South Asia: Imported ferrous scrap prices rise as suppliers cite higher collection costs
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- Turkish mills hesitant to accept higher offers
- India's imported scrap prices rise
The South Asian imported ferrous scrap market witnessed a positive trend in terms of prices, except Turkiye. EU and US-origin shredded scrap offers rose as suppliers cited increasing collection costs from yards. In Turkiye, however, prices softened due to bid-offer disparities and cautious buying behaviour. The imported scrap markets in Pakistan and Bangladesh also showed weaker trade activities amid higher offers.
India: Imported scrap offers from the EU recyclers rose following a high-priced Turkish deal in recent days. Shredded scrap was reported at $390-393/t CFR Nhava Sheva. Dock collection prices also rose to EUR 282-283/t, up EUR 7-8/t w-o-w.
As per a major scrap buyer from India, European offers are considered too high for Indian buyers, as winter holidays in Europe (21 December- 7 January) influence the market.
Shredded scrap offers from the US are quoted at $392-395/t, but buyers are hesitant to negotiate, and sellers are unwilling to lower prices despite ongoing difficulties in the region. Additionally, the US dollar dropped slightly against the euro this week.
PNS was at $390/t CFR Mundra, with sellers asking $397/t, creating a $7/t gap between buyer and seller prices.
The safeguard duty could disrupt the market by benefiting local steelmakers but raising steel prices for industries, particularly MSMEs, leading to potential problems.
Pakistan: The imported scrap market is showing a slight improvement, with suppliers now asking $395-400/t for shredded scrap CFR Qasim, reflecting higher collection costs. Buyers are negotiating at $385-38/t for quantities above 1,000 t, while 500 t are available only at prices above $390/t.
Bangladesh: Imported scrap prices are showing slight movement despite the market facing significant pressure as customers remain reluctant to purchase more scrap.
According to a Dhaka-based importer, the offers received from the EU were at $395-400/t for shredded scrap and $375/t for HMS. However, buyers quoted $15-20/t lower, but there was no interest from the suppliers at $375-380/t or $360/t CFR.
A Dhaka-based mill source informed that currently they are not sourcing any imported materials due to the lack of demand.
Domestic scrap prices have decreased compared to last week, now ranging between BDT 46,000-47,500/t, down from last week's range of BDT 48,000-48,500/t.
Rebar prices in Dhaka are at BDT 77,000/t, with an additional BDT 4,000/t in Chattogram.
A major mill official stated, "We are now waiting for clearer price direction in the first week of January."
Turkiye: Turkish imported scrap prices dropped due to bid-offer disparities as buyers were unwilling to pay higher prices, while sellers were hesitant to lower their offers.
The indicative tradable prices for EU/Benelux-origin HMS (80:20) scrap were around $345-346/t CFR, while prices for premium or US/Baltic-origin HMS (80:20) scrap ranged from $350-355/t CFR. Seller targets and offers for US/Baltic-origin HMS (80:20) scrap were reported between $355-360/t CFR.
A Turkey-based mill source stated, "We have already made our purchase, and we are no longer in the market. The price is too high now, and it may come under pressure soon." Mills, were reported to be holding off on purchases, waiting for further price corrections due to weaker signs as regards rebar sales.
A Benelux-based recycler said, "It seems Turkish mills are taking a wait-and-see approach. They are waiting to see if prices will drop. I think Turkish mills still need around 10 cargoes for January."
Price assessments
India: UK-origin shredded indicatives were up by $5/t d-o-d at $393/t CFR Nhava Sheva.
Pakistan: UK-origin shredded indicatives edged up by $2/t d-o-d to $394/t CFR Qasim.
Bangladesh: UK-origin shredded was assessed at $394/t CFR Chattogram, up by $1/t d-o-d.
Turkiye: US-origin HMS (80:20) bulk was assessed at $351/t CFR Turkiye, down by $2/t d-o-d.
