South Asia: India's imported scrap demand remains dull on bid-offer disparity

The South Asian ferrous scrap market saw mixed trends once again today. In India, despite a slight increase in buyer inquiries, no trades were concluded due to bid-offer disparities, particularly affecting shredded scrap. Pakistan's demand for imported scrap remained limited due to rising electricity and gas tariffs, leading to a slowdown in the domestic steel market. In Bangladesh, the market is still disrupted following student protests and an ongoing internet shutdown, causing a communication gap. Meanwhile, Turkiye saw a slight uptick in imported ferrous scrap prices, although buying prices are under pressure due to the availability of cheaper billets from the Far East.

Overview

India: Indian buyers have shown a slight increase in inquiries; however, no trades were concluded due to bid-offer disparities between sellers' asking prices and buyers' bids. This issue is particularly pronounced for shredded scrap, where ongoing price differences have prevented any trades. Demand for HMS 80:20 scrap remained relatively better.

Additionally, major steel mills have increased their sponge iron intake in their charge mix due to its cost-effectiveness.

Indicative offers for shredded scrap from the US and UK/Europe were assessed at $413-420/t CFR, while HMS (80:20) offers were at $385-392/t CFR.

Pakistan: In Pakistan, demand for imported scrap remained limited due to a slowdown in the domestic steel market, attributed to increased electricity and gas tariffs. Indicative offers for shredded scrap from the UK/Europe hovered around $425-430/t CFR Qasim, while offers from the UAE were at $435-436/t CFR.

A steel mill official stated, "Trade levels are stagnant due to weak sales in the steel sector coupled with rising operational costs. Mills are unable to increase prices for finished and semi-finished products." He further added, "Our production is now at 45-50%, and our import volume has dropped to 5,000-6,000 tonnes (t) per month. Domestic scrap consumption remains at 3,000-4,000 t per month."

Bangladesh: The Bangladeshi market has yet to return to normalcy following the student protests over job quotas. No major offers or firm bids were heard today. Additionally, the ongoing internet shutdown has caused a significant communication gap. The most recent indicative offers for shredded scrap from the UK/Europe were reported at $425-430/t CFR Chattogram, while HMS (80:20) was at $405-410/t CFR.

Turkiye: Turkish imported ferrous scrap market saw a slight uptick in prices. Offers for US-origin bulk HMS (80:20) scrap stood at $389/t CFR, marking a $1/t increase from the previous day. There was market chatter about a UK-origin deal booked by an Izmir mill late in the previous week, with HMS (80:20) priced at $385.50/t CFR and shredded scrap at $410.50/t CFR. Additional EU-origin deals were heard between $384/t CFR and $385/t CFR.

Despite this, buying prices are under pressure due to the availability of cheaper billet from the Far East, with mills potentially reducing scrap imports if billet prices remain low. Turkish mills are likely to wait and press for lower scrap prices.

Price assessments

India: UK-origin shredded scrap indicatives were assessed at $417/t CFR Nhava Sheva, up by $1/t d-o-d.

Pakistan: UK-origin shredded indicatives were assessed stable at $429/t CFR Qasim.

Bangladesh: UK-origin shredded prices were assessed unchanged d-o-d at $428/t CFR Chattogram.

Turkiye: US-origin HMS (80:20) bulk prices were assessed at $389/t CFR Turkiye, up by $1/t d-o-d.