South Asia: Imported scrap offers exhibit mixed trend; Bangladesh secures bulk deal
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Today, the South Asian ferrous scrap market showed a mixed trend. In India, market activities moderated as cautious buyers navigated a slowdown in the domestic steel sector. In Pakistan, the absence of firm offers mirrored the sluggishness in the local steel market. Bangladesh, however, witnessed moderate activity, highlighted by a significant bulk deal from the US. Turkish imported ferrous scrap prices experienced a slight increase, with sellers maintaining firm positions despite limited rebar sales by Turkish mills.
Notable price movements included a $2/t decrease in shredded scrap offers in India, while Pakistan and Bangladesh saw increases of $2/t and $1/t respectively. US bulk HMS (80:20) offers to Turkiye rose by $1/t d-o-d.
Overview
India: Today, market activities in India exhibited moderation as buyers exercised caution amidst a slowdown in the domestic steel sector. Over the past fortnight, there have been numerous bookings, but now purchases are being made based on immediate requirements. Prices for shredded scrap from the US and Europe were observed around $420-425/t CFR, while HMS (80:20) from Europe and West Africa ranged from $395-405/t CFR.
According to a trader, "In the past two weeks, there was significant activity, but now buyers are negotiating $10/t less. Demand for finished steel is sluggish. When comparing primary primary vs secondary steel prices, the price gap is only INR 1,000-1,500/t, so buyers are inclined towards opting for prime quality material."
A steel mill official from southern India stated, "The market appears relatively stable, with fewer suppliers due to sluggish collection rates."
Pakistan: In Pakistan, the domestic steel market's sluggishness resulted in the absence of firm offers or bids for scrap. However, indicative offers for shredded scrap from Europe were noted at $430-435/t CFR Qasim.
Bangladesh: Today, the Bangladeshi imported ferrous scrap market displayed moderate activity, highlighted by a significant bulk deal reportedly concluded from the US. This deal encompassed approximately 27,000 t of mixed scrap, with around 13,000 t being HMS (90:10) priced at approximately $403/t CFR Chattogram, and the remaining 14,000 t comprising PNS scrap priced at around $414/t CFR.
In containerised shipments, buyer interest remains limited, resulting in minimal bookings aligned with immediate requirements. Material booked during January-February is now arriving, attributed to delays in LC approvals, according to market sources. Indicative offers for containerized shredded scrap from Europe/the UK were heard at $425-430/t CFR Chattogram, while HMS (80:20) stood at $400-405/t CFR.
Turkiye: Turkish imported ferrous scrap prices saw a slight increase, with sellers maintaining a firm stance despite limited rebar sales by Turkish mills. Offers for bulk HMS (80:20) scrap from the US stood at around $385/t CFR, marking a $1/t rise. However, buy-side sentiment remained resistant to scrap price hikes due to sluggish steel sales in Turkiye during the week. Turkish exported rebar prices declined to $585/t FOB. Sellers stood firm, with indicative offers for HMS (80:20) ranging between $382-387/t CFR. A shortage of scrap and slow collection was noted by a shortsea supplier. Deals for Romania-origin HMS (80:20) were reportedly booked at various prices, and indicative tradable values for shortsea scrap ranged from $365-$370/t CFR. Turkish imports of shortsea scrap were assessed at $366.50/t CFR, showing a $1.50/t increase. Late-night around 4 to 5 deep-sea deals originated from Europe and US were heard to be concluded at around $380-382/t price range on a CFR basis.
Price assessments
India: UK-origin shredded scrap indicatives were assessed at $425/t CFR Nhava Sheva, down by $2/t d-o-d.
Pakistan: UK-origin shredded indicatives were assessed at $433/t CFR Qasim, slightly up by $2/t d-o-d.
Bangladesh: UK-origin shredded prices were assessed at $425/t CFR Chattogram, up by $1/t d-o-d.
Turkiye: US-origin HMS (80:20) bulk prices were assessed at $385/t CFR Turkiye, up by $1/t d-o-d.
Outlook
In the near term, imported ferrous scrap offers are expected to stay firm, driven by a resolute stance from sellers amid sluggish collection rates in their respective domestic markets. In India, we anticipate increased bookings, albeit at a pace aligned with immediate requirements, driven by restocking demand ahead of the monsoon season and constrained domestic supply. Pakistani buyers may adopt a wait-and-watch approach due to sluggish demand in the downstream steel sector. Bangladeshi buyers are likely to continue booking amidst improved demand for finished steel, although challenges with LC approvals may persist.
