South Asia: Indian buyers show disinterest in imported scrap; Pakistan, Bangladesh silent post-Eid

The South Asian ferrous scrap market continued to remain slow today. Indian buyers have adopted a wait-and-see approach, showing little interest in imported scrap due to bid-offer disparities, sluggish finished steel sales, and more attractive domestic alternatives. Meanwhile, Pakistani and Bangladeshi buyers have not fully resumed operations following the Eid holiday, with low production levels and bearish steel sales reported in Pakistan. Additionally, Bangladeshi traders face surging freight costs and container shortages, further complicating market dynamics.

Overview

India: Indian buyers have adopted a wait-and-see approach, showing little interest in procuring imported scrap. This hesitation stems from bid-offer disparities, sluggish finished steel sales, and more attractive alternatives available in the domestic market. Shredded scrap offers from the US and UK/Europe are assessed at $414-417/t CFR Nhava Sheva, while HMS (80:20) offers from the UK/Europe and West Africa are around $390-392/t CFR Nhava Sheva.

A steel mill official stated, "We are not making counter bids because we are getting shredded scrap offers at INR 39,000/t from a domestic shredder. Their raw materials are premium, ensuring good quality, and the cost is competitive with imported scrap. Production levels are normal, with a 5% sponge mix, but finished steel sales are slow."

Pakistan, Bangladesh: Pakistani and Bangladeshi buyers have not fully resumed operations after the weeklong Eid holidays. However, a few major market participants reported that production levels in Pakistan are low and steel sales are bearish. Indicative offers for shredded scrap from the UK/Europe and UAE were assessed at $425/t and $435/t CFR Qasim, with UAE-origin offers were at- $430/t for fabrication and $405/t for PNS-HMS mix.

Meanwhile, a Bangladeshi trader commented that freight costs, which were $800-1,200/container in March, have now surged to nearly three to four times higher. Also, extreme congestion at Yokohama port and a significant shortage of available containers for shipments. The Bangladeshi market remains inactive because of Eid holidays, letters of credit (LC) issues for small buyers persisted, and extended voyage times.

Price assessments

India: UK-origin shredded scrap indicatives were assessed at $417/t CFR Nhava Sheva, unchanged against last closing on Friday.

Pakistan: UK-origin shredded indicatives were assessed at $425/t CFR Qasim, up by $2/t compared to the last Friday.

Bangladesh: UK-origin shredded prices rose by $2/t to $425/t CFR Chattogram.

Turkiye: US-origin HMS (80:20) bulk prices were assessed at $386/t CFR Turkiye, stable compared to the last closing.

Outlook

In the near term, imported scrap offers are likely to be volatile due to bearish demand from key markets in India, Pakistan, and Bangladesh. Rumours suggest an increase in freight rates because of port congestion and the limited availability of containers globally, adding to the uncertainty. Additionally, India's upcoming monsoon season may further impact market sentiment.