South Asia: Imported ferrous scrap prices largely stable d-o-d, tags edge up

• India's scrap market improves on strong rebar sales
  
  
• Pak domestic scrap shortage supports import inquiries
  
  

The South Asian ferrous scrap markets showed mixed trends. India's market saw gradual improvement, supported by strong rebar sales and steady demand. Pakistan experienced stable offers for EU-origin shredded scrap, while Bangladesh showed slight improvement, with mills expected to increase activity post-Chinese New Year holidays.

Meanwhile, prices of US-origin HMS (80:20) edged up by $3/t in Turkiye. However, the overall market remained largely stable.

India: The Indian imported scrap market is showing gradual improvement, driven by strong rebar sales and sustained demand from major players, many of whom are booked for the next two months. Despite this positive momentum, buyers remain highly price-sensitive, prompting sellers to navigate negotiations carefully to secure favourable deals.

Two bulk shipments were heard booked from the US to Mundra Port at $370-372/t CFR. The cargo comprised shredded and HMS.

Current offers for HMS (80:20) from the UK/EU are at $355-360/t CFR. Buyers in northern India, however, are reluctant to pay higher prices for certain origins. A recent bid of $350/t CFR Mundra for 1,000 t of Mozambique-origin HMS (90:10) was declined by the seller, who was targeting $360/t CFR.

Pakistan: In Pakistan, the imported ferrous scrap market has seen offers for EU-origin shredded scrap at $381-382/t CFR. On the domestic front, scrap prices are at PKR 147,000/t amid a slight shortage in the local market, which could support imported scrap inquiries.

Bangladesh: The Bangladeshi imported scrap market has shown slight improvement, with mills beginning to evaluate offers more actively.

As per market participants, many buyers remain cautious, and purchasing activity is expected to gain some momentum from the second week of February, post-the Chinese New Year holidays. Mills are carefully observing market trends before taking informed decisions.

As per a Dhaka-based trader, although prices are slightly firm, no offers have been received from listed sellers due to the absence of strong buying inquiries from end-users.

A source from a Chattogram-based mill said, "We are not sure about the Dhaka market. At present, all buyers are hailing from Chattogram. They are looking to capitalise on improving end-user demand. However, no updates have been received regarding increased project activities."

Turkiye: Turkish deep-sea imported ferrous scrap inched up slightly amid reports of higher price targets from suppliers.

Indicative tradable prices for US/Baltic-origin HMS (80:20) were at $342-345/t CFR, with limited market activity following a slow start to the week.

One Baltic recycler indicated a tradable value of $350/t CFR for Baltic-origin HMS (80:20), while another said $340/t CFR was no longer viable. However, a Turkish mill commented that Turkiye's finished steel prices would not support higher scrap prices. They expected US-origin HMS (80:20) deals to be concluded at $345/t CFR this week.

Price assessments

India: UK-origin shredded indicatives were assessed at $374/t CFR Nhava Sheva, up by $1/t compared to the previous day.

Pakistan: UK-origin shredded indicatives were at $381/t CFR Qasim, stable d-o-d.

Bangladesh: UK-origin shredded was assessed at $384/t CFR Chattogram, down slightly by $1/t d-o-d.

Turkiye: US-origin HMS (80:20) bulk scrap edged up by $3/t to $344/t CFR Turkiye compared to previous day.