South Asia: Imported scrap market further softens, Pakistan offers edge up following Turkiye deals

Today, the South Asian ferrous scrap market saw further softening due to a lack of inquiries amidst unclear offers. Indian buyers continued to remain silent due to disparities between bids and offers. Pakistani buyers remained confused due to an uptick in offers following recent Turkish deals, although downstream demand remained poor.

Shredded scrap offers dropped by $2-3/t in India and Bangladesh, while edging up by $4/t in Pakistan.

Overview

In India, the demand for imported scrap continued to face pressure as buyers awaited clarity on offers before committing to significant bookings. Notably, indicative offers for shredded scrap from Europe/the UK and US hovered at around $395-400/t CFR, whereas HMS (80:20) offers from Europe/the UK and West Africa varied between $370-376/t CFR.

Meanwhile, in Pakistan, offers have risen compared to yesterday following the recent Turkish deals. However, buyers remain cautious due to volatility and subdued demand in the domestic steel market. Indicative offers for shredded scrap from the UK/Europe are reported to be at around $405-410/t CFR.

In contrast to India and Pakistan, buyers in Bangladesh remain relatively active. According to sentiments from mills in Bangladesh, domestic rebar sales have improved, driven by prospective infrastructure development post-election. In the near term, the outlook appears stable due to overall positive market conditions. However, the absence of buyers from India, Vietnam, and Turkiye has contributed to stability in Bangladesh, with no apparent reasons for a price drop.

Indicative offers for shredded scrap into Bangladesh from the UK/Europe are at $405-415/t CFR, while HMS (80:20) offers are at $395-400/t CFR.

Turkish imported ferrous scrap offers remained largely stable, with a slight drop of $1/t d-o-d following a recent deal.

• A West Marmara-based mill secured a France-origin cargo, including 12,000 t of HMS (80:20), at $377.5/t, 5,000 t of shredded scrap at $399.5/t, and 6,000 t of PNS at $397.5/t CFR Turkiye.
  
  
• An East Marmara-based mill purchased a US-origin cargo of HMS (80:20) at $377/t CFR Turkiye.
  
  
• A Mediterranean region-based mill booked a Europe-origin bulk cargo containing HMS (80:20) at $372/t and bonus scrap at $392/t CFR Turkiye.
  
  

Price assessments

India: UK-origin shredded scrap indicatives were assessed at $401/t CFR Nhava Sheva, down by $2/t d-o-d.

Pakistan: UK-origin shredded scrap indicatives were assessed at $408/t CFR Qasim, up by $4/t d-o-d.

Bangladesh: UK-origin shredded scrap prices were assessed at $405/t CFR Chattogram, down by $3/t d-o-d.

Turkiye: US-origin HMS (80:20) bulk prices were assessed at $377/t CFR Turkiye, down by $1/t.

Outlook

In the near term, imported ferrous scrap offers into South Asian markets are expected to remain volatile given the prevailing market conditions. However, concerning demand, India is anticipated to stay on the sidelines due to the price gap and the approach of Holi and elections. Pakistani buyers may adopt a wait-and-see approach due to fluctuations in offers and the ongoing Ramadan period. Bangladeshi buyers have already secured ample volumes, potentially leading to a slowdown in fresh bookings.