South Asia: Imported scrap offers continue to rise d-o-d despite sluggish activities

The ferrous scrap market in South Asia witnessed a slight increase for the day, whereas scrap prices in Turkiye declined for two consecutive days amid weaker response from steelmakers. Indian buyers witnessed slow demand in the finished steel segment, which made them procure need-based materials. Pakistani buyers remained on hold as higher offers from Europe made them skeptical about acquiring materials.

Shredded scrap offers increased by $1-2/t in India, Pakistan, and Bangladesh whereas, bulk US HMS (80:20) offers to Turkiye declined by $3/t d-o-d.

Market overview

India: In India, indicative prices for shredded scrap from Europe were reported at $426-430/t CFR, while from the United States offers were at $422-425/t CFR. Offers for HMS (80:20) scraps stood at $404-410/t CFR from Europe and ranged between $416-420/t CFR from Australia.

As per market sources, the Indian market is currently in a slow phase. Those who are buying imported scrap because of the quality as domestic scrap quality fluctuates which affects the yield during production. Indian buyers are likely to resist higher offers from now onwards.

As per a trader source, a bulk vessel from New Zealand is likely to connect towards the end of Dec'23; Majorly, inquiries are slow, but sellers are not pulling their offers down."

Pakistan:In Pakistan, the imported scrap market remained weaker as offers remained higher from Europe which were at $435-440/t CFR Qasim. Domestic rebar offers were heard at around PKR 264,000-270,000/t Exw. Local billet offers were heard at around PKR 212,000/t exw and mill-wise billet offers varied from PKR 224,000-232,000/t exw.

Domestic scrap offers were heard at around PKR 155,000-165,000/t exw basis, depending on regions.

Bangladesh: In Bangladesh, market activities remained relatively slow in containerised scrap as shredded scrap offers from Europe were heard at around $445-455/t CFR Chattogram, and HMS (80:20) scraps were reported at $426-432/t CFR.

Winter conditions and the upcoming elections in 15 days have led to lower demand and sales. European markets are currently closed with no major offers. Brazil-origin HMS (80:20) were offered at $410-415/t. For scrap, low-grade (HMS quality) is at BDT 58,000-63,000/t, and high-grade (PNS quality) is at BDT 62,000-68,000/t. Billet offers stand at BDT 73,000/t (3m) and BDT 75,000/t (6m) exw Dhaka. Rebar prices, ex-works Dhaka, are BDT 82,000/t for small mills, BDT 84,000/t for medium mills, and BDT 89,000-92,000/t for major mills.

Turkiye: Turkish imported scrap prices are currently stagnant, and the market direction is uncertain due to reduced mill activity.

Some suppliers are waiting to see if Turkish buyers return, with hopes of prices reaching the high of $420/t or even $430/t CFR for HMS (80:20). Overall, the sentiment indicates a weak appetite for scrap at the moment. Baltic offers hover around $430/t CFR, while US offers exceed $430/t CFR despite a lack of buyer interest.

Recent deals

Around 650 t of West African-origin HMS (80:20) was sold at $394/t, CFR Mundra.

Around 200 t re-rollable scrap from the Middle East was sold at $448/t CFR West Coast.

Approximately 250 t HMS (90:10) from the Middle East was sold at 413/t CFR West Coast.

A parcel of 622 t UK-origin HMS (80:20) (ready to deliver) material was booked at $415/t CFR Chennai.

Price assessments

India: The UK-origin shredded scrap indicatives rose by $2/t to $430/t CFR Nhava Sheva today.

Pakistan: The UK-origin shredded scrap indicatives were up by $1/t to $435/t CFR Qasim today.

Bangladesh: The UK-origin shredded scrap prices were assessed at $450/t CFR Chattogram, up by $1/t d-o-d.

Turkiye: The US-origin HMS (80:20) bulk prices were assessed at $427/t CFR Turkiye, down by $3/t d-o-d.

Outlook: The Turkish market is expected to remain subdued this week as many mills have already secured cargoes for January. In the South Asian market moderate buying activities are expected across countries like India and Bangladesh, despite resistance from small-scale buyers.