South Asia: Imported scrap prices stable d-o-d, even as Turkish buyers accept high offers
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The South Asian imported ferrous scrap market remained unchanged in terms of prices today. Indian buyers kept their buying trend limited with nominal volumes captured, especially by traders on the West Coast. In Pakistan, buyers have not shown interest in the currently rising shredded prices from Europe due to weaker supply. Meanwhile, in Bangladesh, buyers were in cautious mode due to weaker foreign reserves and delays in LCs.
Overall, shredded scrap offers remained stable on a d-o-d basis today.
India: Today, the demand for imported scrap in India remained subdued, with limited inquiries attributed to the festive mood among market participants. Indicative offers for shredded scrap from Europe were in the range of $406-410/t CFR Nhava Sheva, while HMS (80:20) scraps were reported at $386-390/t CFR.
A trader noted that the Indian market is currently inactive due to reduced demand. The observed high price trend, potentially influenced by Turkiye, has led some mills to contemplate purchasing at elevated prices. However, many are opting to wait for clarity post-holidays before taking decisions.
Meanwhile, Indian domestic scrap users maintain sufficient inventories. The domestic demand for finished steel has weakened, influenced by state elections, a construction ban in New Delhi, and the upcoming Diwali festivities, as per market participants.
Pakistan: In Pakistan, the demand for imported scrap has remained sluggish. Shredded scrap offers from Europe were assessed in the range of $410-415/t CFR Qasim, but workable levels, according to buyers, were around $400-405/t CFR, creating a significant bid-offer disparity. Offers from the Middle East were reported at $380-385/t CFR for HMS and $410-415/t for fabricated material.
A source at a steel mill said, "Finished steel sales are very slow, and if this condition persists, local scrap prices may drop next week. Shredded scrap offers around $415/t are not garnering significant interest at these levels."
According to a market survey, local scrap prices have decreased, currently at PKR 160,000-162,000/t, compared to PKR 175,000/t last week.
Bangladesh: In Bangladesh, market activities remained subdued due to ongoing issues with LC delays and a weakened currency flow, exacerbated by concerns ahead of the election. The market is experiencing volatility in prices, influenced by increased purchasing from Turkiye at higher prices than a week ago, making bulk buyers from Bangladesh cautious.
Shredded scrap offers from Europe were assessed at $425-428/t CFR Chattogram, while HMS (80:20) scraps were reported at $405-410/t CFR.
Turkiye: Market participants informed SteelMint that the local scrap market in the Marmara and Iskenderun regions is currently at $345-360/t. Scrap buyers have raised their bids to attract recyclers in the relatively slow domestic market. Current scrap imports are at $375-380/t on a CFR basis, primarily offered by Europe, while US offers have decreased due to a stronger local market.
There are reports of a concluded deal with US-origin scrap at $378/t CFR by a mill in the Aegean region. An unconfirmed deal from the Netherlands to a mill in the Mediterranean region was reportedly concluded at $373/t CFR Turkiye.
As per a few trading sources, the continuous rise in scrap prices is likely a result of the tight global supply of ferrous scrap, with little indication of changes in demand fundamentals for Turkish finished steel influencing scrap prices.
Recent deals:
Around 750 t of European shredded scraps were booked at $405/t CFR Nhava Sheva.
Around 1,000 t of European shredded scraps were sold at $412/t CFR Qasim.
A parcel of 1,000-t of shredded scrap from Malaysia was sold at $420/t CFR Chattogram.
Around 1,000 t of Latin American HMS 1 were sold at $410/t CFR West Coast India.
Approximately 540 t of shredded from Europe were booked at $410/t CFR Nhava Sheva.
Around 500 t of Kuwait-origin PNS scraps were sold at $422/t CFR West Coast India.
Outlook: Imported ferrous scrap offers are likely to see some gain in prices, whereas major participants like India are likely to see slow activities amid the ongoing festive season across regions, whereas slow steel sales in Pakistan are likely to keep buyers cautious. Bangladesh market activities are likely to remain short due to a liquidity crunch and weaker buying parity.
