South Asia: Imported scrap market sees mixed trend; offers edge up in India, Pakistan

The South Asian ferrous scrap market displayed mixed trends today. In India, market activities remained moderate; however, a slight uptick may be seen due to shortages in some regions. In Pakistan, there was a slight improvement in trading activities, although bid-offer disparities pose a challenge to trade. In Bangladesh, no significant deals or offers were reported, primarily due to the ongoing dollar crisis and Letters of Credit (LCs) issue.

Shredded scrap offers from Europe edged up by $1-2/t in India and Pakistan while remained flat in Bangladesh d-o-d.

Market overview

India: Today in India, the demand for imported scrap remained moderate. Shredded scrap from Europe was offered at $400-405/t CFR Nhava Sheva, while HMS scraps were priced at $380-385/t CFR.

In the domestic market, particularly in the northern region, steel mills are reportedly experiencing a shortage of scrap. This shortage may lead to a slight increase in scrap and semi-finished steel prices. Furthermore, logistical challenges have hindered the easy availability of scrap in the market.

Pakistan: In Pakistan, the demand for imported scrap has shown a slight increase with a few reported deals. However, there is disparity between bids and offers, which is likely to impact trading. Offers for shredded scrap were at $400-405/t CFR Qasim, but bids were in the range of $395-398/t CFR.

In the domestic market, despite steel mills raising rebar prices due to increased manufacturing costs, sales remained slow. Local scrap prices were reported at PKR 145,000-150,000/t, billets were at PKR 210,000-215,000/t, and rebars were priced at PKR 250,000-255,000/t.

A steel mill official said, "Rebar prices have risen by PKR 3,000-4,000/t w-o-w. However, market sentiments remain subdued, and there has not been any significant response from buyers. Buyers were anticipating a price decrease, but the increase in manufacturing costs prompted mills to raise rebar prices."

Bangladesh: In Bangladesh, trading activities have been severely affected by the forex crisis and issues related to opening of LCs, which are expected to persist until the elections. Furthermore, construction activities have also been hindered due to the upcoming elections. Imported shredded scrap offers from Europe stood at $416-420/t CFR Chattogram, while HMS (80:20) stood at $395-405/t CFR.

In the domestic market, rolling mills offered rebar in the range of BDT 85,000-86,000/t, while primary mills priced their products above BDT 90,000/t.

Turkiye: Turkish deep-sea imported scrap prices were steady, with uncertainty surrounding further price increases. Increased demand from Turkish mills is countered by a supply-driven price surge, particularly for Baltic HMS (80:20) at $360/t CFR Turkiye. Suppliers in the U.S. and Europe plan to continue raising prices, expecting a lasting trend. U.S. scrap prices may impact export prices as the automobile industry strike nears its end.

Recent deals

• Around 500 t of HMS (80:20) scraps were booked from Europe at $375/t CFR west coast India.
  
  
• A 500 t mix parcel of HMS and PNS scrap was sourced from Peru at $420 CFR Chattogram.
  
  
• Approximately 700 t of shredded scraps were booked from Europe at $403 CFR west coast India.
  
  
• About 500 t of HMS (90:10) scrap were booked from Middle east at $400/t CNF west coast India.
  
  
• Around 500 t shredded from Europe were booked at $400/t CFR Mundra
  
  
• A deal of 1,000 t of HMS from Kuwait has been concluded at $400/t west coast India.
  
  
• Around 1,000 t of PNS scrap were sourced from Kuwait and Bahrain at $420/t CFR west coast India.
  
  
• About 1,000 t of PNS scrap were procured from the UK at $415/t CFR west coast.
  
  
• Around 500 t of shredded scrap were booked from Europe at $398/t CFR Qasim.
  
  
• About 1,000 t of shredded scrap were procured from Europe at $400/t CFR Qasim.
  
  
• Around 250 t of Middle East-origin blue steel scrap were sold at $415/t CFR Qasim.
  
  

Price assessments

India: UK-origin shredded scrap offers edged up by $2/t to $400/t CFR Nhava Sheva, today.

Pakistan: UK-origin shredded scrap offers were up by $1/t to $401/t CFR Qasim today.

Bangladesh: Offers for UK-origin shredded scrap were assessed stable at $418/t CFR Chattogram.

Turkiye: US-origin HMS 1&2 (80:20) prices were unchanged at $357/t CFR Turkiye today.

Outlook

In the near term, imported ferrous scrap offers in the South Asian region are expected to remain volatile. In India, the revival of demand and shortage in the domestic market are likely to support imported scrap offers. However, in Pakistan and Bangladesh, the potential for volatility exists due to LC-related issues and slower-than-expected demand in the domestic market.