South Asia: Imported scrap offers increase d-o-d amid active buying interest
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Indian buyers ramp up scrap purchases ahead of festive season: Indian buyers showed increased interest in securing imported scrap, driven by restocking needs and positive domestic steel market sentiment. Indicative offers for shredded scrap from the US and the UK/Europe were assessed at $400-405/t CFR Nhava Sheva, while HMS (80:20) from West Africa and Europe was offered at $380-385/t CFR.
Market participants observed a surge in demand for imported scrap, with buyers actively floating inquiries to restock ahead of the festive season in India, expecting an upswing in domestic steel demand.
A trader remarked, "There's been a noticeable rise in offers today for shredded and HMS from Europe, Australia, and the Middle East, with shredded reaching $405-410/t into India."
Moderate demand for imported scrap in Pakistan amid cautious market sentiment: Demand for imported scrap in Pakistan remained moderate on Thursday, as buyers exercised caution due to the recent surge in seaborne market offers. Purchasing was limited to immediate needs, driven by weak finished steel sales in the domestic market and shrinking profit margins. A steel mill official commented, "Global market sentiment is bullish, so prices may continue to rise in the coming days."
Another mill representative said, "Payment flows are tight, and margins are squeezed. Steel sales are slow, and we've already booked enough imported scrap. Our production is currently running at around 40%, so we're watching the market closely before planning any further purchases."
Quiet market conditions prevail as mills hold sufficient inventory: Bangladesh's imported scrap market remained quiet, with mills holding sufficient inventory. There's little interest in fresh inquiries for scrap from Australia, UAE, Hong Kong, or the US, as mills plan to reassess by the end of October, depending on steel demand and production levels. Current offers for PNS from Singapore are at $400/t, Malaysia's Holo bundles at $380/t, and Brazil's HMS (80:20) at $360/t.
Local scrap prices were assessed at HMS (low grade) at BDT 52,000/t and shipbreaking scrap at BDT 52,000/t. Rebar prices in Dhaka are around BDT 82,000-85,000/t, and in Chattogram at BDT 87,000-88,000/t, though the market remains inactive due to slow demand. Economic recovery, following the monsoon and IMF support, is expected to take time, keeping the market in a cautious, wait-and-see mode.
Turkish scrap prices climb amid strong demand, bullish sentiment: Turkish imported scrap prices continued their uptrend, driven by strong mill demand and bullish market sentiment. US-origin HMS (80:20) was assessed at $378/t CFR, up by $8 on the day. Indicative values for US/Baltic-origin scrap were shared between $377-380/t CFR, with deals reported but not fully confirmed. US-origin shredded and PNS scrap were booked at $396.50/t CFR by a Samsun mill.
Sellers held back on offers, targeting higher prices, with Baltic-origin HMS (80:20) offers reaching $385/t CFR. Strong domestic rebar sales and the US port strike fuelled expectations of further price increases. Mills are actively seeking scrap, but sellers are waiting for more favourable pricing.
Price assessments
India: UK-origin shredded scrap indicatives inched up by $2/t to $401/t CFR Nhava Sheva compared to the last closing on Tuesday.
Pakistan: UK-origin shredded indicatives rose by $3/t to $403/t CFR Qasim compared to the last closing on Tuesday.
Bangladesh: UK-origin shredded prices were at $404/t CFR Chattogram, up by $1/t compared to the last closing on Tuesday.
Turkiye: US-origin HMS (80:20) bulk prices edged up by $8/t to $378/t CFR Turkiye compared to the last closing on Tuesday.
