South Asia's imported scrap market quiet amid Eid; Indian buyers active

• Imported scrap prices stable in absence of market players
  
  
• Indian mills prefer sponge iron over scrap due to competitive prices
  
  

The imported scrap market in South Asia remains quiet, except India. The key scrap buying countries like Turkiye, Pakistan, and Bangladesh are away due to the ongoing Eid holidays and steel mills/buyers are unlikely to return until next week.

India

Meanwhile, Indian steel producers are active in the market and are closely observing the trends. Suppliers may take the advantage to cater to this market in the absence of other major scrap importing countries.

Indian imported scrap buyers remained active in the market and some small-volume bookings were heard to have been concluded.

"The market is less likely to go down further, and offers may remain stable," said a scrap trader. He added, buyers who were out of the imported market due to adequate material availability in the domestic market, are likely to return.

Meanwhile, in the domestic scrap market, there were limited trade inquiries. Due to low steel demand, major mills have reduced scrap purchases while some mills are preferring to use sponge iron over scrap due to price competitiveness. As per SteelMint's assessment, prices of sponge iron (CDRI) are assessed at INR 28,000-32,000/t DAP while domestic HMS (80:20) prices are hovering above the INR 36,500/t DAP levels.

Even buying inquiries for semi-finished and finished steel were limited in yesterday's trading session.

Recent imported scrap deals

• A prominent scrap trader has sold 1,500 tonnes (t) of UK shredded at $420/t, delivered to Nhava Sheva and Mundra ports.
  
  
• Around 500 t of US shredded has been booked at $418/t CFR Mundra.
  
  
• A Chennai-based steel producer has booked shredded scrap from South America (250 t) and UK/EU (200 t) at $410/t and $415/t CFR Chennai respectively.
  
  

Price assessments

• India: UK-origin shredded offers stand at $418/t CFR Nhava Sheva, $2/t down d-o-d.
  
  
• Pakistan: UK-origin shredded scrap offers stand at $423/t CFR Qasim.
  
  
• Bangladesh: UK-origin shredded offers stand at $445/t CFR Chittagong.
  
  
• Turkiye: US-origin HMS 1&2 (80:20) prices were at $380/t CFR Turkiye.
  
  

Outlook

Trade activity in the South Asian imported scrap market is likely to pick up after the Eid holidays. Also, steel demand in the region is an important factor to be considered that will have a significant impact on trading.