South Asia: Imported scrap market slows down on sluggish trade

The South Asian ferrous scrap market has experienced a slowdown in trade flows due to sluggish performance of major market drivers such as Turkiye, India, Bangladesh, and Pakistan. This lack of activity can be attributed to Ramadan. The observance of Ramadan brought silence into the market. However, sources predicted that the market will pick up momentum once Eid holidays come to an end.

India

In India, the demand for imported ferrous scrap remained subdued, with buyers showing minimal activity. Current offers for the imported material only seemed to attract interest of major players. As a result, demand remained stagnant.

Bangladesh

Similarly, in Bangladesh, market sentiments remained "gloomy" despite the country booking the entire 15,000-tonne bulk cargo at the Kanto tender at JPY 50,556/t FAS Japan today. The holy month of Ramadan has slowed down domestic demand from downstream markets due to limited working hours, resulting in sluggish demand. It is noteworthy that Bangladesh remained the sole buyer of bulk cargo in the Kanto tender that concluded this month.

Pakistan

Meanwhile, Pakistan's scrap market was quiet with limited quantity deals continuing. Market participants expect trade activities will pick up after Eid holidays.

Overall, the South Asian ferrous scrap market appeared to be experiencing a "temporary slowdown" due to the Ramadan holidays. However, the market is expected to regain momentum in the near future.

Turkiye

Turkish ferrous scrap import prices were almost firm as mills continued to hold back, waiting for lower offers, SteelMint noted.

Recent deals

• Around 500 t of Kuwait-origin HMS super were traded yesterday at $465/t CFR west coast India.
  
  
• Around 500 t of Yemen-origin HMS was traded yesterday at $437/t CFR west coast India.
  
  
• Around 250 t of Dubai-origin HMS was traded yesterday at $450/t CIF west coast India.
  
  

Price assessments

• Europe-origin shredded scrap offers into India stood at $465/t CFR Nhava Sheva, up by $5/t d-o-d.
  
  
• UK-origin shredded scrap prices into Bangladesh stood at $480/t CFR Chattogram, unchanged d-o-d.
  
  
• UK-origin shredded scrap prices in Pakistan stood at $462/t CFR Qasim, unchanged d-o-d.