South Asia: Imported scrap market remains slow d-o-d on tepid demand
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In South Asia, India's demand for imported scrap has decreased as current offer levels are deemed unworkable and pricier than domestic options. In Pakistan, demand remains limited due to a slowdown in the domestic steel market. Meanwhile, Bangladesh is gradually recovering from recent unrest, with industrial activity resuming despite partial internet disruptions. In Turkiye, deep-sea imported ferrous scrap prices have slightly declined as mills focus on cheaper billet imports from China and the CIS region.
Overview
India: India's imported scrap demand has diminished as buyers find current offer levels unworkable and more expensive than those available domestically. Consequently, no firm bids or offers were being floated in the market. Indicative offers for shredded scrap from the US and UK/Europe were reported at $410-418/t CFR Nhava Sheva, while HMS (80:20) was at $388-392/t CFR.
A trader source revealed, "Even though we are receiving inquiries from buyers, especially in the Gujarat region, there are no suppliers at the buyers' desired bids."
Pakistan: Imported scrap demand in Pakistan remained limited today due to a slowdown in the domestic steel market. Indicative offers for shredded scrap from the UK/Europe were at $425-430/t CFR Qasim.
Bangladesh: Industry reports indicated that Bangladesh is gradually recovering from the recent quota protests and civil unrest. With the government easing curfews, industrial activity across the country is slowly resuming. However, internet connectivity remained partially disrupted, which is indirectly impeding the full resumption of major trades in both the domestic and imported scrap sectors.
Market survey on the nationwide disruption's impact on the ferrous scrap and steel markets yielded mixed responses. Some experts believe the impact will be minimal, while others suggested waiting for further developments. However, current trends indicated that smaller mills and traders in the Dhaka region are affected, while larger mills are not expected to see any long-term effects.
Indicative offers for shredded scrap from the UK/Europe were assessed at $425-428/t CFR Chattogram, while HMS (80:20) offers were at $400-405/t CFR.
Turkiye: Turkish deep-sea imported ferrous scrap prices slightly declined as mills shifted their focus to billet imports and restocking scraps from the shortsea market due to competitive pricing. Offers for US-origin bulk HMS (80:20) were assessed at $388/t CFR Turkiye, a decrease of $1/t d-o-d. Turkish mills were opting for billet imports from China and the CIS region due to the continuous price decline throughout the week. Some mills were also heard planning to produce rebar using these more affordable billets.
Price assessments
India: UK-origin shredded scrap indicatives were assessed at $416/t CFR Nhava Sheva, up by $3/t d-o-d.
Pakistan: UK-origin shredded indicatives were assessed at $428/t CFR Qasim, up by $1/t d-o-d.
Bangladesh: UK-origin shredded prices were assessed unchanged at $426/t CFR Chattogram.
Turkiye: US-origin HMS (80:20) bulk prices were assessed at $388/t CFR Turkiye, down by $1/t d-o-d.
Outlook
India's imported scrap demand remains subdued due to the ongoing monsoon season, which traditionally dampens rebar sales. Additionally, mills are seeking August shipments, but these are anticipated to be fewer compared to previous months due to limited container availability during high demand periods across export destinations. However, with monsoon subsiding gradually demand is expected to pick up by mid-August. At that point, either suppliers will soften their offers, or buyers will increase their bids. With the the recent FY24-25 budget release, the market conditions are set to be clear, potentially paving the way for renewed activity.
