South Asia: Imported scrap offers continue to fall; Bangladesh secures bulk cargoes

Today, the South Asian ferrous scrap market witnessed a downward trend in prices. Indian buyers stayed cautious, while Pakistan and Bangladesh were comparatively active due to Ramadan and post-Ramadan demand, seizing the opportunity to book imported scrap as needed. Shredded scrap offers declined by $3-6/t across India, Pakistan, and Bangladesh. However, US bulk HMS (80:20) offers to Turkiye remained unchanged d-o-d.

Overview

Today, the imported scrap market in India remained quiet due to a lack of buyer interest, while suppliers showed a stronger focus on Pakistan and Bangladesh due to active buying activity in those nations. Shredded scrap was offered at approximately $410-415/t CFR from Europe and $405-410/t CFR from the US, while HMS (80:20) was priced at $385-390/t CFR.

In Pakistan, despite a sluggish domestic rebar market, imported scrap purchases persisted at discounted offers. Steel mills opted to secure materials ahead of Ramadan, potentially aiming to benefit from increased volume if prices continue to drop. Indicative offers for shredded scrap from the UK/Europe were observed at $425-430/t CFR.

In response to a significant drop in prices in the Turkish market, Bangladeshi steel mills have notably boosted their procurement of deep-sea scrap. This strategic move is timed to coincide with Bangladesh's peak construction season, in upcoming months when steel demand is at its highest. The recent decline in scrap prices has allowed mills to meet their immediate scrap needs before the onset of the holy month of Ramadan in March, while also gearing up to meet post-Ramadan demand.

Notable bulk deals include a booking from the US West Coast at $410/t CFR and subsequent bookings from the same region. Although a rumour circulated about a booking at $402/t CFR: confirmation is pending. Bangladeshi mills are now eyeing April deliveries, foreseeing increased steel demand, with a preference for bulk cargoes over containers. Despite government assurances, challenges persist in obtaining letters of credit, impacting operational efficiency, according to industry sources. In containers, shredded scrap offers from UK/Europe and Australia were heard at $425-430/t CFR while HMS (80:20) were at $410-415/t CFR.

Turkish import ferrous scrap prices held steady at $395/t CFR, unchanged from the previous day. Caution prevailed among both buyers and sellers, with Turkish mills citing slow rebar sales and sellers facing challenges in acquiring scrap at reduced prices. Uncertainty loomed over European prices, as recyclers and agents expressed ambiguity regarding the near-term price direction. Meanwhile, in the US, domestic scrap settlements for March were anticipated to experience localised drops, while exported scrap grades were expected to see milder decreases due to stronger demand driven by rebar mills' robust programs. Some traders adopted a bearish outlook, foreseeing a potential decline in Turkish scrap import prices to $385/t CFR in the coming weeks, although the market's response remained uncertain.

Price assessments

India: UK-origin shredded scrap indicatives were assessed at $410/t CFR Nhava Sheva, down by $3/t d-o-d.

Pakistan: UK-origin shredded scrap indicatives were assessed at $426/t CFR Qasim, down by $4/t d-o-d.

Bangladesh: UK-origin shredded scrap prices were assessed at $425/t CFR Chattogram, down by $6/t d-o-d.

Turkiye: US-origin HMS (80:20) bulk prices were assessed at $395/t CFR Turkiye, unchanged d-o-d.