The South Asian ferrous scrap market remained stable today. In India, mixed sentiments were reported, with some buyers experiencing a shortage of scrap while others noted a lack of urgency due to low demand and production. Pakistan observed a national holiday resulting in minimal market activity. In Bangladesh, the market remained slow as buyers showed little urgency amid the off-season, focusing on small transactions and preferring short transit materials.
Shredded scrap offers remained unchanged d-o-d across India, Pakistan and Bangladesh. Bulk HMS (80:20) offers from the US to Turkiye remained stable today.
Overview
India: In India, imported scrap buying remained moderate as buyers sought to source scrap below the asking price from suppliers. In some regions, adverse heat and low demand led to production levels falling below normal capacity. Additionally, a few steel mills reported a shortage of scrap in the market.
As a result, offers for shredded scrap from the UK, Europe, and the USA dropped to around $415-418/t CFR Nhava Sheva, while HMS (80:20) offers from the UK, Europe, and West Africa were assessed at $395-400/t CFR.
A primary steel mill official said, “Domestic availability of scrap is poor right now. Until bulk vessels connect to Indian ports, this situation will persist.”
A representative from a trading company said, “Buyers are less interested due to the bid-offer disparity and are expecting a drop in prices.”
Pakistan: Pakistan observed a national holiday today for Youm-i-Takbeer resulting in no firm offers or bids. Market activities remained slow due to a sluggish domestic finished steel market and cash flow crunch. Indicative offers for shredded scrap from the UK and Europe were assessed at $415-418/t CFR Qasim.
Bangladesh: The Bangladeshi market remained slow as buyers showed no urgency due to the off-season. Market activity was slow, with transactions involving only small quantities. Shredded scrap offers from the UK/Europe were heard at around $415-425/t CFR Chattogram, while HMS (80:20) offers were at $395-405/t CFR.
A representative from a trading company said, “Currently, we are sourcing primarily with suppliers from Australia, Sweden, Canada, and Chile. US shredded scrap offers are at $425/t, which are not viable. Nothing could be sourced from the UK/EU due to higher freight rates. Moreover, buyers are preferring short transit material from Singapore, Malaysia, and Hong Kong.”
Price assessments
India: UK-origin shredded scrap indicatives were assessed at $416/t CFR Nhava Sheva, stable d-o-d.
Pakistan: UK-origin shredded indicatives were assessed unchanged d-o-d at $418/t CFR Qasim.
Bangladesh: UK-origin shredded prices were assessed flat at $419/t CFR Chattogram.
Turkiye: US-origin HMS (80:20) bulk prices were assessed stable at $378/t CFR Turkiye.
Outlook
In the near term, imported ferrous scrap offers are likely to remain volatile as buyers across South Asian markets are not showing any appetite for imported scrap due to factors such as bid-offer disparity, cash flow crunch, and an unsupportive domestic steel market.
Additionally, in India, market activities may slow down temporarily as the elections are expected to conclude in the coming week. In contrast, the approach of Eid and the subsequent holiday period may affect market activities in Pakistan and Bangladesh from the second week of June onwards.