South Asia: Indian, Bangladeshi buyers wait and watch in range-bound market

The South Asian ferrous scrap market maintained a moderate stance today. Indian buyers have embraced a need-based purchasing strategy following numerous recent deals. In Pakistan, the market has slowed down due to subdued sales of finished steel in the domestic sector. Conversely, Bangladeshi buyers have shown a limited appetite for imported scrap. This was influenced by significant previous bookings and a desire to avoid excessive stockpiling ahead of the financial year closing (June).

Price movements indicated unchanged shredded scrap prices in India. A marginal $1/tonne (t) decrease in Pakistan, and a notable $3/t increase in Bangladesh were noted. Offers for US bulk HMS (80:20) to Turkiye remained steady compared to the last Friday's closing prices.

Overview

India: Today, demand for imported scrap in India has remained moderate, with buyers now adopting a more selective approach based on their immediate requirements. Over the past 10-12 days, the domestic steel market has seen a significant uptick, leading to a shortage of scrap. Consequently, buyers had been actively procuring imported scrap. However, this trend has slowed, with buyers adjusting their purchasing patterns to match their current needs, resulting in lower bids.

Indicative offers for shredded scrap from the US and Europe have been heard at $425-430/t CFR, while buyers' bids have hovered around $420/t CFR. Offers for HMS (80:20) from Europe and West Africa have been reported at $400-410/t CFR.

Pakistan: In Pakistan, demand for imported scrap has decelerated due to subdued activity in the downstream steel sector. Reports indicated that offers for shredded scrap from Europe were observed at $425-430/t CFR Qasim.

In recent developments, the Monetary Policy Committee (MPC) maintained the policy rate at 22%. Despite a decreasing inflation trend, it remained high. The MPC considered rising global commodity prices due to ongoing geopolitical events and the potential impact of upcoming budget measures on inflation.

Bangladesh: Bangladeshi mills have taken a cautious wait-and-see stance, remaining on the sidelines as they have already secured sufficient material and are reluctant to stock up further, especially with the financial year nearing its end. Indicative offers for shredded scrap from the UK and Europe have been noted at approximately $420-425/t CFR, while HMS (80:20) prices were reported at $400-405/t CFR.

Turkiye: An East-Marmara mill has purportedly secured a bulk scrap shipment from the US, consisting of HMS (80:20) scraps, at approximately $386/t CFR. Meanwhile, another major Turkish steel mill has booked a shipment from Europe at $383/t CFR Turkiye.

Price assessments

India: UK-origin shredded scrap indicatives were assessed at $425/t CFR Nhava Sheva, unchanged against the last closing on Friday.

Pakistan: UK-origin shredded indicatives were assessed at $427/t CFR Qasim, down by $1/t against the last closing on Friday.

Bangladesh: UK-origin shredded prices were assessed at $425/t CFR Chattogram, up by $3/t compared to last Friday.

Turkiye: US-origin HMS (80:20) bulk prices were assessed stable at $386/t CFR Turkiye.