South Asian imported ferrous scrap market sees downtrend amid weak demand- 22 July

In South Asia, the imported scrap markets of India, Pakistan, and Bangladesh are facing distinct challenges. India's demand has nearly vanished due to price disparities, while Pakistan's limited demand is influenced by slow rebar sales and low market sentiments. Meanwhile, Bangladesh's market remains quiet amid local disruptions caused by student protests over quotas.

Overview

India: India's demand for imported scrap has nearly vanished due to a significant price disparity between suppliers' offers and buyers' asking prices, resulting in no trades. Even suppliers have stopped offering to India, noting the lack of interest. A supplier based in the UK/Europe commented that yard owners are not willing to make offers to India as they are achieving much better realisations in the domestic market compared to container shipments.

Indicative offers for shredded scrap from the US and UK/Europe were assessed at $408-414/t CFR, but there are no buyers at these levels. Some offers were also heard at $425-430/t from specific suppliers.

HMS (80:20) offers from West Africa and UK/Europe were assessed at $385-390/t CFR, while buyers are aiming for prices below or at $380/t CFR.

Pakistan: In Pakistan, demand for imported scrap has been limited due to slow rebar sales. Indicative offers for shredded scrap from the UK/Europe were heard at $425-428/t CFR Qasim, from the US at $420-422/t CFR, and from the UAE at $435/t CFR.

A steel mill official stated, "Steel sales are low, and our margins are just enough to meet the break-even point. Moreover, payments are delayed, resulting in very low market sentiment."

In the domestic market, local scrap prices were heard at PKR 152,000-155,000/t and rebars were at PKR 255,000-260,000/t.

Notably, around 2,000 t of shredded scrap were heard to have been booked from the UK at around $425-426/t CFR Qasim.

Bangladesh: The Bangladeshi imported scrap market was quiet today due to disruptions in the local market caused by recent student protests over quotas. Indicative offers for shredded scrap were assessed at $420-425/t CFR, while HMS (80:20) offers were at $405-408/t CFR.

Price assessments

India: UK-origin shredded scrap indicatives were assessed at $414/t CFR Nhava Sheva, down by $1/t compared to the last closing on Friday.

Pakistan: UK-origin shredded indicatives were assessed at $426/t CFR Qasim, down by $4/t compared to the last closing.

Bangladesh: UK-origin shredded prices were assessed at $425/t CFR Chattogram, down by $1/t.

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