South Asia: Indian buyers slow down scrap import bookings on cost-competitive alternatives

The imported scrap market in South Asia continues to remain muted as major buyers from Turkiye, Pakistan and Bangladesh are absent due to the Eid festival.

India

The Indian imported scrap market saw a slow trade movement today. Buyers who were active in yesterday's session have slowed down bookings due to cost-competitive domestic alternatives such as sponge iron. As per SteelMint's assessment, prices of sponge iron (CDRI) were assessed at INR 28,000-32,000/t DAP.

Containerised scrap buyers were cautious, waiting for further price corrections. Additionally, the monsoon season has weakened steel demand domestically.

However, steel producers are hopeful of a recovery in buying activity, going ahead. Many steelmakers may resume bookings for August shipments in order to restock inventory for post-monsoon production.

In the domestic market, scrap offers remained stable amid moderate buying inquiries and steady domestic semi-finished steel prices. Trading activity is expected to remain slow today due to the Eid festival. Domestic HMS (80:20) prices are hovering above the INR 36,500/t DAP levels.

Price assessment

• India: UK-origin shredded offers were at $418/t CFR Nhava Sheva, unchanged d-o-d.
  
  
• Pakistan: UK-origin shredded scrap offers stood at $423/t CFR Qasim.
  
  
• Bangladesh: Offers of UK-origin shredded were $445/t CFR Chittagong.
  
  
• Turkiye: US-origin HMS 1&2 (80:20) prices were at $380/t CFR Turkiye.
  
  

Outlook

There is a mixed outlook for the South Asian imported scrap market. On the one hand, the monsoon season is expected to weaken steel demand in the region. Thus, steel producers have adopted a wait-and-watch mode.

On the other hand, steel producers are looking to restock inventory for post-monsoon production, which could support scrap demand. Ultimately, the direction of the market will depend on several factors, including the pace of economic growth in the region, the availability of alternative raw materials, and global scrap prices.