South Asia: India's imported scrap demand sees mixed trend amid bid-offer disparities - 12 July
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The South Asian ferrous scrap market experienced a mixed trend of late. In India, demand waned amid significant bid-offer disparities. Pakistan, post-Eid, witnessed cautious procurement of imported scrap amid steel production constraints. Meanwhile, Bangladesh showed moderate interest due to adverse weather affecting steel demand.
Overview
India: In India, demand for imported ferrous scrap has significantly declined due to lack of buyer interest amid a substantial bid-offer disparity. Indicative offers for shredded scrap from the US and UK/Europe were assessed at $410-415/t CFR Nhava Sheva, while buyers are only willing to pay $400-405/t CFR. Offers for HMS (80:20) from West Africa and the UK/Europe are at $385-390/t CFR.
Pakistan: Pakistani buyers were procuring imported scrap on need basis since production levels have not yet returned to normal levels post-Eid and on fear of further price hikes. Current shredded scrap offers from the UK/Europe were in the range of $425-430/t CFR Qasim.
Bangladesh: Bangladeshi buyers have displayed moderate interest in imported scrap amid adverse weather conditions, which have slowed down the domestic steel market. Additionally, gas shortages have prompted many mills to reduce production or temporarily shut down. Indicative offers for shredded scrap from the UK/Europe were reported at $420-425/t CFR Chattogram, while HMS (80:20) was priced at $405-410/t CFR.
Turkiye: Turkish deep-sea imported ferrous scrap prices remained steady at $390/t CFR for US bulk HMS (80:20), with limited market activity. US-origin or premium HMS (80:20) prices were around $389-$390/t CFR. Despite weak demand, lack of scrap generation kept prices high. Traders suggested potential price drops, with Turkish buyers targeting $385/t CFR, while sellers held firm at $392-$393/t CFR. The EU sellers, facing high collection costs, refused to go below $385/t CFR.
Price assessments
India: UK-origin shredded scrap indicatives were assessed at $414/t CFR Nhava Sheva, up by $1/t d-o-d.
Pakistan: UK-origin shredded indicatives were assessed at $427/t CFR Qasim, up by $2/t d-o-d.
Bangladesh: UK-origin shredded prices were assessed unchanged at $424/t CFR Chattogram.
Turkiye: US-origin HMS (80:20) bulk prices were assessed at $390/t CFR Turkiye, unchanged.
