South Asia: Imported ferrous scrap prices witness mixed trend

South Asian ferrous scrap prices saw mixed trends today. In India, prices showed a slight increase driven by recent deals, while buyers favoured pre-booked shipments due to economical rates. Pakistan experienced a slowdown post-elections, with reduced offers from Europe amid pressure on the sell side due to limited enquiries in the previous week. Bangladesh grappled with delays in letters of credit (LC) approvals. Turkish import prices saw a marginal decline amidst cautious buyer sentiments.

Overview

The pace of India's imported ferrous scrap market remains slow, with buyers showing a preference for materials that have already been booked and are scheduled to arrive at Indian ports in March and April at lower prices compared to current offers for fresh shipments. This subdued buying trend is influenced by the slow domestic steel market and a growing interest in non-European cargoes due to significant price gaps with European-origin shipments.

Indicative offers for shredded scrap from Europe hovered around $430-435/t CFR Nhava Sheva, while prices for imminent shipments were reported at $415-420/t CFR, according to market sources. Offers for HMS (80:20) stood at $390-400/t CFR, with actual transaction levels slightly lower at around $380-385/t. In contrast, workable rates for West African HMS (80:20) were noted at $375-380/t CFR.

A steel mill official said, "We're only securing shipments for March and April arrivals, given subdued sales of finished steel. Consequently, we have reduced our production and are incorporating sponge iron into our charge mix."

Moreover, in Pakistan, market activities have suffered as a result of recent elections and their aftermath. Additionally, offers from Europe have decreased to $430-435/t CFR Qasim - as sellers feel the strain of reduced purchases in the previous week amidst sluggish sales of finished steel.

According to an official from a steel mill, "The market is experiencing a slowdown. People are waiting for government formation. As it is Assembly week, all sales are invoiced, leading to sluggish pace and delayed payments."

In Bangladesh, indicative offers for shredded scrap from Europe were at around $430-435/t CFR Chattogram, while HMS (80:20) was reported at $410-415/t CFR. Some transactions have been recorded for PNS scrap from the UAE and Hong Kong. However, market activities have decelerated due to delays in LC approvals.

Turkish deepsea import ferrous scrap prices edged down by $1/t due to a wide bid-offer spread, limiting market activity. HMS (80:20) import offer to Turkiye was assessed at $405/t CFR. Tradable indications for EU-origin HMS (80:20) hovered around $400/t CFR, with potential for negotiation. Market participants noted a cautious approach amid available cargoes and postponed purchases by mills. Meanwhile, a Baltic recycler expressed willingness to wait for price recovery before exporting, eyeing the Turkish market's condition in early April.

Price assessments

India: UK-origin shredded scrap indicatives were assessed at $418/t CFR Nhava Sheva, up by $2/t d-o-d.

Pakistan: UK-origin shredded scrap indicatives inched down by $4/t to $431/t CFR Qasim.

Bangladesh: UK-origin shredded scrap prices were assessed at $434/t CFR Chattogram, down by $2/t.

Turkiye: US-origin HMS (80:20) bulk prices were assessed at $405/t CFR Turkiye, down by $1/t d-o-d.