South Asia's imported ferrous scrap market slow; Indian buyers active

The South Asian imported ferrous scrap market remained slow with fewer transactions seen today as major buying countries viz. Pakistan and Bangladesh were absent. However, Indian buyers remained active and a bulk cargo was heard to have been booked at workable prices.

India

India's imported ferrous scrap buyers showed interest and some bookings were also heard to have been concluded. Around 40,000 t of UK-origin bulk cargo was heard to be booked by a Chennai-based steel producer recently (Unconfirmed at the time of publishing). The cargo comprising shredded was booked at $420/t and HMS at $405-410/t on a CFR Chennai basis. However, the deal could not be confirmed at the time of publishing this report.

On the other hand, containerised scrap buyers booked some parcels of shredded and PNS, despite the slight increase in offers. However, buyers believe that this is a short-term price hike.

"Although the market is picking up slowly, this price hike might not be accepted by buyers so soon," said a scrap trader.

Pakistan

Pakistani steel producers continue to observe the market closely due to bearish market sentiments. Meanwhile, increased electricity tariff has already added to the cost of production, leading to a rise in finished steel prices.

Imported scrap prices continued to move up and fresh offers are quoted at $410-415/t CFR. However, deals remain absent at these levels.

Bangladesh

In Bangladesh's market, containerised scrap prices picked up slightly following the global scrap price trend. Sellers to the South Asia market raised offers on active inquiries from Indian steel producers.

On the other hand, bulk buyers are actively inquiring about US-, Australian- and other origin scrap. This indicates that bulk bookings are likely to take place in the near term.

Turkiye

Despite lower imported scrap prices, negotiations remained slow due to limited demand from finished and semi-finished steel producers. Suppliers are not in a hurry to give further discounts. Bulgaria-origin containers were sold to a Turkish mill in a short sea deal which included 1,700 t of HMS (80:20) at $315/t CFR.

Price assessments

India: UK-origin shredded scrap offers inched up to $415/t CFR Nhava Sheva.
Pakistan: UK-origin shredded scrap offers moved up slightly to $416/t CFR Qasim.
Bangladesh: Offers for UK-origin shredded scrap were at $424/t CFR Chattogram, stable d-o-d.
Turkiye: US-origin HMS 1&2 (80:20) prices up by $2/t at $350/t CFR Turkiye.

Outlook

There is demand from Indian steel producers, however, the overall market sentiment is still bearish due to factors such as increased electricity tariffs, limited demand from finished and semi-finished steel producers, and high prices. If demand from Indian steel producers picks up further, the market could see some improvement. However, if bearish sentiment continues, further price declines may be seen.