South Asia: Imported scrap offers remain stable; Pakistan, Bangladesh markets quiet

Today, the South Asian ferrous scrap market maintained stability. In India, there was a slight uptick in inquiries for imported scrap; however, the lack of price clarity and limited availability of scrap domestically kept buyers cautious. Conversely, Pakistan and Bangladesh experienced subdued activity due to Eid preparations, a subdued finished steel market, and delays in LCs.

Shredded scrap offers remained unchanged across markets compared to the last closing on Friday. Similarly, US bulk HMS (80:20) offers to Turkiye were assessed flat compared to the previous closing.

Overview

In India, inquiries for imported scrap have increased due to the limited availability of domestic scrap. However, buyers are exercising caution and seeking further clarity on pricing. Indicative offers for shredded scrap from Europe were evaluated at $418-420/t CFR, while HMS (80:20) from West Africa and Europe were assessed at $385-395/t CFR. As per recent reports, around 400-500 t of turning boring scraps were booked from Europe at $360/t CFR Mundra.

Meanwhile, the Pakistani market is experiencing a quiet period as buyers begin preparations for Eid celebrations. According to market participants, the demand for finished steel has significantly dwindled, and major mills have chosen to undergo maintenance shutdowns due to the off-season. Indicative offers for shredded scrap from Europe were evaluated at $420-425/t CFR.

Similarly, in Bangladesh, major industry players have embraced a holiday atmosphere for Eid celebrations. Additionally, delays in LC approvals have contributed to a recent slowdown in scrap demand. Indicative offers for shredded scrap from UK/Europe were reported at $420-425/t CFR, while HMS (80:20) was priced at $400-405/t CFR.

Price assessments

India: UK-origin shredded scrap indicatives were assessed unchanged at $420/t CFR Nhava Sheva, compared to last closing on Friday.

Pakistan: UK-origin shredded scrap indicatives were assessed stable d-o-d at $425/t CFR Qasim.

Bangladesh: UK-origin shredded scrap prices were assessed flat at $420/t CFR Chattogram, compared to last closing on Friday.

Turkiye: US-origin HMS (80:20) bulk prices were assessed at $384/t CFR Turkiye, unchanged against last Friday.

Outlook

In the near term, imported scrap offers are expected to fluctuate, with Pakistan, Bangladesh, and Turkiye observing Eid holidays. Concurrently, in India, purchasing activity may slow down due to regional festivities and ongoing market uncertainties.