South Asian imported scrap market active, prices likely to remain volatile

Imported scrap buyers in South Asia remained active as prices continued to move up in the second half of the week. However, market players were slow in terms of booking fresh material. They remained cautious about the unstable economic scenario and slow domestic market movements.

Market Overview

• India: Indian scrap buyers maintained their presence in the market, but were now looking for more quality material and feasible prices. "Buyers are looking for African and other origin HMS, as these have good quality and offer better yield," said scrap buyers familiar with the matter. They are also looking for material other than that from the UK-EU, to avoid the low yield rate here. "Indian buyers are going for materials that ensure better recovery," said another scrap buyer.
  
  
• Pakistan: Imported scrap buyers slowed down in booking fresh material in the second half of the week. On Thursday, steel producers slowed down negotiations for imported material and looked to get further discounts. However, suppliers are not in a hurry to lower their offers. Fresh offers are at $420-425/t CFR levels. The Pakistani rupee has also become unstable and is currently being traded at 287.5 as compared to the dollar.
  
  
• Bangladesh: Mills in Bangladesh remained active in the market and carried out negotiations. However, transactions remained slow as compared to the first half of the week. Due to the unstable economic situation and slow domestic market movements, buyers are cautious.
  
  
• Turkiye: Trade activities resumed on Wednesday at accelerated prices. However, on Thursday, a fresh deal was concluded for UK-origin bulk cargo, consisting of HMS (80:20) at $355/t CFR levels. Prices are expected to move up further on improved finished steel demand. On the other hand, suppliers are pushing for higher prices amid better interest from other major outlets.
  
  

Recent Deal

• Around 2000 t Europe origin Turning scrap booked at $365-370/t price range CFR Chennai
  
  

Price assessments

• India: UK-origin shredded scrap offers are at $420/t CFR Nhava Sheva, unchanged d-o-d.
  
  
• Pakistan: UK-origin shredded scrap offers are at $422/t CFR Qasim, unchanged d-o-d.
  
  
• Bangladesh: Offers for UK-origin shredded scrap were at $428/t CFR Chattogram, unchanged d-o-d.
  
  
  
• Turkiye: US-origin HMS 1&2 (80:20) prices up d-o-d, to $355/t CFR Turkiye.
  
  

Outlook

There is strong demand from steel producers, which is supporting prices. However, there are some headwinds, such as the unstable Pakistani rupee and slow domestic demand in Bangladesh. Overall, the market is expected to remain volatile in the near term.