CFR Qasim.

Around 1,000 t of UK-origin shredded scrap were sold between $409-412/t CFR Nhava Sheva

Price assessments:

India: UK-origin shredded scrap offers stand at $412/t CFR Nhava Sheva, down by $3/t.

Pakistan: UK-origin shredded scrap offers stand at $416/t CFR Qasim, down by $2/t from the previous offer.

Bangladesh: Offers for UK-origin shredded scrap were at $442/t CFR Chattogram, slightly down by $3/t.

Turkiye: US-origin HMS 1&2 (80:20) prices stand at $376/t CFR Turkiye, slightly down by $1/t d-o-d

Outlook

The short-term outlook for scrap bookings in the South Asian ferrous scrap market remains uncertain. Prices may fluctuate, based on the market sentiments and buying trends of global scrap price setter Turkiye.