Today, the South Asian ferrous scrap market experienced a decline as sellers faced pressure amid increased supply in the domestic market, exacerbated by the lack of firm demand from key importing countries such as India, Pakistan, Bangladesh, and Turkiye.
As per market sources, US domestic shredded scrap prices have dropped by $30-35/t for March, primarily due to weak demand from Southeast and South Asian markets. This has resulted in an oversupply situation on the US West Coast, prompting the redirection of surplus material, especially shredded material, to the Midwest.
Consequently, shredded scrap offers witnessed a drop of up to $3-7/t in Bangladesh and India, respectively. While remained unchanged in Pakistan. US bulk HMS (80:20) offers to Turkiye decreased by $8/tonne (t) d-o-d.
Overview
In India, buyers are adopting a cautious “wait and watch” stance due to recent price drops in the Turkish market, compounded by subdued demand in the domestic steel sector. Indicative offers for shredded scrap from the UK/Europe are at $410-415/t, while HMS (80:20) stands at $390-395/t.
An official from a rolling mill said: “Bookings may resume post-March, as people are maintaining inventories and implementing production cuts.”
A trade source noted, “Currently, Indian mills and buyers are not actively booking imported scrap due to the unsupportive steel market. Further bookings may not yield positive results if demand doesn’t pick up in the near future.”
In Pakistan, demand for imported scrap has nearly stalled due to unclear offers and a significant drop observed in the last 3-4 days. Furthermore, downstream demand from the domestic steel market remained sluggish. Indicative offers for shredded scrap from the UK/Europe stood at $425-430/t CFR.
In Bangladesh, indicative prices for shredded scrap from the UK/Europe were reported at $430-435/t, while HMS (80:20) was priced at $410-415/t CFR.
A bulk US cargo comprising 18,000 t of shredded and 12,000 t of bonus was sold at an average price of $415/t CFR Turkiye for late March shipment. As per sources, the newly derived HMS (80:20) price drops by $8/t to $395-396/t amid declining US sell-side sentiment, anticipating lower domestic scrap settlements. The Turkish market witnessed multiple offers with HMS (80:20) prices below $400/t CFR.
Price assessments
India: UK-origin shredded scrap indicatives were assessed at $413/t CFR Nhava Sheva, down by $7/t d-o-d.
Pakistan: UK-origin shredded scrap indicatives were unchanged at $430/t CFR Qasim.
Bangladesh: UK-origin shredded scrap prices were assessed at $431/t CFR Chattogram, down by $3/t d-o-d.
Turkiye: US-origin HMS (80:20) bulk prices were assessed at $395/t CFR Turkiye, down by $8/t d-o-d.
Outlook
In the near term, imported scrap offers could see additional adjustments as sellers confront pressure amid a lack of demand from major importing markets and oversupply domestically, notably in the US. Nevertheless, offers from Europe might maintain a stable range owing to factors such as the recent Red Sea crisis, elevated freight rates, and collection costs.
