South Asia: Imported ferrous scrap prices witness mixed trend; Bangladeshi buyers remain active

The South Asian ferrous scrap market saw a mixed trend in prices, while suppliers got mostly dull responses from Indian buyers amid continuing bid-offer disparities. Pakistan remained out of the market amid the ongoing general election in that country. Bangladeshi buyers were active in terms of new inquiries, and multiple containerised deals from Australia and the US were reported.

In India and Bangladesh, offers for shredded scrap dropped by $1-2/tonne (t), while in Pakistan, indicatives remained stable. Additionally, US bulk HMS (80:20) offers to Turkiye saw a d-o-d drop of $1/t.

Market overview

India: In India, indicative prices for shredded scrap from Europe stood at $410-415/t CFR Nhava Sheva, with HMS (80:20) priced at $390-398/t CFR. In Chennai, shredded scrap was quoted at $405-410/t CFR and HMS (80:20) at $385-395/t CFR.

Market participants observed a notable price disparity between domestic and imported scrap. For example, recent offers for HMS from the UK (arrival cargo) at $375/t CFR Mundra have attracted minimal interest from buyers. Domestic scrap is presently offered at a discount of $15-20/t compared to imported scrap.

As per a domestic mill representative, "A trader booked around 135 t of LMS for us at $335/t from Nhava Sheva for as-ready delivery."

Pakistan: Pakistani buyers majorly remained out of the market amid general elections in the country. However, indicatives for shredded scrap from Europe were at $440-444/t CFR Qasim.

A steel mill official remarked, "We have a nationwide electoral process going on so no one is interested in doing new business at the moment."

Bangladesh: In Bangladesh, purchasing activities were better as compared to other South Asian countries like India and Pakistan with offers for shredded scrap from Europe hovering around $435-438/t CFR Chattogram and HMS (80:20) at $414-417/t CFR. Bulk offers from the US were heard at $432-435/t CFR Chattogram.

As per market sources, last week PNS from Dubai was booked at $435/t, but the current situation after export duty implementation has made it a bit difficult for market participants to get a suitable price.

Fresh offers for HMS (Australia) were heard at $415/t whereas Australian shredded offers were heard at $430-435/t and bushelings from Malaysia were offered at $445/t CFR Chattogram.

As per a major trading house,"Around 5,000-6,000 t of Australia-origin HMS (80:20) in containers were booked at $415-418/t CFR Chattogram. The finished steel market is optimistic with improvement in demand."

Turkiye: Europe-origin HMS (80:20) was offered at $418-420/t CFR, while US-origin material was priced at $422-425/t CFR. Market sentiment was mixed, with some sources foreseeing further weakness due to a bearish outlook, while others believe a significant drop is unlikely in the near term. Near-term price expectations turned slightly bearish, as evidenced by softer offers from EU and US sellers after recent deals.

Challenges persisted in aligning collection costs in the Benelux region with Turkish mill expectations, as some local scrap suppliers expect higher prices from exporters despite limited scrap availability.

Recent deals

Around 1,000 t of PNS from Singapore were booked at $446/t on a CFR Chattogram basis.

Around 1,000 t of shredded from Europe were booked at $436/t on a CFR Chattogram basis.

Approximately 3,000 t of shredded from Australia were booked at $431-433/t on a CFR Chattogram basis.

Around 2,000 t of HMS (80:20) from the US were booked at $410/t CFR Chattogram.

Price assessments

India: UK-origin shredded scrap indicatives were assessed at $413/t CFR Nhava Sheva, down by $2/t d-o-d.

Pakistan: UK-origin shredded scrap indicatives were assessed at $442/t CFR Qasim, stable d-o-d.

Bangladesh: UK-origin shredded scrap prices were assessed at $436/t CFR Chattogram, down by $1/t d-o-d.

Turkiye: US-origin HMS (80:20) bulk prices were assessed at $419/t CFR Turkiye, down by $1/t d-o-d.

Outlook

Market sentiment is divided, with some expecting further weakness due to a bearish outlook, while others believe there will not be a significant drop in the near term. In Bangladesh, imported scrap trades are anticipated to remain on the higher side due to a shortage of scrap in the market following a prolonged lull in December and January.