Today, the South Asian ferrous scrap market maintained stability overall. Indian buyers persisted in their lack of interest, primarily weighing the feasibility of domestic scrap prices against imported offers. Meanwhile, Pakistani buyers remained inactive due to Ramadan and a subdued steel market. However, Bangladeshi buyers were relatively more active.
Shredded scrap offers remained steady in India and Bangladesh, while they increased by $2/t in Pakistan. Additionally, US bulk HMS (80:20) offers to Turkiye remained unchanged compared to the last closing on Friday.
Overview
Today, India‘s market for imported scrap remained subdued, lacking any significant buying activity at existing prices. Comparatively, domestic scrap prices remained favourable in contrast to offers for imported scrap. Indicative offers for shredded scrap originating from the US and Europe hovered around $410-420/t CFR, while offers for HMS (80:20) from West Africa and Europe stood at approximately $375-390/t CFR.
According to information from a trading source, “The scrap market could experience an uptick once there is notable interest from buyers for future bookings. Over the past three months, there have been only two to three bulk vessel bookings. Furthermore, offers for EU shredded scrap persist at $416-420/t with bids around $405-410/t, and domestic scrap prices remain economically viable, subject to minor fluctuations.”
Furthermore, in Pakistan, market operations have slowed as Ramadan observance has entered its last phase. During the final ten days, individuals typically prioritise religious observance over work, as noted by market participants. Moreover, the escalation in fuel expenses and the sluggish demand for finished steel have led steelmakers to suffer substantial losses, directly dampening their interest in imported scrap.
Additionally, buyers have faced significant hurdles due to a dollar crisis, resulting in detentions and demurrages at ports.
Indicative offers for shredded scrap originating from Europe/the UK were observed at $420-425/t CFR Qasim. Meanwhile, offers from the UAE stood at $425/t for fabrication, $400/t for HMS sheared, and $430/t for shredded scrap. However, no deals have been reported from the UAE at this time.
In Bangladesh, market activities have sustained a moderate pace, with shredded scrap offers from Europe/UK evaluated at $415-420/t CFR Chattogram, and HMS (80:20) priced at $400-405/t CFR. According to a market insider, Bangladeshi buyers have secured approximately 6 to 7 bulk scrap vessels, totalling over 200,000 tonnes, for March 2024.
Price assessments
India: UK-origin shredded scrap indicatives were assessed at $418/t CFR Nhava Sheva, unchanged against the last closing on Friday.
Pakistan: UK-origin shredded scrap indicatives were assessed at $422/t CFR Qasim, up by $2/t compared to last Friday.
Bangladesh: UK-origin shredded scrap prices were assessed unchanged at $416/t CFR Chattogram.
Turkiye: US-origin HMS (80:20) bulk prices were assessed stable at $390/t CFR Turkiye.
Outlook
Imported ferrous scrap offers in South Asian markets are anticipated to remain range-bound, with fluctuations of around $5/t due to subdued buying interest. Nevertheless, offers are likely to maintain a firm stance owing to active interest from Turkish buyers, which could influence sellers to hold their positions.
