South Asia: Imported scrap offers largely stable despite a slight uptick in Turkiye

Today, the South Asian ferrous scrap market showed a mixed trend. In India, market activities slowed down, influenced by the availability of cheaper domestic material and discrepancies in offers and bids. In Pakistan and Bangladesh, constraints related to Letters of Credit (LC) and subdued steel demand in the domestic market persisted, affecting the demand for imported scrap in these countries.

Containerised shredded scrap offers remained stable in India and Bangladesh but dropped by $1/t in Pakistan. In contrast, US bulk HMS (80:20) offers to Turkiye increased by $2/t d-o-d.

Market overview

India: The demand for imported scrap in India has been slow, as buyers are staying on the sidelines, partly due to the availability of cost-effective scraps domestically and also because of bid-offer disparities. Shredded scrap from Europe is indicative at $415/t CFR Nhava Sheva, while offers for HMS (80:20) from Europe and West Africa are reported in the range of $380-390/t CFR Chennai and Nhava Sheva.

In this context, one trader expressed that, "The Indian market is currently experiencing a lack of activity, with no transactions or significant interest. As December approaches, there is anticipation that the situation will further tighten. Nevertheless, there is optimism about a potential increase in buyer interest in the coming week."

Meanwhile, another trader noted that, "There are presently no offers due to a substantial disparity in prices, leading to a lack of ongoing deals in the market."

Pakistan: In Pakistan, need-based buying was observed recently due to a sluggish domestic steel market. Additionally, buyers encountered issues in opening Letters of Credit (LCs), resulting in importers being unable to book fresh materials. Shredded scrap offers from Europe were assessed in the range of $418-422/t CFR Qasim, with workable levels, according to buyers, standing at around $414-417/t CFR.

Bangladesh: In Bangladesh, the purchasing activities for imported scrap were sluggish today, attributed to the country's low foreign reserves and challenges in opening Letters of Credit (LC). Offers for shredded scrap from Europe were assessed at $432-435/t CFR Chattogram, while HMS (80:20) were reported at $410-416/t CFR.

Buyers are notably opting to book materials in containers rather than bulk, primarily due to constraints in opening Letters of Credit (LC), as mentioned by a trader based in Bangladesh during a conversation with SteelMint. Despite this preference, no major deals have been reported so far.

Turkiye: Turkish import scrap ferrous scrap prices are slightly rose as sellers targeted high.Tradable values for US/Baltic-origin HMS (80:20) range between $390-$395/t CFR. The recent strength of the euro against the dollar contributes to higher seller targets from European recyclers. US recyclers limit scrap offers to Turkiye due to elevated freight rates. Market sentiment is bullish for US exports of HMS (80:20) amid anticipated domestic settlements, although Turkish mills resist increased seller targets reported by EU/US recyclers.

In recent developments, two Turkish steel mills finalised bulk cargo transactions: one Mediterranean-based mill secured HMS (80:20) at $388/t, and another West Marmara-based mill closed a deal at $386/t for HMS (80:20) and $411/t for bonus scrap, all on a CFR Turkiye basis. As the year-end holidays approach, Turkish mills actively seek to boost scrap booking.

Recent deals

• Approximately 160 t of HMS (80:20) were secured from West Africa at $383/t CFR west coast India.
  
  
• About 550 t of HMS (good quality) material was booked from West Africa at $395/t CFR west coast India.
  
  
• Around 700 t of HMS 1 was procured from Bahrain at $405/t CFR west coast India.
  
  
• A parcel of 500 t of shredded scraps were booked from Europe at $415/t CFR Qasim.
  
  

Price assessments

India: UK-origin shredded scrap indicatives were assessed as stable at $415/t CFR Nhava Sheva.

Pakistan: UK-origin shredded scrap indicatives edged down by $1/t to $416/t CFR Qasim today.

Bangladesh: UK-origin shredded scrap prices were kept unchanged at $435/t CFR Chattogram today.

Turkiye: US-origin HMS (80:20) bulk prices stood at $392/t CFR Turkiye, up by $2/t d-o-d.

Outlook

Imported scrap offers are likely to remain range-bound, as there is limited buying interest at the current price levels in South Asian markets, excluding Turkiye. It is worth noting that Turkiye has recently secured ample volumes, and any slowdown in Turkiye's buying activity may prompt sellers to adjust their offers. In India, sources are optimistic about a potential positive uptick in activities in the coming week.