South Asian imported scrap prices range-bound amid moderate trading

South Asian ferrous scrap prices remained largely stable d-o-d. India's demand remained slow due to a lack of buyer interest and a downward trend in the domestic steel market. Pakistan experienced minimal interest from buyers, impacted by moderate domestic steel market activity and post-Muharram holidays. In Bangladesh, moderate interest continued due to LC and financing challenges, with a preference for bulk cargoes over containers

Overview

India: India's demand for imported scrap remained slow due to a lack of buyer interest at the offered levels. The domestic steel market's ongoing downward trend also impacted overall scrap consumption. For example, BF-route rebar prices in India dropped by approximately INR 800-2,000/t across various regions, hitting a four-month low. Similarly, IF-route rebar prices fell by INR 300/t. Market participants in the distribution network adopted a destocking mode to liquidate inventories, leading to mostly need-based buying across regions. Buyers avoided bulk procurement due to market volatility, prompting sellers to offer attractive discounts to move their materials.

Indicative offers for shredded scrap from the US and UK/Europe were assessed at $410-415/t CFR Nhava Sheva, while HMS (80:20) was at around $385-390/t CFR.

Notably, a deal of around 500 t of HMS-PNS mix scrap originating from the UAE was heard to have been concluded at $390/t CFR Mundra.

Pakistan: Pakistani buyers showed minimal interest in imported scrap due to moderate activity in the domestic steel market and reduced buyer activity following the Muharram holidays. Better clarity was expected in the upcoming week. Indicative offers for shredded scrap from the UK/Europe were assessed in the range of $425-430/t CFR Qasim.

Bangladesh: Bangladeshi buyers continued to show moderate interest in seaborne scrap due to LC and financing challenges. Additionally, the domestic steel market was not supportive amidst a slowdown in construction activities. Indicative offers for shredded scrap from the UK/Europe were at $425-430/t CFR Chattogram, while HMS (80:20) hovered at $400-408/t CFR.

Notably, in Bangladesh, buyers preferred to book bulk cargoes instead of containers due to LC issues and better pricing.

Turkiye: The Turkish imported ferrous scrap market witnessed multiple deals:

• US-origin bulk cargo with HMS (80:20) at $390/t to Aegean region mill.
  
  
• US-origin bulk cargo with HMS (80:20) at $390/t to Mediterranean region mill.
  
  
• Northern Europe-origin bulk cargo with HMS (80:20) at $388/t to Mediterranean region mill.
  
  
• US-origin bulk cargo with 30,000t mix (10,000t each of HMS (90:10), Shredded, and Bonus) at $392/t and $410/t to Mediterranean region mill.
  
  
• Netherlands-origin bulk cargo with HMS (80:20) at $383/t to a West Marmara region mill.
  
  

Price assessments

India: UK-origin shredded scrap indicatives were assessed at $415/t CFR Nhava Sheva, down by $1/t d-o-d.

Pakistan: UK-origin shredded indicatives were assessed unchanged d-o-d at $430/t CFR Qasim.

Bangladesh: UK-origin shredded prices were assessed at $426/t CFR Chattogram, up by $1/t d-o-d.

Turkiye: US-origin HMS (80:20) bulk prices were assessed at $390/t CFR Turkiye, down by $1/t.