South Asia: Imported ferrous scrap prices witness marginal uptick; Turkiye remains stable

The ferrous scrap market in South Asia witnessed a mixed-price trend for the day, as scrap prices in Turkiye remained soft after continuous bookings last week. Sellers continued with firm offers before winter closing, followed by elevated freight rate. In India, buyers opted to observe the containerised market with small-volume trades at negotiable prices. Pakistani buyers remained silent against higher offers from European suppliers and interested for the Middle East-origin materials for quicker availability and viable price range.

Shredded scrap offers increased by $1-3/t in India, Pakistan, and Bangladesh whereas, bulk US HMS (80:20) offers to Turkiye remained unchanged for the day.

Market overview

India: In India, the current situation witnessed a wait-and-watch mode with indicative prices for shredded scrap from Europe reported at $425-428/t CFR, while from the US offers were at $422-424/t CFR. Offers for HMS (80:20) scraps stood at $405-410/t CFR from Europe and ranged between $415-418/t CFR from Australia.

As per a mill source in southern India, "Imported ferrous scrap prices remained high but undoubtedly fewer actions have been taken against this price. Port activities have been partially resumed after the cyclone hit, which is currently not a great environment for buyers if they consider a viable price range in the market to get materials." Last week, a Chennai-based buyer booked 2,000 t the US-origin shredded at $408/t and 1,000 t HMS at $390/t CFR Chennai, he added.

Pakistan: In Pakistan, imported scrap market remained relatively slow as compared to the previous week as offers remained firm with recent shredded scrap offers from Europe which were evaluated at $434-436/t CFR Qasim. Domestic rebar offers were heard at around PKR 265,000-270,000/t Exw, however, market activities were reported at relatively low price. Local billet offers were heard at around PKR 210,000/t exw and mill-wise billet offers varying from PKR 225,000-230,000/t exw.

Domestic scrap offers were heard at around PKR 160,000-168,000/t exw basis, depending on regions.

A trader commented,"The current market is experiencing a slowdown, with finished steel sales remaining sluggish, primarily impacted by a significant increase in global scrap prices and a weakened operational advantage for buyers."

Bangladesh: In Bangladesh, market activities remained relatively slow in containerised scrap as shredded scrap offers from Europe and Australia were evaluated at $448-455/t CFR Chattogram, and HMS (80:20) scraps were reported at $425-430/t CFR.

Notably, Bangladeshi mills, including BSRM, Abul Khair, and KSRM, are set to purchase 4 to 5 vessels from the USA.

Currently, indicative prices for the US WC bulk stand at around $413-420/t. There is a moderate increase in bulk inquiries following a pause in the Turkish market. However, the post-election conditions pose challenges in assessing the market due to constraints in the flow of funds.

Turkiye: Indicative offers for HMS (80:20) remained stable with limited trading. European market participants are cautious, anticipating that Turkish finished steel sales may prompt mills to maintain current prices. The recent surge in scrap prices has led to cautious optimism among sellers, despite challenges in previous sales at lower levels.

In the Benelux region, HMS collection costs are elevated at Euro 330/t delivered as of now. The devaluation of the euro against the dollar is expected to influence European scrap offers to Turkiye

European domestic ferrous scrap prices rose in December, fueled by a significant uptick in the benchmark Turkish import scrap market in November, setting a bullish tone in the European market.

Recent deals

A bulk vessel from Singapore containing 8,500 t bulk HMS (80:20) sold at $420/t last weekend on a CFR Chattogram basis.

Another Singapore-based bulk vessel comprising 8,500 t PNS scrap sold at $440/t last weekend on a CFR Chattogram basis.

Price assessments

India: The UK-origin shredded scrap indicatives rose by $3/t to $428/t CFR Nhava Sheva today.

Pakistan: The UK-origin shredded scrap indicatives were up by $2/t to $435/t CFR Qasim today.

Bangladesh: The UK-origin shredded scrap prices were assessed at $449/t CFR Chattogram, up by $1/t d-o-d.

Turkiye: The US-origin HMS (80:20) bulk prices were assessed at $430/t CFR Turkiye, unchanged d-o-d.

Outlook

Imported scrap offers in the South Asian markets are expected to hold steady this week, driven by a bid-offer disparity between suppliers and buyers. The weak performance of Pakistan's domestic rebar markets is likely to exert pressure on the imported scrap market. Meanwhile, Bangladeshi mills remain optimistic about securing bulk volumes before the winter closings, adding an element of hope to the market dynamics.