South Asia: Imported scrap market remains sluggish

Following the global trend, the South Asian imported scrap market witnessed sluggishness in the middle of the week as buyers and suppliers held back. Turkish scrap prices continued to remain high. However, trade is yet to improve. Indian buyers are interested in booking fresh material, but are looking for price corrections. Pakistani and Bangladeshi-based buyers are out of the market. Buyers preferred to remain at the sildelines because banks have once again imposed restrictions on opening a letter of credit (LC).

India

Imported scrap buyers are waiting for market clarity after the recent circular released by Maharashtra's Customs stated that containers having goods with a declared CTI as '7204', which arrived at Indian ports despite the UAE's ban on export of ferrous scrap, have been put on hold by the Special Investigation and Intelligence Branch (SIIB(I)), and Jawaharlal Nehru Customs House (JNCH).

These containers have been put on hold after following the Standard Operating Procedure (SOP) which is prescribed after detailed examination and verification of documents in some cases and in order to facilitate timely clearance of the goods.

Hence, buyers whose containers are stuck at ports, may get their material after a clear and verified examination from Customs, SteelMint noted. Buyers are hopeful and looking for further price corrections.

"It's difficult to say anything right now, given the market situation, to what extent imported scrap prices will drop," said a scrap trader.

Pakistan

Pakistan's imported scrap market, on the other hand, remained unchanged more or less like yesterday. Trade activities are negligible as buyers are more focused on domestic sales to maintain the fund flow. Moreover, LC issues have slowed down trade activities. Imported scrap offers are unchanged for yet another day at $435-440/t CFR.

Bangladesh

Bangladesh's imported scrap buyers are mostly out of the market, owing to dull finished steel market sentiments. Additionally, restrictions on opening a new LC have kept buyers sidelined. Bulk offers are available in the market. However, buyers are showing less interest as of now. Buyers are looking for material from other origins, like Chile, the US, and Australia, at workable prices.

Turkiye

Trade activity remained absent in Turkiye's imported scrap market in the first part of the week. Negotiations were slow in the scrap market amid the continuing devaluation of lira and the current uncertainty in finished steel segment. Turkish steelmakers are reportedly reluctant to accept a level higher than $380/t CFR for European scrap. However, mills need cargoes for the July shipment, and market players believe that new bookings will appear soon at a broadly stable level.

Recent deal

• Around 500 t of HMS (90:10) was booked at $420/t CFR Chittagong.
  
  

Price assessments

• Europe-origin shredded scrap offers into India remained steady d-o-d at $435/t CFR Nhava Sheva.
  
  
• UK-origin shredded scrap prices into Bangladesh stood at $460-465/t CFR Chattogram, slightly up by $5/t d-o-d.
  
  
• UK-origin shredded scrap prices into Pakistan stood at $435-440/t CFR Qasim, largely stable d-o-d.
  
  
• Offers for USA-origin HMS (80:20) to Tukiye are at $385/t CFR, unchanged d-o-d.