South Asia: Imported scrap market turns positive as Turkiye buyers return

The global scrap market was depressed until yesterday, and limited transactions were recorded. Today, the market rebounded with the return of Turkish steel producers who concluded a couple of deals at elevated prices.

Following the trend, Indian buyers raised inquiries for imported scrap, but high offers saw less acceptability. Meanwhile, Pakistani and Bangladeshi buyers were less active due to concerns in their domestic markets.

Market overview

• India
  
  

Indian imported scrap buyers moved to the sidelines as offers increased following the Turkish deals. However, buyers were not ready to accept high offers, and offering a bid price of $430-435/t. No deal was concluded today.

Fresh offers were heard at $440-445/t CFR levels. Market participants believe this is a temporary hike, and prices may come down in the near term due to low acceptance.

• Pakistan
  
  

Steel producers in Pakistan continued to keep silence and very few deals were heard to have been concluded at workable prices. Offers from the suppliers have increased to $440/t, but the buyers' resistance has kept trade activities low.

Furthermore, the LC issues and sluggish finished steel demand in the domestic market kept market sentiments negative.

• Bangladesh
  
  

Bangladesh's imported scrap buyers were cautious as the national economy and liquidity issues are on edge. Additionally, limited electricity supply due to coal shortages in the country kept steel producers under pressure as production was going on at a low capacity. This has pushed up rebar prices.

• Turkiye
  
  

Turkish steel producers have booked a couple of deals recently at $385-390/t. Prices have increased significantly owing to the depreciating national currency. The lira has lost almost 8% of its value against the US dollar within the past 24 hours. Currently, the exchange rate stands at 23.13 against $1, hitting a record-low level.

According to SteelMint's assessment, USA-origin HMS 1&2 (80:20) stood at $390/t CFR Turkiye, increasing marginally by $2/t from the previous day.

Recent deal

• Around 2,000 t of UK/EU-origin shredded material has been booked at $436/t CFR.
  
  

Price assessments

• Europe-origin shredded scrap offers into India stood at $440-445/t CFR Nhava Sheva, slightly up by $3/t 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 from the previous day, standing at $440/t CFR Qasim.