South Asia: Imported scrap offers largely stable in India, Pakistan; Turkiye witnesses a downtrend

The South Asian ferrous scrap market exhibited general stability, with a limited number of active buyers. In India, persistent price disparities discouraged active buyer participation. Meanwhile, in Pakistan and Bangladesh, the market sentiments were influenced by slow finished steel sales and political unrest.

Shredded scrap offers held steady in India and Pakistan, with a slight increase of $2/t d-o-d in Bangladesh.

Market overview

India: In India, the appetite for imported scrap has stayed low, with primary purchasers favouring domestic procurement due to more favourable pricing. Indicative quotes for shredded scrap from Europe were observed in the range of $418-422/t CFR Nhava Sheva, while HMS (80:20) was priced at $395-400/t CFR.

According to a steel mill official, "We have not acquired imported materials in quite some time due to the price gap."

A trader said, "Inquiries from India are notably scarce, with a lack of buyer presence in the market. Indications for the Middle East HMS range from $400 to $405/t, but sellers are struggling to maintain global price quotes due to a subdued response from Indian buyers."

Furthermore, industry participants are expecting the arrival of several bulk vessels at Indian ports, originating from the USA and Venezuela. However, the exact quantity of these vessels is yet to be confirmed.

Pakistan: In Pakistan, the demand for imported scrap has been sluggish, mainly due to slow sales in the finished steel sector. Shredded scrap from Europe is offered at $435/t CFR Qasim, with a comparable range of $435-445/t CFR from the Middle East. Furthermore, HMS scraps from the Middle East are being offered at $400-405/t CFR, while those from Canada and the US are reported to be around $435/t CFR.

Bangladesh: The market in Bangladesh has experienced a slowdown in activities due to the recent elections. Indicative offers for shredded scrap from Europe were evaluated at $440/t CFR Chattogram, while HMS (80:20) was priced at $420/t CFR.

In the local market, prices for domestic scrap were observed in the range of BDT 61,000-64,000/t exw, billets were at BDT 77,000/t, and rebars were quoted at BDT 86,000-87,000 exw.

Turkiye:Participants in the Turkish market noted a broad spectrum of tradable values for material originating from the US and the Baltic. The market is presently characterized by confusion, stemming from a surge in sell-side offerings. This has resulted in a substantial gap between booked deals and recent offers.

Offers for the US-origin HMS (80:20) remained at $425/t CFR and above, deemed unworkable for Turkish mills. Stability in prices is anticipated in the near term, with strong cargo availability expected to meet demand from Turkish mills yet to re-stock for February shipments.

Today, a Europe-origin deal was confirmed at $418/t CFR for HMS (80:20) and $443/t CFR for shredded scrap, booked by a West Marmara-based mill.

Recent deals

• Approximately 300-400 t of HMS (80:20) scraps were booked from Bahrain at $398-400/t CFR Nhava Sheva.
  
  
• Around 500 t of Fabrication scraps were booked from the Middle East at $435/t CFR Qasim.
  
  
• A parcel of 500-t of PNS scraps were booked from Hong Kong at $440/t CFR Chattogram.
  
  
• About 500 t of bundle scraps were booked from Malaysia at $400/t CFR Chattogram.
  
  
• Approximately 750 t of HMS (80:20) scraps were procured from Yemen for $370-375/t on a CFR west coast India basis.
  
  
• About 300-t of Fabrication scraps were secured from the Middle East at $427/t CFR Qasim.
  
  
• A small parcel of 300-t of shredded was booked from the Middle East at $445/t CFR Qasim.
  
  
• About 1,000-t of HMS (80:20) were booked from Australia at $384/t CFR LCB (Thailand).
  
  

Price assessments

India: UK-origin shredded scrap indicatives were kept unchanged at $420/t CFR Nhava Sheva today.

Pakistan: UK-origin shredded scrap indicatives were stable at $435/t CFR Qasim today.

Bangladesh: UK-origin shredded scrap prices were up by $2/t to $440/t CFR Chattogram.

Turkiye: US-origin HMS (80:20) bulk prices were assessed at $425/t CFR Turkiye; down by $3/t d-o-d.

Outlook

Anticipated limitations in imported ferrous scrap offers persist, as significant importers display hesitancy in seaborne trades. However, a revival in demand is foreseen towards the end of the month, propelled by mills' re-stocking needs for the upcoming production cycle.