Today, the South Asian ferrous scrap market exhibited a mixed trend. In India, there was a slight uptick in inquiries due to shortages in the domestic market. However, in Pakistan and Bangladesh, market activities remained subdued due to Ramadan and delays in LC approvals while a few contracts remained under negotiation. Shredded scrap offers remained steady in India, while they increased by $2/tonne (t) in Pakistan and by $3/t in Bangladesh. Bulk HMS (80:20) offers to Turkiye remained unchanged d-o-d.
Overview
India: The imported scrap market in India experienced a slight increase in activity, driven by heightened inquiries amidst shortages in the domestic market. Shredded scrap offers from the US and Europe were priced at $410-415/t CFR, while HMS (80:20) offers from West Africa and Europe ranged between $380-390/t CFR.
From Latin America, HMS 1 offers were reported at $400-405/t CFR, while Yemen offered HMS bundle mix scraps at around $375-380/t CFR.
A major trading house representative noted an improvement in market sentiment, fuelled by increased inquiries for imported scrap due to shortages caused by domestic suppliers aiming to bolster market sentiment. Additionally, active Turkish buyers provided support, instilling confidence in global suppliers on maintaining firm offers.
Meanwhile, bulk shredded scrap offers were reported at $430-435/t CFR from the US.
Pakistan: Meanwhile, in Pakistan, demand for imported scrap has nearly vanished due to a sluggish steel market and the ongoing Ramadan period. Furthermore, with Eid holidays set to begin later this week, buyers are staying away from the market. Shredded scrap offers from Europe were priced at $420-425/t CFR Qasim, while offers from the UAE were at around $430/t CFR.
Bangladesh: In Bangladesh, market activities continued at a moderate pace, with a few bulk deals under negotiation. Indicative offers for shredded scrap in containers from Europe/the UK were evaluated at $415-420/t CFR, while HMS (80:20) stood at $400-405/t CFR.
Bulk US HMS (80:20) offers were reported at $395-400/t CFR, while H2 scrap from Japan was priced at $390-392/t CFR.
Turkish deep-sea imported ferrous scrap prices held steady amidst sluggish market activities. Indicative values for US/Baltic-origin HMS (80:20) hovered at around $390/t CFR. Market sentiment reacted to recent Turkish local elections, with potential implications for an early general election due to economic concerns. Market watchers awaited US domestic scrap market trends for price direction. US exports to Turkiye targeted $390/t CFR, pending stability in US domestic settlements.
Price assessments
India: UK-origin shredded scrap indicatives were assessed unchanged at $416/t CFR Nhava Sheva, d-o-d.
Pakistan: UK-origin shredded scrap indicatives were assessed at $424/t CFR Qasim, up by $2/t d-o-d.
Bangladesh: UK-origin shredded scrap prices were assessed at $420/t CFR Chattogram, up by $3/t d-o-d.
Turkiye: US-origin HMS (80:20) bulk prices were assessed stable at $390/t CFR Turkiye.
Outlook
In the near term, the imported scrap market in South Asia is anticipated to stay range-bound due to limited activity and buyer hesitancy regarding current price trends. India’s market may witness a slight uptick due to shortages domestically, while Pakistan is projected to remain sluggish as buyers prepare for Eid holidays later this week. Turkish buyers are adopting a cautious approach, awaiting further clarity on US domestic market settlements before making significant moves.