South Asia: Imported scrap offers see mixed trends d-o-d, buyers await clear price direction

Today, South Asian ferrous scrap prices showed a mixed trend, but buying activities remained sluggish. Indian buyers were displaying disinterest in procuring imported scrap due to pricing unviability. The market in Pakistan was experiencing a slowdown due to elections and sluggish sales of finished steel. Buyers in Bangladesh were seeking more clarity in the prevailing price trend.

Shredded scrap offers increased by $2-5/t in India and Bangladesh, while they remained stable in Pakistan. US bulk HMS (80:20) offers stayed unchanged for Turkiye today.

Market overview

India: Demand for imported scrap in India remained lacklustre due to pricing unviability, coupled with subdued sales of finished steel in the domestic market. No firm offers were reported from Europe. However, indicative prices from the US were noted at $410/t CFR for shredded scraps and $395/t CFR for HMS (80:20) scraps.

According to a spokesperson from a steel mill, "the stagnation in finished steel prices is a result of notably weak demand in the sector. Furthermore, the current prices of sponge iron are lower than those of scrap, and unfavourable freight rates are leading to poor realisations for importers. The significant gap between offers and bids poses a challenge, with limited possibilities for identifying workable levels in both bulk and container shipments."

Pakistan: Demand for imported scrap in Pakistan remained slow due to the upcoming February elections. Indicative offers for shredded scrap from Europe were assessed at $435-440/t CFR Qasim, while offers from the Middle East were heard at $455-460/t CFR for shredded scrap and $410-415/t CFR for HMS scraps.

A representative from a steel mill mentioned, "Business has been sluggish throughout this entire month, attributed to the upcoming February elections. There is a noticeable absence of significant infrastructure activities in the country at the moment."

Another official from a steel mill stated, "We are currently on hold due to the depressed market conditions. Finding a seller below $430/t is challenging. Payment processing from the bank is posing difficulties with the upcoming elections and weakening Forex."

Bangladesh: Demand for imported scrap in Bangladesh stayed at a moderate level today, with buyers awaiting a clear direction in the price trend. Additionally, negotiations for a few bulk deals are currently underway. Indicative offers for shredded scrap from Europe were assessed at $440-445/t CFR Chattogram, while HMS (80:20) was heard at $415-420/t CFR.

Turkiye: Imported ferrous scrap offers in Turkiye remained stable amid moderate market activity. Sellers maintained a firm stance in anticipation of restocking demand from Turkish mills, despite pressure from the buyers' side. European recyclers faced challenges in reducing offers due to high collection costs during the winter. Sellers suggested workable levels of $415-420/t CFR for HMS (80:20) to Turkiye, while buyers were bidding below this range. Indicative offers for US/Baltic-origin HMS (80:20) were in the range of $418-$422/t CFR, and those from Europe were heard at $412-420/t CFR.

Recent deals

• About 1,000 t of HMS 1 were booked from Kuwait at $408/t CFR west coast India.
  
  
• Around 2,000 t of HMS (80:20) were booked from West Africa at $395/t CFR west coast India.
  
  

Price assessments

India: UK-origin shredded scrap indicatives were assessed at $415/t CFR Nhava Sheva, up by $5/t d-o-d.

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

Bangladesh: UK-origin shredded scrap prices were assessed at $442/t CFR Chattogram, inched up by $2/t d-o-d.

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