The South Asian imported ferrous scrap prices showed an upward trend, even in the absence of significant buying interest. Indian buyers largely remained on the sidelines, but a few deals were concluded for turning boring scraps and HMS. However, bookings for shredded scrap remained subdued. The Pakistani market was closed today due to the Kashmir Day holiday. In Bangladesh, the market was moderate with a slight increase in offers, reflecting improved market sentiments.
Notably, shredded scrap offers increased by $2/t in India and Pakistan, while witnessing a $3/t uptick in Bangladesh. Additionally, US bulk HMS offers to Turkiye also edged up by $1/t d-o-d.
Market overview
India: In India, demand for imported scrap continued to remain sluggish today, primarily due to a notable disparity between bids and offers. Indicative offers for shredded scrap from Europe were in the range of $415-420/t CFR Nhava Sheva, while HMS (80:20) was hovering around $395-400/t CFR.
HMS (80:20) offers from West Africa were reported at $385-390/t CFR Nhava Sheva, with a few deals concluded at the $385/t level.
An official from a steel mill commented on the current market conditions, stating, “The market is currently slow, with no buyers showing interest in booking shredded scrap or even inquiring about offers due to the perceived unviable prices.”
A representative from a trading company further added, “It has been a considerable amount of time since we last made purchases in India. However, the challenges arise as finished steel sales are not providing sufficient support, creating an environment where it seems unlikely for inquiries to increase in India this week.”
Pakistan: Today, Pakistan observed a public holiday in observance of Kashmir Day, leading to a lack of firm offers or bids in the market. However, the last reported offers for shredded scrap from Europe were evaluated at $435-440/t CFR Qasim.
Furthermore, market activities are expected to remain sluggish throughout the week due to national elections scheduled for 8 February.
Bangladesh: In Bangladesh, demand for imported scrap registered a moderate level today, with indicative offers for shredded scrap from Europe heard at $430-435/t CFR Chattogram. Additionally, HMS (80:20) was assessed at $410-415/t CFR.
An official from a steel mill provided insight, stating, “Demand for imported scrap has shown improvement compared to the previous month, as bank approvals for fresh LCs have eased. Furthermore, there are positive signs in the domestic steel market, indicating an overall improvement.”
Turkiye: Turkish imported ferrous scrap prices have slightly increased by $1/t, with sellers maintaining firm positions due to higher collection costs and a modest improvement in demand in the domestic market. Indicative tradable values for US/Baltic-origin HMS (80:20) were reported in the range of $420-425/t CFR.
Recent deals
- Approximately 250 t of turning boring scraps were booked from US at $350/t CFR Nhava Sheva.
- Around 500 t of turning boring were sourced from Europe at $355/t CFR Nhava Sheva.
- About 500 t of HMS (80:20) were booked from West Africa at $385/t CFR Nhava Sheva.
Price assessments
India: UK-origin shredded scrap indicatives were assessed at $417/t CFR Nhava Sheva, up by $2/t d-o-d.
Pakistan: UK-origin shredded scrap indicatives were assessed at $440/t CFR Qasim, up by $2/t d-o-d.
Bangladesh: UK-origin shredded scrap prices were assessed at $433/t CFR Chattogram, up by $3/t d-o-d.
Turkiye: US-origin HMS (80:20) bulk prices were assessed at $422/t CFR Turkiye, up by $1/t d-o-d.
Outlook
In the near term, imported scrap offers are expected to experience volatility due to prevailing market conditions. The Pakistani market is anticipated to remain sluggish this week due to holidays and upcoming elections. On the other hand, the Bangladeshi market may see increased bookings as market sentiments improve.
