South Asia: Imported scrap market uncertain, offers edge down by up to $3/t d-o-d

The South Asian ferrous scrap market extended its downward trajectory today, primarily influenced by subdued trading activities. In India, buyers maintained a cautious stance, given discrepancies in bid and offer prices. Pakistan witnessed selective purchasing driven by a slowdown in the domestic finished steel sector. In Bangladesh, the aftermath of elections and a sluggish finished sector contributed to limited buying activities.

Shredded scrap offers saw a decline of $2-3/t in both India and Bangladesh while remaining stable in Pakistan. Meanwhile, Turkey's bulk HMS (80:20) offers from the US also remained unchanged.

Market overview

India: Buyers in India continued to stay on the sidelines, influenced by the gap between bids and offers. Shredded scrap was indicated to be offered at $410-415/t CFR Nhava Sheva, while HMS (80:20) was reportedly priced at $394-398/t CFR.

Pakistan: In Pakistan, the appetite for imported scrap witnessed a deceleration, linked to the lethargic state of the domestic finished steel market amid the winter season. Offers for shredded scrap from Europe were cited at $435-440/t CFR Qasim.

On the domestic front, rebar prices were noted within the range of PKR 260,000-265,000/t exw, while scrap prices were reported at PKR 160,000-170,000/t exw.

Bangladesh: The market in Bangladesh has witnessed a deceleration, primarily attributed to the consequences of recent elections, subsequent changes in the ministry, and the resulting political unrest.

Additionally, a persistent dollar crisis has added to the challenges. Offers for imported shredded scrap from Europe were assessed at $435-440/t CFR Chattogram, while HMS (80:20) prices were noted at $410-415/t CFR.

A trader commented, "Over the last month and a half, the demand for finished steel in the local market has significantly declined due to the impact of elections, and no new government projects have been announced during this period."

Turkiye: Turkish imported ferrous scrap prices remained stable, with market participants expressing mixed sentiments about the near-term outlook with HMS (80:20) at $422/t CFR, unchanged from the previous day. Indicative tradable values for US/Baltic-origin HMS(80:20) ranged between $420-$423/t CFR, while an unconfirmed offer for US-origin HMS (80:20) was reported at $422/t CFR.

Recent deals

• Approximately 3,000 t of HMS (80:20) scraps were booked from Australia at $427/t CFR Chattogram.
  
  
• A parcel of 500-t of AB bundles were sourced from Hong Kong at $405/t CFR Chattogram.
  
  
• About 2,000 t of shredded scraps were sourced from Australia at $435/t CFR Chhatogram.
  
  
• Around 500 t of shredded scraps were booked from Europe at $440/ CFR Qasim.
  
  
• About 500 t of shredded scraps were booked from Europe at $435/t CFR Qasim.
  
  

Price assessments

India: UK-origin shredded scrap indicatives were down by $3/t to $415/t CFR Nhava Sheva.

Pakistan: UK-origin shredded scrap indicatives were assessed stable at $437/t CFR Qasim.

Bangladesh: UK-origin shredded scrap prices were assessed at $438/t CFR Chattogram, down by $2/t d-o-d.

Turkiye: US-origin HMS (80:20) bulk prices were assessed at $422/t CFR Turkiye, stable d-o-d.

Outlook

Imported scrap offers are expected to decrease further due to a lack of buyer confidence at the current price levels. Additionally, the upcoming February elections in Pakistan are poised to negatively affect steel sales in the market, resulting in a reduction in scrap consumption.