South Asian ferrous scrap prices witnessed a mixed trend as European shredded scrap prices declined by $3/t for India and a $1/t decline in UK-origin shredded was heard for Pakistan amid slow buying interest and suppliers revising their offers to test the market inquiry ranges. On the other hand, offers into Bangladesh from the UK/Europe increased slightly amid rising freight rates and long voyage times despite dull market sentiments. Turkish imported scrap prices continue to remain stable with limited buying interest among steelmakers owing to a moderately active steel industry.
Overview
India: Demand for imported scrap in India has declined due to disparities between bids and offers and the availability of more affordable sponge iron compared to scrap in the domestic market. Additionally, steel mills have ample steel stocks, resulting in lower production and, consequently, lower scrap consumption.
Indicative offers for shredded scrap from the US and UK/Europe were heard at $410-415/t CFR Nhava Sheva, while HMS (80:20) was assessed at $385-390/t CFR.
A steel mill official stated, “The market is quite slow. Sponge intake has increased to 15-20% as it is cheaper compared to scrap. Finished steel sales are low, which is generally a trend during the monsoon season. Notably, buyers are not interested in buying shredded.”
Another trader source commented, “No deals are happening from the UK because of higher freight rates. UK yards are mostly busy supplying to Turkiye and are not active in India as generation is also less.”
According to BigMint’s vessel line-up data, a vessel with 10,527 t of scrap from Japan is expected to arrive at Paradip around 1 August. Another vessel from New Zealand, carrying 27,849 t, is scheduled to dock at Kandla today. A third vessel, already at berth at Paradip, is unloading 31,100 t of scrap from the USA. Currently, there are four vessels –two at Paradip and two at Kandla, including one with 21,000 t of mixed scrap.
Pakistan: Demand for imported scrap in Pakistan has remained limited and driven by necessity due to increased manufacturing costs from recent hikes in electricity and gas charges. Steel mills’ margins have been squeezed as they are unable to raise finished steel prices due to limited demand for rebars in the domestic market. Indicative offers for shredded scrap from the UK/Europe were assessed at $425-430/t CFR Qasim.
Bangladesh: The demand for imported scrap has remained moderate due to disruptions caused by recent protests. However, a few deals have been concluded in the last couple of days, and buyers have shown interest in material from the UAE, Australia, and New Zealand.
A trader revealed, “Most of our buyers are currently asking to source from the UAE, Australia, and New Zealand, we also heard that customs scrutiny has increased in the UAE. We have been supplying a significant quantity from Malaysia and Singapore, but recently, due to freight increases and container shortages, no bookings have happened. In the last four weeks, we have not received any firm offers that buyers are interested in, and it is not a good market for suppliers.”
Indicative offers for shredded scrap from the UK/Europe were heard at $427-430/t CFR Chattogram, while HMS (80:20) was assessed at $405-410/t CFR.
Turkiye: The Turkish imported ferrous scrap market remained steady, with little buying interest from Turkish mills, which focused on importing billets from the Far East. Offers for US-origin bulk HMS (80:20) were unchanged at $389/t CFR, with US/Baltic-origin scrap offered at $388-391/t CFR.
Notably, EU-origin scrap was priced slightly lower. Turkish mills favoured billets due to their cost-effectiveness, with imported billets at $520/t compared to $560/t for scrap-based production. As per recent reports, nearly 300,000 t of billets were recently booked by Turkish mills, potentially reducing scrap imports for September and possibly lowering prices to $380/t CFR.
Price assessments
India: UK-origin shredded scrap indicatives were assessed at $414/t CFR Nhava Sheva, down by $3/t d-o-d.
Pakistan: UK-origin shredded indicatives were assessed at $428/t CFR Qasim, down by $1/t d-o-d.
Bangladesh: UK-origin shredded prices were assessed at $430/t CFR Chattogram, up by $2/t d-o-d.
Turkiye: US-origin HMS (80:20) bulk prices were assessed unchanged at $389/t CFR Turkiye, d-o-d.
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