The South Asian ferrous scrap market experienced a downturn due to pressure from the supply side. Indian buyers exercised caution amidst declining offers, leading to a subdued market. However, there is hope for increased activity if imported scrap prices align with domestic rates. In Pakistan, market activity remained slow, while Bangladesh saw a slight improvement.
Shredded scrap offers edged down by $2/t in India and Bangladesh while they remained unchanged in Pakistan. US bulk HMS (80:20) offers to Turkiye dropped by $10/t compared to last closing on Friday.
Overview
Today, the imported ferrous scrap market in India continued to experience dullness as buyers remained cautious amid a persistent decline in offers. However, there is a sense among buyers that if imported scrap prices align with those of domestic scrap, booking activities will pick up. Transactions in the market mainly involve arrivals or scrap originating from non-European sources.
Indicative offers for shredded scrap from the UK/Europe were reported at $405-410/t CFR, while those from the US stood at around $400/t CFR. Offers for HMS (80:20) ranged from $380-390/t CFR.
In Pakistan, market activities continued to languish due to a lack of buying interest, fuelled by anticipation of further drops in offers and a slowdown in the domestic finished steel market. Indicative offers for shredded scrap from Europe were reportedly in the range of $425-430/t CFR.
On the contrary, market activities in Bangladesh have shown a slight improvement, with a few deals being finalised today. According to market sources, downstream demand has increased, and there has been a relaxation in LC approvals. Additionally, there is speculation in the market about a potential decrease in the value of the dollar, although this could not be confirmed at the time of reporting.
A representative from a trading company mentioned, “Mills are expected to negotiate for lower scrap prices due to a significant increase in electricity costs, estimated to rise by around 30-40%. This would inevitably elevate production costs.”
Indicative offers for shredded scrap from Europe/UK were heard at $420-425/t CFR, while HMS (80:20) were assessed at $405-410/t CFR.
Last weekend, Turkish mills located in the Aegean and Mediterranean regions finalised a couple of bulk scrap deals from the US. Prices for HMS (80:20) stood at $385/t, while shredded and bonus scrap were priced at $405/t each. Additionally, HMS (85:15) was priced at $396/t, with shredded scrap priced slightly higher at $411/t. Market observers predict a downward trajectory in prices attributed to the diminishing domestic demand for scrap in the US and the expected sluggishness in the steel market.
Price assessments
India: UK-origin shredded scrap indicatives were assessed at $408/t CFR Nhava Sheva, down by $2/t from last Friday.
Pakistan: UK-origin shredded scrap indicatives were assessed at $426/t CFR Qasim, unchanged against the previous closing on Friday.
Bangladesh: UK-origin shredded scrap prices were assessed at $423/t CFR Chattogram, down by $2/t from the last closing.
Turkiye: US-origin HMS (80:20) bulk prices were assessed at $385/t CFR Turkiye, dropped by $10/t as against the previous closing on Friday.
