South Asia's imported scrap market remains quiet
...
- Indian scrap buyers showing more interest in other origin cargoes
- Pakistan and Bangladesh scrap market moving at slow pace
The imported scrap market in South Asia remained quiet this week, with buyers and sellers largely staying on the sidelines. Offers inched down in the middle of this week. Buyers are looking for further discounts as disparity in domestic demand and supply is evident.
Market overview
- India: In India, steel producers are showing more interest in booking Australian material instead of UK/EU material. Steel producers factored in lower freight rates and premium quality of Australian scrap. Meanwhile, imported scrap offers have come down on low acceptance from buyers. However, buying inquiries in the domestic market for semi-finished and finished steel were limited.
Scrap offers were supported by a slow demand and moderate supply of material. "Buyers are going for other origin materials like Yemen and Singapore because of slight concessions," said a scrap trader.
- Pakistan: The imported scrap market continued to witness subdued market sentiments in Pakistan amid limited demand from the downstream sector. The severe letter of credit (LC) issue in the country for imported material is also weighing on the market. Steel producers are selling finished steel products under pressure, with no profit margin.
"Currently, the market scenario is bleak. Only after Eid holidays, we can expect to get clear direction as far as market is concerned," said a steel producer.
- Bangladesh: In Bangladesh, the negative market sentiments are weighing down the imported scrap market. The overall market is moving at a slow pace on stagnant consumption from end-users. However, steel producers are continuing to maintain rebar prices high, to keep their cash flow running. Negotiations in bulk market remained absent.
- Turkiye: Turkish imported scrap market remained silent. Because, steel producers preferred to stay out of the market amid low finished steel sales. Steel producers are reluctant to step into negotiations with scrap suppliers, as they are still waiting for a better market outlook.
Recent deal
In a recent deal heard, around 500 tonnes (t) of shredded have been booked at $428/t CFR to NHSV/Mundra. However, the deal remained unconfimed.
Price assessments
- India: UK-origin shredded stood at $427/t CFR Nhava Sheva, down by $3/t d-o-d.
- Pakistan: UK-origin shredded was at $430/t CFR Qasim, down by $2/t d-o-d.
- Bangladesh: UK-origin shredded stood at $455/t CFR Chittagong, down by $2/t d-o-d.
- Turkiye: USA-origin HMS 1&2 (80:20) was at $380/t CFR Turkiye, down $2/t d-o-d.
Outlook
The imported scrap market in South Asia is expected to remain quiet in the coming weeks. This is because, buyers and sellers continue to wait for a better market outlook as Eid holidays and monsoon are about to begin.