South Asia: Imported scrap offers remain unchanged d-o-d on dull demand

The ferrous scrap prices in South Asia remained unchanged d-o-d today, primarily due to subdued demand, particularly in India and Pakistan owing to un-viability and upcoming elections. However, there were some activities observed in the Bangladeshi market, including a recent bulk deal concluded with material sourced from Australia.

Market overview

India: In the Indian market, the import of scrap has remained subdued due to a persistent gap between offers and bids, rendering imports unfeasible at the present time. Indicative offers for shredded scrap from Europe were evaluated at $410-415/t CFR Nhava Sheva, while HMS (80:20) were reported at $390-395/t CFR levels.

A trader mentioned, "Importing scrap is currently unviable in India, so we are not even considering offers. Offers for shredded scrap are ranging from $415-420/t, but buyers' expectations are set at $395/t, not exceeding that. The desired level for HMS is $390/t; however, buyers are expressing interest at $380/t levels. At the moment, we are not making any bookings. Previously booked materials are almost here, and a few more will touch down in 5-6 days."

An official from a steel mill mentioned, "As there is no demand for TMT in the southern region, we do not anticipate a specific positive trend in imported scrap prices."

Pakistan: In Pakistan, market activities have been restricted due to the upcoming elections and the preparations associated with them. Indicative offers for shredded scrap from Europe were evaluated at $435-440/t CFR Qasim. Meanwhile, from the Middle East, they stood at around $455-460/t CFR for shredded scrap and $410-415/t CFR for HMS scraps.

A representative from a steel mill commented, "The market is currently subdued as preparations for the upcoming elections are underway. Despite ongoing offers, no transactions have been reported."

Bangladesh: In Bangladesh, there was a modest improvement today as a bulk deal heard to be concluded at approximately $425/t CFR Chattogram for 30,000-35,000 t of HMS sourced from Australia. Indicative offers for shredded scrap in containers from Europe were appraised at $440-445/t CFR Chattogram, while HMS (80:20) was quoted at $415-420/t CFR.

Turkiye: Turkish imported ferrous scrap offers have remained stable d-o-d due to sluggish rebar sales, while sellers have maintained a firm stance, citing higher collection costs.

According to a trader, "The demand for rebar has slowed down, leading mills to consider reducing their prices. However, they are also keen on preserving a substantial profit margin,so it is probable that scrap prices may need to decrease as well."

The scrap-to-rebar spread was assessed at around $195-198/t.

Market sources reported a deal involving approximately 20,000 t each of shredded and bonus scraps from UK, which were booked by a West Black Sea mill at $442/t each, respectively.

Recent deals

• Around 500 t of HMS (80:20) was booked from West Africa at $387/t CFR Nhava Sheva.
  
  
• Approximately 100 t of HMS processed were booked from Middle East at $410/t CFR Qasim.
  
  
• A parcel of 1,000-t of HMS-1 was booked from Middle East at $425/t CFR Chattogram.
  
  
• Around 1,000 t of PNS scraps were booked from Singapore at $445/t CFR Chhattogram.
  
  

Price assessments

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

Pakistan: UK-origin shredded scrap indicatives were assessed unchanged at $440/t CFR Qasim d-o-d.

Bangladesh: UK-origin shredded scrap prices were assessed at $442/t CFR Chattogram, unchanged d-o-d.

Turkiye: US-origin HMS (80:20) bulk prices were assessed unchanged at $420/t CFR Turkiye, d-o-d.

Outlook

Given the existing market conditions and sellers' unwavering stance driven by increased collection costs, it is anticipated that offers for imported scrap will maintain a consistent range.