Today, South Asian ferrous scrap prices displayed a mixed trend. In Pakistan and Bangladesh, offers experienced a slight increase following recent deals, although inquiries remained limited and need-based. In India, buyers continued to stay reserved due to a price gap.
Shredded scrap offers stayed stable in India, while witnessing a $2/t increase in Pakistan and Bangladesh. Bulk US HMS (80:20) scrap offers decreased by $3/t compared to the last closing on Friday.
Market overview
India: In India, the interest in purchasing imported scrap remained subdued due to a substantial price gap between offers and bids. Furthermore, the presence of more affordable alternatives in the domestic market, such as domestic scrap and sponge iron, have led buyers to adopt a cautious stance.
Shredded scrap offers from Europe were observed at approximately $410-415/t CFR Nhava Sheva. However, bids were at around $400-405/t CFR. HMS (80:20) was priced around $395-400/t CFR, while bids fell below at around $380/t CFR levels.
A steel mill official stated, “We have sufficient inventories until March, with a focus on domestic procurement. Additionally, we are opting for sponge iron in the charge mix for its cost-effectiveness. Consequently, there is currently no interest in booking imported scrap.”
A representative from a trading company emphasised key concerns: “The imported scrap market in India is currently experiencing a lacklustre phase. Prices are deemed unviable for the majority of participants. Finding a reasonable price is challenging, especially with Turkiye’s prices elevated at the $410-415/t level. Additionally, recent issues with the Red Sea have inflicted suffering due to high freight rates. Managing all the associated price hikes internally is further complicating business operations at this time.”
Pakistan: Today in Pakistan, the demand for imported scrap remained subdued, primarily influenced by a sluggish finished steel sector in anticipation of the upcoming elections in February. Shredded scrap offers from Europe were evaluated at $435-440/t CFR Qasim.
A steel mill representative highlighted, “Rebar sales are slow, with some mills offering below market rates. The dip in sales is attributed to the seasonal lull in winters, and the approaching elections have led to hesitancy in bulk bookings.”
Additionally, a steel mill official mentioned, “Deals for around 10,000 t from the UK and Europe closed at $438-440/t CFR Qasim last week. Today, we received an offer of $445/t CFR; however, buying interest remains sluggish.”
Bangladesh: Limited purchasing activity was observed for imported scrap in Bangladesh, with the market expected to return to normalcy in a couple of the days following the aftermath of the recent elections. Shredded scrap offers from Europe were evaluated at $440/t CFR Chattogram, while HMS (80:20) was priced at $420/t CFR.
Turkiye: Today, the imported ferrous scrap prices witnessed a decline, influenced by recent deals and market uncertainty. An EU-origin deal was confirmed by an Iskenderun mill, involving 22,000 t of HMS (80:20) at $410/t CFR, along with 13,000 t of shredded and bonus scrap at $435/t CFR and $430/t CFR, respectively. Additionally, a US-origin deal was reportedly booked by the same mill for 30,000 t of HMS (95:5), 10,000 t of shredded, and 10,000 t of PNS at an average price of $435/t CFR. Indicative tradable values for US/Baltic origin HMS (80:20) ranged between $415-$425/mt CFR.
A Turkish mill source expressed the expectation of an upward trend in scrap prices in the near term.
Recent deals
- About 500-1,000 t of PNS scraps were sourced from Malaysia at $445/t CFR Chattogram.
- Approximately 500-1,000 t of PNS scraps were bought from Hong Kong at $447/t CFR Chattogram.
- Around 500 t of shredded scrap was booked from Europe at $440/t CFR Qasim.
- A parcel of 500-t of shredded scrap was booked from Europe at $439/t CFR Qasim.
Price assessments
India: UK-origin shredded scrap indicatives were assessed stable at $415/t CFR Nhava Sheva.
Pakistan: UK-origin shredded scrap indicatives were assessed at $439/t CFR Qasim, up by $2/t from the last closing on Friday.
Bangladesh: UK-origin shredded scrap prices were assessed at $440/t CFR Chattogram, up by $2/t from the last closing.
Turkiye: US-origin HMS (80:20) bulk prices were assessed at $419/t CFR Turkiye, down by $3/t from the last closing.
Outlook
Imported scrap offers are expected to exhibit volatility as Indian buyers continue to express reluctance at current price levels. In Pakistan, market activities are anticipated to remain slow with approaching elections. In contrast, Turkiye may consider restocking ahead, fuelled by optimism following recent deals. However, uncertainty prevails as European sellers remain firm, unwilling to lower prices due to higher collection costs.
