South Asia: Imported scrap market silent, buyers await clarity

South Asia's imported scrap market was mostly quiet today. The major scrap buyer, Turkiye, recorded no fresh deals. Major South Asian players such as India, Pakistan and Bangladesh continue to wait in the wings for reasonable prices. However, major Bangladeshi mills have booked bulk Japanese cargoes from today's Kanto tender.

India

Indian scrap buyers are less active in the market today. Buyers are looking for clear price direction. Interestingly, people are looking for domestic substitutes at a workable price. Imported scrap prices are now at $440-445/t CFR.

"The near-term outlook is not clear as price fluctuations may be seen ue to abrupt behaviour of imported scrap prices," a trader source said.

Pakistan

Pakistan's imported scrap market remained muted on the back of a sluggish domestic market. Liquidity issues, LC opening restrictions, and dull finished steel demand kept imported scrap trade slow. Buyers are pessimistic about any signs of market improvement ahead of monsoon.

Further, steel producers are waiting for announcements to be made in the country's General Budget.

Bangladesh

Major Bangladesh-based steel producers booked a 15,000 t bulk Japanese cargo consisting entirely of H2 material. The deal was concluded in today's Kanto scrap export tender at JPY 48,167/t ($346/t) FAS. Interestingly, Bangladesh presneted the highest bid for the month.

On the other hand, containerised scrap buyers are less active in the market as mills are working with low production capacity due to limited electricity supply. Some Dhaka-based mills are likely to shut down. However, imported scrap offers have moved up for UK/EU-origin material, yet buyers are not ready to accept these offers.

Turkiye

Trade activity slowed down in Turkiye's imported scrap market towards the weekend as buyers were confronted with the challenge of currency depreciation. Negotiations were sporadic in the ferrous scrap market as steel producers took time to observe the market situation. On the other hand, suppliers are holding their offers and are not in a hurry to quote fresh offers.

Price assessments

• European shredded scrap offers into India stood at $440-445/t CFR Nhava Sheva, unchanged d-o-d.
  
  
• UK-origin shredded scrap prices into Bangladesh were assessed at $465/t CFR Chattogram, unchanged d-o-d.
  
  
• UK-origin shredded scrap prices into Pakistan remained unchanged at $440/t CFR Qasim.