South Asia: Imported ferrous scrap prices stable d-o-d amid limited buying interest

Imported ferrous scrap prices in South Asia showed stability d-o-d across markets due to restrained and demand-driven purchasing, particularly in India and Pakistan. Concurrently, there was increased activity among Bangladeshi buyers today, with a few reported deals.

Market overview

India: The demand for imported scrap in India remains subdued due to limited buying interest and discrepancies in offers and bids. Shredded scrap from Europe held steady at $420-425/tonne (t) CFR Nhava Sheva, while HMS (80:20) was reported at $400-405/t CFR.

According to a trade source, current freight rates are notably high, with the UK-to-Mundra freight doubling and currently standing at $1,500-1,800/container. Indicatively, Mundra prices are at $410/t for HMS (80:20) and $425-430/t for shredded scrap.

Pakistan: Today, the demand for imported scrap in Pakistan showed a moderate trend. Reports indicated that shredded scrap offers from Europe were in the range of $440-445/t CFR Qasim, while those from the Middle East were assessed at $445-450/t CFR.

An official from the mill remarked, "Market sentiments are sluggish, and purchasing is happening only on need basis."

Within the domestic market, scrap prices were reported between PKR 170,000-180,000/t, while rebars were priced at PKR 260,000-265,000/t, and billets stood at PKR 231,000/t ex. An official from a steel mill commented, "Market conditions remain unchanged compared to last week, with very weak demand observed so far. This is attributed to cold weather in Punjab and uncertain economic conditions due to the upcoming elections."

Bangladesh: In Bangladesh, there has been a slight improvement in the imported scrap market, marked by a few reported deals from Australia, New Zealand, Singapore and Malaysia. Shredded scrap offers from Europe were noted at $445/t CFR Chattogram, while HMS (80:20) was priced at $420/t CFR. Middle East origin HMS scraps were offered at $420-425/t CFR Chattogram.

Turkiye: Turkish deep-sea import ferrous scrap prices remained unchanged with minimal shifts reported in market fundamentals during a quiet start to the week. Market participants shared indicative tradable values for US-origin HMS (80:20) at around $423/t CFR, citing limited market activity. Despite expectations from US sellers that prices will exceed $430/t CFR and European sellers exploring alternative geographies, the Turkish market remained subdued.

Market sentiments indicated a calm outlook, with no major moves seen in either direction, according to an EU recycler.

In other regions, short-sea exporters maintained firm targets, with a short-sea supplier expressing doubt that sellers in Romania would go below $400/t CFR. Many sellers are optimistic about a positive market, expecting new deals to overcome the bearish trend.

Recent deals

• About 1,000 t of HMS (90:10) were booked from Australia at $415/t CFR Chattogram.
  
  
• Around 1,000 t of sheared HMS scraps were procured from Australia at $411/t CFR Chattogram.
  
  
• A parcel of 1,000 t of PNS scraps were sourced from Malaysia at $443/t CFR Chattogram.
  
  
• Approximately 1,000 t of shredded scrap were booked from Australia at $435/t CFR Chattogram
  
  
• Around 1,000 t of shredded scrap were booked from Europe at $437/t CFR Qasim.
  
  

Price assessments

India: UK-origin shredded scrap indicatives were stable at $425/t CFR Nhava Sheva.

Pakistan: UK-origin shredded scrap indicatives were flat at $440/t CFR Qasim.

Bangladesh: UK-origin shredded scrap prices were kept unchanged at $445/t CFR Chattogram.

Turkiye: US-origin HMS (80:20) bulk prices were assessed at $423/t CFR Turkiye, stable d-o-d.

Outlook

Imported scrap offers are expected to stay range-bound, given the limited interest from importers who are waiting for a more defined price trend. Although the increase in freight costs might affect the offers, sources suggest that this could be a short-term shift.