South Asian scrap buyers remain active; Bangladesh books bulk cargo

South Asian scrap buyers were active today despite persistent volatility in the market. The uptrend in global prices continues, with Bangladesh booking a bulk cargo from Japan and Turkish buyers returning to the market. However, Pakistani buyers remain cautious and are only booking small quantities.

Market overview

• India: Steel producers are actively watching market movements in India as steel demand continues to improve. Imported scrap consumption increased by 10% y-o-y in July. Considering the active participation of scrap buyers, suppliers are reluctant to lower offers. Some buyers are looking for prices to cool off, SteelMint learnt from source.Fresh offers are being heard at $420-425/t CFR; however, deals remained absent at these levels. "The market is difficult to predict. Prices have moved up due to low inventory," said a scrap trader.
  
  
• Pakistan: Imported scrap negotiations remained slow today. Offers for shredded material hovered in the range of $418-420/t CFR and some quantities have been booked at these levels. Some steel producers are waiting for market clarity, as Turkish scrap buyers were mostly out of the market due to bearish finished steel demand. In addition, the national currency (PKR) has also become unstable, and is currently being traded at 287.4 against the greenback.
  
  
• Bangladesh: Around 15,000 t of bulk cargo, consisting of H2 grade material, was booked by a major mill in Japan's Kanto scrap export tender, which concluded today for August. The deal was concluded at JPY 49,799/t ($348/t) FAS. Bangladeshi mills are now looking to replenish inventory for post-monsoon production.
  
  
• Turkiye: In a recent deal concluded by a Turkish mill, imported scrap prices have increased, after five months of consecutive decline. A Mediterranean region-based mill booked a European bulk cargo comprising HMS (80:20) and shredded at $352/t and $377/t CFR Iskenderun, respectively. Market participants believe this price correction is probably due to a slight improvement in the supply side (Europe and US). Additionally, the Turkish rebar market has also improved somewhat.
  
  

Recent deals

Around 15,000 t of H2 bulk cargo was booked by a Bangladeshi mill at $348/t FAS Japan.
Australian-origin 500 t of HMS was sold at $405/t CFR Mundra

Price assessments

• India: UK-origin shredded scrap offers at $420/t CFR Nhava Sheva, unchnaged d-o-d.
  
  
• Pakistan: UK-origin shredded scrap offers at $422/t CFR Qasim, up by $2/t d-o-d.
  
  
• Bangladesh: Offers for UK-origin shredded scrap were at $428/t CFR Chattogram, moving up by$3/t d-o-d.
  
  
  
• Turkiye: US-origin HMS 1&2 (80:20) prices inch up d-o-d, at $352/t CFR Turkiye.
  
  

Outlook

The South Asian scrap market witnessed mixed sentiments. On the one hand, there is improved demand from steel producers, which is supporting prices, while there are headwinds also such as the unstable Pakistani currency and bearish Turkish finished steel market. Overall, the market is expected to remain volatile in the near term.