South Asia's imported scrap market starts the week quiet

The imported scrap market in South Asia began the week on a muted note, with offers largely unchanged from last weekend. Turkish buyers are waiting for price direction after a couple of deals concluded last week. Meanwhile, Indian buyers remain active in the market with small parcels of deals at a workable price. Pakistani and Bangladeshi-based buyers have opted for the wait-and-watch strategy due to the Eid holidays that will begin soon.

India

The imported scrap market in India continued to move at a slow pace, with some small quantities booked last weekend. Buyers are looking for further price corrections, while some steel producers are waiting for the next round of Turkish deals for a better market outlook.

Pakistan

Pakistan's imported scrap market has been quiet since last weekend, with most buyers waiting and watching ahead of the Eid holidays. Trade activities have remained slow due to the lack of letter of credit (LC) openings and liquidity issues. Offers are at $435/t CFR levels, unchanged from the last closing.

Bangladesh

Another prominent scrap importer, Bangladesh, has also seen silence in the imported scrap market as the week begins. Suppliers and buyers are holding out for now, and waiting for the market's direction. Offers for bulk material have moved up after the Kanto tender concluded earlier in the month, but the limited availability of containerised scrap offers in the market has kept buyers cautious as they await the price correction. Due to recent changes in freight rates, buyers are actively booking material from Australia.

Turkiye

Major scrap buyer, Turkiye, is also maintaining silence after a couple of deals concluded last week. In the absence of buyers, imported scrap offers inched down. Meanwhile, suppliers are trying to push offers above $390/t for July/August shipments.

SteelMint's assessments for USA-origin HMS 1&2 (80:20) are at $385/t CFR levels, unchanged from Friday.

What does this mean for the market?

The muted start to the week suggests that buyers are still cautious about the market outlook. However, there is some activity in the Indian market, and prices may start to move if there is more demand. In the meantime, suppliers will be looking to push prices up, especially for July/August shipments.

Price assessments

• European shredded scrap offers into India stood at $430-435/t CFR Nhava Sheva, unchnaged from the last closing.
  
  
• UK-origin shredded scrap prices into Bangladesh were assessed at $455-460/t CFR Chattogram, unchanged from Friday.
  
  
• UK-origin shredded scrap prices into Pakistan were assessed at $435/t CFR Qasim, unchanged from Friday.