South Asia's imported scrap market starts week on slow note

South Asia's imported scrap market witnessed a slow start to the week on Monday. However, some transactions were recorded towards last weekend in Bangladesh.

Meanwhile, Pakistan-based steel mills are still looking for market clarity. Overall, imported scrap prices continued their downtrend, considering the unfavourable market sentiments in domestic markets.

Market updates

• India: The imported scrap market in India witnessed a downtrend at the start of the week on Monday. However, some transactions were recorded towards last weekend as market players opted to watch market activities closely.
  
  

Imported scrap prices hovered at $405-410/t CFR Nhava Sheva. Buyers are looking for further price correction. Notably, the northern regions, witnessing floods last week, are now under control. Hence, industry experts believe that trade activities are likely to improve this week.

"A weak market trend and negative sentiments are likely to continue for another 15 days. Active domestic procurement by mills is also unlikely at this juncture," said a scrap trader.

"Market sentiments are not positive yet," said another prominent scrap trader.

• Pakistan: The imported scrap market in Pakistan continued to maintain a downtrend on the back of the sluggish economic situation, letter of credit (LC) issues and dull finished steel demand. Steel producers continue to wait for clearer market directions. Additionally, people are cautious of the volatile currency exchange.
  
  

Heavy rainfall in many regions weighed down scrap consumption, since production took a hit. "The domestic market is bearish in steel and scrap as well," said a scrap dealer.

• Bangladesh: The imported scrap market in Bangladesh witnessed silence at the beginning of the week. However, some containerised scrap deals were heard to have been concluded towards the last weekend as offers have slightly come down. Buyers are likely to continue active bookings.
  
  
• Turkiye: Turkish imported scrap prices continue to decline. Steelmakers kept pushing for better terms because of the current weakening in the rebar and semis prices in the domestic market. Market experts believe that lower scrap prices will be seen in next transactions.
  
  

Outlook

Market experts believe that the downtrend in imported scrap prices is likely to continue in the coming weeks. However, if the economic situation in India improves, or if the floods subside, then scrap prices could start to recover. If demand for finished steel remains weak in Pakistan and Bangladesh, then scrap prices could decline.

Recent deals

• Australia-origin 2,000 tonnes (t) of shredded have been booked at $395/t CFR Laem Chabang, Thailand.
  
  
• UK-origin shredded 2,000 t have been booked at $425/t CFR Chattogram, Bangladesh.
  
  

Price assessments

• India: UK-origin shredded scrap offers stand at $404/t CFR Nhava Sheva, unchanged from last the revision.
  
  
• Pakistan: UK-origin shredded scrap offers were at $405/t CFR Qasim, down by $5/t from Friday.
  
  
• Bangladesh: Offers for UK-origin shredded scrap were at $430/t CFR Chattogram, down by $5/t from Friday.
  
  
• Turkiye: US-origin HMS 1&2 (80:20) prices stood at $367/t CFR Turkiye, down by $3/t from Friday.