South Asia's imported scrap market quiet; sellers reluctant to lower prices

South Asia's imported scrap market started the week on a quiet note, but some deals were concluded towards last weekend. Buyers were cautious and waiting for discounts, while sellers were reluctant to lower prices.

Market overview

• India: In India, the market was quiet at the beginning of the month, but some buyers booked containerised material during the weekend. Offers remained range-bound at $420/t CFR but buyers were cautious, waiting for discounted prices.
  
  
• Pakistan: Elevated imported scrap offers kept steel producers on the sidelines in Pakistan. The cost of production has increased due to hike in electricity tariffs, and market sentiments are bearish. However, buyers are showing interest in imported scrap material for post-monsoon production. Fresh offers were at around $420/t CFR.
  
  
• Bangladesh: Steel mills are actively looking for feasible bulk offers in Bangladesh. Negotiations are actively happening between buyers and suppliers. Industry experts believe that bulk bookings will resume soon. Meanwhile, some containerised scrap bookings have been concluded at increased prices.
  
  
• Turkiye: The Turkish imported scrap market remained quiet at the beginning of the week. Steel producers are not as active in the market as usual, as they are focused on selling finished steel in domestic and overseas markets. Insiders believe that trading activity will remain subdued in the coming weeks.
  
  

Recent deals

• Around 500 t of UK-origin shredded was booked at $418.5/t CFR Qasim.
  
  
• UK-origin 500-1,000 t of shredded was sold at $417/t CFR Mundra.
  
  

Price assessments

• India: UK-origin shredded scrap offers remained unchanged at $418/t CFR Nhava Sheva.
  
  
• Pakistan: UK-origin shredded scrap offers inched up to $420/t CFR Qasim.
  
  
• Bangladesh: Offers for UK-origin shredded scrap were at $425/t CFR Chattogram, unchanged d-o-d.
  
  
  
• Turkiye: US-origin HMS 1&2 (80:20) prices remained stable at $350/t CFR Turkiye.
  
  

Outlook

Buyers are cautious and waiting for discounted prices, while sellers are reluctant to lower prices. The market is likely to remain slow in the near term, but could pick up if demand for finished steel increases.