South Asia: Imported scrap offers down by $3/t d-o-d amid weak demand

Today, South Asian imported ferrous scrap prices displayed a downward trend. In India, buyers remained cautious and refrained from participating in the imported market due to price disparities. Meanwhile, in Pakistan, the combination of sluggish sales of finished steel in the domestic market, influenced by winter conditions, and uncertainties in imported scrap price trends have led to a more selective and need-based approach to buying.

Shredded scrap offers edged down by $2-3/t in India, Pakistan, and Bangladesh. Turkiye's bulk HMS (80:20) offers from the US also edged down by $2/t d-o-d.

Market overview

India: In the Indian market, buyers continued to observe from the sidelines due to the disparity between bid and offer prices. The predominant inquiries revolved around materials from Southeast Asia and Australia, given their shorter voyage times and lower risk factors. Indicative offers for shredded scrap from Europe were reported at $414-418/t CFR Nhava Sheva, while HMS (80:20) was observed at $395-400/t CFR.

A trader said, "The market is currently moving at a slower pace, and we are holding onto our previous offers as there seems to be a lack of interest in the market at the moment."

Pakistan: The demand for imported scrap in Pakistan is relatively moderate, driven by a cautious approach and reliance on need-based procurement, reflecting a lack of confidence in current offers. Shredded scrap offers from Europe were reported within the range of $435-440/t CFR Qasim, while those from the Middle East were around $440-445/t CFR. Additionally, HMS scraps from the Middle East were offered at $410/t CFR Qasim.

Bangladesh: In Bangladesh, market activities have been constrained, primarily attributed to recent elections and the subsequent slowdown. Shredded scrap offers from Europe have been noted at $435-440/t CFR Chattogram, while HMS (80:20) is reportedly priced at $415-420/t CFR.

Offer for HMS (90:10) scraps from Australia were assessed at $415/t CFR Chattogram.

Turkiye: In the current market scenario, despite reports of several deals, Turkish mills displayed reluctance to engage with foreign scrap suppliers. Sell-side sources highlighted limited scrap availability in Europe and the US, with American suppliers facing challenges due to lack of collection. Offers for US-origin HMS (80:20) were reported between $427-$429/t CFR.

However, buyers insisted that scrap prices might soften in the near term due to mill pressure and could be influenced by the recent euro devaluation against the dollar. A Turkiye-based mill source suggested a workable range of $420-$425/t CFR for HMS (80:20),emphasising the mills' reluctance to accept higher prices.

Recent deals

• Around 2,000 t of shredded scraps were booked from Europe at $435/t CFR Qasim.
  
  
• About 500 t of shredded scraps were sourced from Australia at $435/t CFR Chattogram.
  
  

Price assessments

India: UK-origin shredded scrap indicatives were down by $2/t to $418/t CFR Nhava Sheva.

Pakistan: UK-origin shredded scrap indicatives were assessed at $437/t CFR Qasim, down by $3/t d-o-d.

Bangladesh: UK-origin shredded scrap prices were assessed at $440/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, down by $3/t d-o-d.

Outlook

In the near-term, imported scrap offers are likely to see further corrections due to the hesitancy of buyers, stemming from uncertainties surrounding current price trends and the sluggish sales of finished steel in the domestic market across major South Asian countries.