South Asia: Imported scrap market slightly down on recent Turkish deal

The imported scrap market in South Asia witnessed lesser transactions. Buyers are adopting a cautious approach and waiting for price clarity due to the prevailing market instability. This has resulted in reduced activity in Pakistan and Bangladesh, where domestic demand remains unsupported. However, Indian buyers continue to make small bookings.

India

Imported scrap buyers in India are actively engaging in the market, securing small parcels of materials at favourable prices. Scrap offers have slightly decreased, prompting buyers to continue their bookings.

However, there is a general expectation among buyers for prices to drop below the $420-425/t level. Market players noted that deals are now being concluded at lower prices compared to earlier offers.

Pakistan

Imported scrap buyers in Pakistan are exercising caution due to the uncertainty in the domestic market. The fluctuating currency exchange rate has further impacted trade activities in the imported scrap sector. The exchange rate is currently at an all-time low, and the issue of letter of credit (LC) remains significant for steel producers.

Bangladesh

Imported scrap markets in Bangladesh are witnessing limited activity, mirroring the downward trend in domestic finished steel demand and liquidity challenges. Market players are hesitant to book fresh material, particularly in light of the upcoming Eid holidays. Steel producers are facing pressure to sell finished steel to maintain cash flow.

While offers for bulk cargo have seen a slight increase recently, negotiations in the bulk market have remained inactive.

Turkiye

Turkish deep-sea imported ferrous scrap prices have experienced a slight decline in recent deals but have largely remained within a specific range. Market activity has been limited during this period. A steel producer based in West Marmara has recently booked a bulk cargo from the US, including bonus at $407/t and HMS (80:20) at $387/t CFR levels. Some deals have also been reported from Europe at $388/t CFR levels.

SteelMint's assessment for USA-origin HMS 1&2 (80:20) is at $385-390/t CFR levels, inching down by $3/t d-o-d.

Price assessments

• European shredded scrap offers into India stood at $436-440/t CFR Nhava Sheva, down by $4/t d-o-d.
  
  
• UK-origin shredded scrap prices into Bangladesh were assessed at $460/t CFR Chattogram, down by $2/t d-o-d.
  
  
• UK-origin shredded scrap prices into Pakistan were assessed at $435-440/t CFR Qasim unchanged from the last offers.