South Asia: Imported scrap offers witness mixed trend; Bangladeshi buyers remain active

The ferrous scrap market in South Asia showed a mixed trend. Indian buyers remained cautious, while the Pakistani market slowed due to Ramadan. However, Bangladeshi buyers stayed active due to improved market sentiment and easier LC processing.

Shredded scrap offers increased slightly by $2/t in India and Pakistan, but decreased by $5/t in Bangladesh. Bulk US HMS (80:20) offers to Turkiye saw a marginal increase of $1/t.

Overview

Today, Indian buyers chose to stay on the sidelines and opted to procure scrap from the domestic market due to cost-effectiveness. Shredded scrap offers from Europe and the US were observed within the range of $400-410/t CFR. Meanwhile, HMS (80:20) from the US, Europe, and West Africa was priced between $370-380/t CFR.

A representative from a steel mill commented, "We are currently not interested in purchasing imports. Turkiye has halted its purchases if prices drop by more than $10/t. Indian buyers are expected to resume bookings, but with elections approaching, market activities are anticipated to remain sluggish."

In Pakistan, market activities have slowed down with the onset of Ramadan. Steel mills have opted to decrease the prices of grade 60 rebar by PKR 5,000/t due to recent fluctuations in operational costs and prevailing market conditions. Shredded scrap offers from Europe and the UK were observed in the range of $405-410/t CFR Qasim.

Following the price adjustment, rebar prices for grade 60 have been revised to approximately PKR 269,000/t for 10-12 mm and PKR 267,000/t for 16-25 mm. Local scrap prices were reported to be in the range of PKR 160,000-165,000/t.

Notably, around 2,000 t of shredded scrap were booked from the US and Europe at $402/t CFR Qasim.

A steel mill commented, "Buying will be slow in Pakistan and Bangladesh due to Ramadan. There's no major buying from Pakistan, and inquiry levels are expected to hover around $405-410/t. Dull demand for finished steel is the reason behind domestic rebar price reductions."

In contrast, Bangladeshi buyers have shown relatively more activity, with several bulk deals recently concluded. Buyers are able to open LC without hassles, and construction activities have improved, boosting demand for rebars. Shredded scrap offers in containers from Europe were noted at around $410/t CFR, while HMS 80:20 was priced at $400/t CFR. However, buyers exhibited a preference for Australian and New Zealand containers as European prices are comparatively higher.

Bulk shredded scrap offers from Australia were approximately $405-407/t, while HMS (80:20) was priced at around $390-395/t CFR.

A representative from a trading company stated, "The market outlook remains relatively stable, although prices have experienced a downward trend due to the absence of other Asian buyers."

Price assessments

India: UK-origin shredded scrap indicatives were assessed at $405/t CFR Nhava Sheva, up by $2/t compared to the last closing on Friday.

Pakistan: UK-origin shredded scrap indicatives were assessed at $407/t CFR Qasim, up by $2/t compared to the last closing on Friday.

Bangladesh: UK-origin shredded scrap prices were assessed at $410/t CFR Chattogram, down by $5/t compared to the last closing on Friday.

Turkiye: US-origin HMS (80:20) bulk prices were assessed at $375/t CFR Turkiye, up by $1/t.