South Asian imported scrap prices continue to move downward

The imported scrap market in South Asia continued to edge down in the middle of the week. Negotiations remained slow for imported scrap as buyers and suppliers happen to be observing the market closely.

India- and Bangladesh-based steel producers are active in the market and some deals have been concluded. Pakistani mills are staying away from the market, while Turkish steel mills have slowed down scrap bookings.

India

Indian imported scrap buyers were active in the market, and active negotiations between buyers and suppliers were seen. People were showing more interest in HMS grade material, instead of any other higher-grade scrap.

Meanwhile, imported scrap prices remained supportive, but buyers looked for further correction. Fresh offers were at around $405-406/t CFR; however, buyers were targeting $400/t levels. "Depend on Turkiye's market, but India has demand," said a scrap trader.

Pakistan

Imported scrap trade remained slow. Market players were looking for price direction. "The market is weak, there are no buyers so far," said a scrap trader. Limited LC openings from banks is a big hurdle for steel mills. Additionally, slow finished steel demand has kept market movement bearish.

Bangladesh

Bangladesh-based major buyers were interested in bulk cargo. However, after a round of deals in last week, buyers have been quiet. On the other hand, mini-mills are hopeful about a price correction. On the other hand, some sellers were a little aggressive but a few were slow in analysing the market situation.

However, buyers may come back next week to book a few more bulk cargoes, SteelMint learnt from sources.

Turkiye

On the third day of the week, a US-origin supplier was heard to have sold a bulk cargo to a Turkish steel producer. The cargo consisted of HMS 1&2 (80:20) sold at $355/t and shredded and bonus at $375/t each. The lack of demand for finished and semi-finished steel has slowed down buyers' participation. Hence scrap buyers are looking for a further price correction.

Recent deals

Around 500 t of UK-origin HMS(80:20) has been booked at $390/t CFR Mundra.

Approximately 250 t Europe origin shredded booked at $405/t CFR Chennai

Around 500 t European Turning scrap booked at $360/t CFR Chennai

Price assessments

• India: UK-origin shredded scrap offers stand at $407/t CFR Nhava Sheva, inch up d-o-d.
  
  
• Pakistan: UK-origin shredded scrap offers were at $408/t CFR Qasim, unchanged d-o-d.
  
  
• Bangladesh: Offers for UK-origin shredded scrap were at $425/t CFR Chattogram, down $5/t d-o-d.
  
  
• Turkiye: US-origin HMS 1&2 (80:20) prices stood at $360/t CFR Turkiye, down $5/t d-o-d.
  
  

Outlook

The South Asian imported scrap market remains uncertain, as prices are expected to continue to move down in the near term. However, if there is an improvement in demand for finished and semi-finished steel, the market may witness a rebound in prices in the coming weeks.