South Asia: Imported scrap market subdued as monsoon sets in, Eid holidays approach

• India: Demand remains soft, buyers book small parcels
  
  
• Pakistan: Banks unlikely to allow LCs but pre-holiday booking expected
  
  
• Bangladesh: Buyers remain on the sidelines
  
  

The South Asian scrap market witnessed a slow start to the week. Major Islamic countries which are scrap buyers such as Turkiye, Bangladesh, and Pakistan continued to stay away from the imported scrap market owing to the Eid holidays. Nevertheless, Indian scrap buyers remained active in the market with small-parcel bookings, although the onset of monsoon may slow down demand from the downstream sector.

Market overview

• India: Indian buyers were active in the market with a slow start to the week. Some inquiries were heard as offers declined. However, steel producers expect further price correction as heavy rainfall is forecast to lash western and central India. Notably, the domestic semi-finished steel market was slow in the last trading session which, coupled with limited trading in scrap, prompted suppliers to reduce offers.
  
  
• Pakistan: As the market opened, offers for shredded scrap were quoted at $425/t. However, deals remained absent. However, sources believe that buyers may book some quantity before the holidays as offer levels are viable currently. On the other hand, considering the fact that June is a closing month, banks may be less likely to allow LC openings. Hence, buyers may need to wait before concluding some deals.
  
  

"Imports are way cheaper than domestic material, it seems, but LC is the hurdle for buyers in the current circumstances," said a steel producer.

• Bangladesh: Prominent Bangladesh-based buyers are less likely to show interest for imported scrap as the domestic economic situation remains unsupportive.
  
  
• Turkiye: Trade activity remains on hold in the ferrous scrap market. Steel producers are taking time to evaluate the situation amid continuing depreciation of the lira and weak finished steel sales.
  
  

Turkish imported ferrous scrap prices have increased by $2/t in a recent deal concluded from the US. A West Marmara-based mill secured cargo for July shipment comprising HMS (80:20), shredded, and bonus at $380/t and $400/t each on CFR Turkiye, respectively.

Recent scrap prices continued to remain volatile amid unstable economic conditions in the country. ($1=TRY 25.95).

Recent deals

UK/EU-origin shredded scrap (2,000 t) was sold to Mundra, while 1,000 t was sold to Nhava Sheva at $420-425/t CFR.

Price assessments

• India: UK-origin shredded offers stood at $423/t CFR Nhava Sheva, down $2/t from the last closing.
  
  
• Pakistan: UK-origin shredded offers were at $425/t CFR Qasim, unchanged from Friday.
  
  
• Bangladesh: UK-origin shredded offers stood at $450/t CFR Chittagong, stable compared with 23 June.
  
  
• Turkiye: US-origin HMS 1&2 (80:20) prices were assessed at $380/t CFR Turkiye, up $2/t compared with Friday last.
  
  

Outlook

The South Asian scrap market remains subdued with the onset of the monsoon season and ongoing economic challenges in some of the key countries. However, there are signs that demand may pick up in the coming weeks, as buyers look to secure supplies ahead of the holidays.