South Asia: Mixed trends prevail in imported scrap market; Bangladesh secures multiple deals

The South Asian ferrous scrap market exhibited varied trends across key countries. In India, buyers showed reluctance to book imported scrap due to bid-offer disparities, prolonged delivery times, and container shortages, despite good domestic availability. Pakistan's market saw moderate demand on the first business day of the new financial year, with no major bookings reported. Conversely, Bangladesh was an active market with multiple bookings from Australia and America, driven by improved LC opening chances. Meanwhile, Turkish steelmakers resumed importing scrap after a mid-June hiatus, contending with higher prices and uncertain market dynamics.

Overview

India: In India, buyers hesitated to book imported scrap due to a general lack of interest amid softening steel prices, bid-offer disparity, and prolonged delivery times, now 45-50 days from the UK, up from the previous 30-35 days. Container shortage is also another major issue. Despite good domestic scrap availability, potential shortages loom in the south Indian market due to GST raids on major dealers. Current offers for US and UK/Europe shredded scrap are at $410-415/t CFR Nhava Sheva, while buyers' bids are at $405-408/t CFR. HMS (80:20) offers from West Africa and UK/Europe are assessed at $385-390/t CFR, while buyers' asking prices are $380-385/t CFR.

Notably, around 14,000 t of containerised shredded scrap are expected arrive at Vizag port which was booked from the UK/Europe at $421/t CFR.

Pakistan: In Pakistan, demand for imported scrap was moderate today, the first business day of the new financial year. Buyers were cautious, monitoring market trends, and no major bookings were reported. Indicative offers for shredded scrap from the UK and Europe were assessed at $420-425/t CFR Qasim.

In the domestic market, several steel mills, including Mughal, Naveena, and Amereli Steel, have increased prices of grade 60 steel by PKR 5,000/t. Current prices are approximately PKR 263,000-270,000/t for 9.5-10mm and 12mm bars, and PKR 265,000-272,000/t for bars 16mm and above.

Bangladesh: In Bangladesh, the imported scrap market was active with multiple bookings from Australia and America due to improved LC opening chances last weekend. High freight rates from Malaysia and Hong Kong deterred buyers, making Australia a favourable source, especially with its financial year-end in June.

Indicative offers for shredded scrap offers from UK/Europe were assessed at $420-425/t CFR Chattogram, while HMS (80:20) stood at $400-405/t CFR. Meanwhile, offers from Australia were heard at $425-430/t CFR.

Turkiye: After a brief period of inactivity in mid-June, Turkish steelmakers have resumed stocking up on imported scrap faced with the prospect of higher prices. Recent transactions have been reported from various regions, including the UK, Europe, the Baltics, and the USA. Prices for HMS (80:20) have ranged between $386-390/t CFR, with deals heard concluded at $386/t from the UK, $387.5/t from Germany, $388.5/t from Latvia, and $389/t from the USA.European suppliers are setting target levels above $388/t CFR, while US counterparts are aiming above $393/t CFR. Market dynamics remain uncertain, with future price trends dependent on steel production capacity utilisation.

Price assessments

India: UK-origin shredded scrap indicatives edged down by $1/t to $413/t CFR Nhava Sheva compared to the last closing on Friday.

Pakistan: UK-origin shredded indicatives were assessed unchanged at $423/t CFR Qasim, compared to the last closing.

Bangladesh: UK-origin shredded prices were assessed stable at $422/t CFR Chattogram, compared to the last closing on Friday.

Turkiye: US-origin HMS (80:20) bulk prices were assessed at $390/t CFR Turkiye, unchanged against Friday.