South Asia: Imported ferrous scrap prices witness mixed trends- 28 June
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The South Asian ferrous scrap market witnessed mixed trends in terms of prices. In India, bid-offer disparities continued to weigh on trade activities. Pakistani buyers witnessed a slow trade flow amid sluggish steel demand. In Bangladesh, letters of credit (LC) issues are comparatively less now with multiple containerised deals done from Australia and the UAE. Meanwhile, Turkish imported ferrous scrap prices remained stable with firm offers heard from the US suppliers at $392/t although buyers continued to quote $385-386/t levels for bids.
Overview
India: In India, demand for imported scrap continued to remain dull due to the unsupportive steel market and the availability of alternative metallics. Additionally, bid levels for shredded remained at $400/tonne (t) with suppliers unwilling to keep their offers below $412-415/t. Indicative offers for shredded scrap from the US and the UK/Europe were heard at $408-414/t CFR Nhava Sheva, while buyers' bids were at $400-402/t CFR. Offers for HMS (80:20) from West Africa and the UK/Europe were heard at $383-389/t CFR.
A trade source commented, "Despite high freight rates, pellet, and sponge offers are effectively capping imported scrap rates from increasing further. As a result, import volumes through containers are likely to decrease, with a portion seen shifting to bulk shipments and others opting for pellets or lump sponge alternatives."
Pakistan: The imported ferrous scrap market in Pakistan remained slow with minimal deals heard as sluggish demand kept steel mills less active and operating at one-third of their production level.
Current UK/Europe offers for shredded scrap hovered at $422-424/t CFR Qasim.
A market participant commented,"Buyers are cautious with their purchasing prices, anticipating potential demand fluctuations in the coming month as the government reviews steel mills and aligns investments with IMF advice."
Bangladesh:The Bangladeshi imported scrap market remained comparatively active with multiple deals heard from the UAE and Australia.
A major steel mill representative commented, "The domestic steel market is currently sluggish due to the rainy season, prompting buyers to procure imported scrap only as needed. Before Eid, there was a shortage of scrap as many buyers restocked. Currently, LC issues have eased. Domestic rebar is priced at BDT 88,500/t ex Dhaka and BDT 92,000/t ex-Chattogram, whereas, billet is between BDT 75,000 and 76,000/t."
Price assessments
India: UK-origin shredded scrap indicatives edged up by $1/t to $414/t CFR Nhava Sheva, d-o-d.
Pakistan: UK-origin shredded indicatives were assessed at $423/t CFR Qasim, up by $1/t d-o-d.
Bangladesh: UK-origin shredded prices were assessed at $422/t CFR Chattogram, down by $1/t d-o-d.
Turkiye: US-origin HMS (80:20) bulk prices were assessed at $390/t CFR Turkiye, stable d-o-d.
