Today, South Asian ferrous scrap offers saw a slight increase following global cues. However, buying interest remained minimal among key buyers. Indian buyers remained subdued, while Pakistani buyers faced payment delays and weak domestic steel demand. Bangladeshi buyers showed some activity, but preferred container bookings due to delays in letters of credit (LC) approvals.
Shredded scrap offers rose by $3/t in India, $1/t in Pakistan and Bangladesh. Bulk HMS (80:20) offers to Turkiye increased by $1/t d-o-d.
Overview
Indian buyers showed reluctance in future scrap bookings, citing slow finished steel sales and limited requirements from mills. Prices of bulk shredded scrap from the US ranged from $410-415/t, while HMS (80:20) is offered at $395-400/t, influenced by recent hikes in Turkish bulk HMS prices. Over the past three months, Indian buyers have only booked 2-3 bulk vessels, indicating the prolonged subdued demand.
Offers for shredded scrap in containers stand at $416-420/t, with bid interaction at $400-405/t for Europe-origin materials. HMS from the EU to West Coast India is priced at $385-390/t, while materials from West Africa are slightly cheaper by $10/t, factoring in freight charges and quality assurance.
The Pakistani market is experiencing a significant slowdown, with Ramadan typically contributing to decreased activity, but this year’s downturn is even more pronounced. Payments are currently stalled, and sales are notably depressed, with demand virtually nonexistent. Indicative offers for shredded scrap from Europe were assessed at $415-420/t CFR.
Meanwhile, in the Bangladeshi imported scrap market, activity remained moderate. Buyers predominantly opted for container bookings over bulk shipments due to issues with LCs. Indicative offers for shredded scrap from Europe were assessed at $415-420/t CFR, while HMS (80:20) scraps were priced at $400-405/t CFR.
Turkish deep-sea imported ferrous scrap prices inched up to $390/t CFR. Turkish mills hesitated to raise offers above $395-$400/t CFR due to potential electricity price hikes in April and weak steel demand. Suppliers in Europe anticipated higher prices, but market realities may differ, with dockside prices at Euro 310/t ($335/t) delivered.
Price assessments
India: UK-origin shredded scrap indicatives were assessed at $418/t CFR Nhava Sheva, up by $3/t d-o-d.
Pakistan: UK-origin shredded scrap indicatives were assessed at $420/t CFR Qasim, up by $1/t.
Bangladesh: UK-origin shredded scrap prices were assessed at $416/t CFR Chattogram, up by $1/t.
Turkiye: US-origin HMS (80:20) bulk prices were assessed at $390/t CFR Turkiye, up by $1/t.
Outlook
In the near future, South Asian imported ferrous scrap offers are expected to stay elevated due to suppliers’ firm stance and significant restocking demand from Turkiye, the largest scrap importer. Other markets are likely to mirror this trend. However, the sustainability of these higher offers in the long run is uncertain, given the subdued buying interest observed across India and Pakistan.
