South Asia: Imported scrap offers rise in India and Pakistan; weak sentiment persists d-o-d

Today, the South Asian ferrous scrap market experienced better trading in India, Bangladesh, and Turkiye. However, in Pakistan, both mills and buyers remained hesitant to make bookings due to fluctuations in currency exchange rates.

Imported shredded scrap offers remained stable, with a slight increase of up to $1-2/t in both India and Pakistan.

Market overview

India: Today, in India multiple imported deals were heard out of which few were backdated and very few for shredded scrap. The majority of the transactions primarily involved HMS and busheling scrap.

Offers for containerised shredded scrap from Europe were heard at $428-430/t CFR Nhava Sheva, while HMS (80:20) was at $412-414/t CFR.

Offers for Yemen-origin HMS were heard at $415/t CFR west-coast.

An official from a steel mill in North India informed SteelMint: "The market is currently witnessing a surge in imported scrap availability, resulting in selling pressure. Importers are facing difficulties in selling their existing inventory. We expect that Turkiye has secured material supplies till October, which may put downward pressure on prices. Given this situation, we are considering reserving some volumes accordingly."

Another trader source mentioned: "The market appears to be holding steady, and sentiment remains positive. While there may be a potential correction on the horizon, any downturn will likely be followed by a swift rebound."

Pakistan: In Pakistan, demand for imported scrap was sluggish, as both steel mills and traders adopted a wait-and-see approach, seeking stability in exchange rates before making any significant bookings. Offers for shredded scrap from Europe were heard at $430-435/t CFR Qasim.

Bangladesh: The imported ferrous scrap market in Bangladesh continued to remain slow due to the ongoing monsoon season and subdued demand in the long steel sector. However, a few deals were heard today. Offers for Europe-origin shredded scrap were heard at $440-445/t CFR Chattogram, with deals getting concluded at $435/t CFR.

In the domestic market, local scrap was priced at BDT 52,000/t, while ship-breaking scrap was assessed at BDT 54,000-55,000/t. Rebar prices stood at BDT 81,000-83,000/t ex-Dhaka and BDT 91,000-92,000/t ex-Chattogram.

Other raw materials such as sponge iron were heard at $432-435/t CPT Benapole.

Turkiye: Turkish deepsea imported scrap prices inched down amid uncertain market sentiment. Buyside market participants expressed bearish price sentiments, as slow finished steel sales limited mill demand for imports of scrap. The already narrow scrap-rebar spread would prevent any upside in the market. Recent deals were heard at $372 and $375/t levels from Europe, indicating that the market is at the same level as before.

Recent deals

• Around 500 t of US-origin shredded scrap was booked at $425/t CFR Nhava Sheva
  
  
• Around 500 t of Yemen-origin HMS (80:20) was sealed at $412/t CFR West Coast
  
  
• About 500 t of Libya-origin HMS was secured at $418/t CFR West Coast
  
  
• Around 500 t of Europe-origin sheared HMS was procured at $424/t CFR Chennai
  
  
• Around 3,000 t of shredded scrap from Europe was procured at $435/t CFR Chattogram
  
  
• Approximately 2,500 t of HMS (80:20) scrap was sourced from Europe at $420/t CFR Chattogram
  
  
• Around 1,000 t of Thailand-origin NTP was booked at $445/t CFR Chattogram
  
  
• Around 1,000 t of Europe-origin loose busheling scrap was booked at $440/t CFR Chennai
  
  
• About 1,000 t of HMS (80:20) from Europe was procured at $415/t CFR Mundra
  
  
• About 1,000 t of shredded scraps from Europe was booked at $435/t CFR Mundra
  
  
• Approximately 1,000 t of European busheling scrap was booked at $455 CFR West Coast
  
  
• 500 t of New Zealand origin shredded scraps were booked at $440/t CFR Chattogram
  
  
• 500 t of Hong Kong origin PNS were secured at $465/t CFR Chattogram
  
  

Price assessments

India: UK-origin shredded scrap offers were at $430/t CFR Nhava Sheva, up $1/t d-o-d

Pakistan: UK-origin shredded scrap offers went up by $2/t to $434/t CFR Qasim today.

Bangladesh: Offers for UK-origin shredded scrap were stable at $440/t CFR Chattogram, d-o-d.

Turkiye: US-origin HMS 1&2 (80:20) prices were unchanged d-o-d at $375/t CFR Turkiye.

Outlook

Imported ferrous scrap offers are likely to rebound slightly in India and Turkiye driven by positive market sentiments and a firm outlook. Meanwhile, in Pakistan and Bangladesh, volatility may continue to persist in the scrap market.