South Asian scrap market remains muted; India lone exception

The South Asian scrap market remained muted today except India. Buyers in India remained active in booking small-parcel cargoes. Neighbouring countries Pakistan and Bangladesh witnessed a slowdown in negotiations. Turkiye, on the other hand, is yet to see an improvement in bookings after the Eid holidays.

Market overview

• India: Indian scrap buyers remained active in the market. Continuous usage of sponge iron in primary mills ensured scrap availability in the domestic market. "Scrap prices are at workable levels due to availability of sponge iron in the domestic market," said a trader.
  
  

Meanwhile, scrap buyers are likely to remain active in the market as steel producers require material for post-monsoon production. However, currently market activity has slowed down due to heavy rainfall in many regions.

• Pakistan: Imported scrap prices in Pakistan are softening as buying activity remains sluggish. Factors like heavy rainfall, dull finished steel demand, letter of credit (LC) opening restrictions and unfavourable economic conditions in the country weigh on buying interest. Notably, the southern region of the country is experiencing heavy rainfall, market participants informed.
  
  

Scrap prices have fallen by around $25/t in the last month from $440/t to $415/t CFR.

• Bangladesh: The imported scrap market in Bangladesh remains slow owing to limited demand from the downstream sector. The market remains slow due to monsoon and liquidity issues. Despite the drop in imported scrap prices, buyers are hesitant to book fresh material.
  
  
• Turkiye: Trading activity remains in pause in Turkiye's imported scrap market, as both suppliers and buyers are not in a hurry to conclude contracts. Negotiations were slow in the ferrous scrap market. In the recent round of deals, a US bulk vessel with HMS (85:15), shredded, and bonus scrap were booked at $381/t and $399/t CFR Turkiye. A European vessel with 20,000 t of HMS (80:20) was booked at $360/t for prompt shipment, which was acquired by a Marmara-based mill.
  
  

Recent deals

• Approximately 1,000 tonnes (t) of UK-origin shredded were booked at $410-412/t CFR Mundra.
  
  
• Around 500 t of Dubai-origin shredded scrap were sold at $425/t CFR Qasim.
  
  

Daily price assessment

• India: UK-origin shredded scrap offers stand at $411/t CFR Nhava Sheva, up d-o-d.
  
  
• Pakistan: UK-origin shredded scrap offers are at $413/t CFR Qasim, down by $2/t.
  
  
• Bangladesh: Offers for UK-origin shredded scrap were at $440/t CFR Chattogram, down $2/t.
  
  
• Turkiye: US-origin HMS 1&2 (80:20) prices stand at $375/t CFR Turkiye, slightly down d-o-d.
  
  

Outlook

The South Asian scrap market is witnessing mixed sentiments. While India is expected to remain active, Pakistan and Bangladesh are likely to remain muted in the near term. The impact of the monsoon season and the global economic situation will also be key factors to watch out for.