The South Asian scrap market saw mixed sentiments as the current fiscal year in India is about to end and Pakistan and Bangladesh are busy with the ongoing Ramadan. These factors culminated into less buying interest.
Meanwhile, recent deals heard for HMS grade were done at lower prices in India, reducing buying interest on expectation of further price corrections.
Imported scrap prices were slightly up today for Dubai and other origins, considering strong domestic market sentiments.
In Pakistan, ferrous scrap offers recently dropped to around $470/t. But some deals were concluded at these levels for limited quantities. Slow finished steel sales too remained unsupportive.
On the other hand, Turkiye’s energy prices have fallen for the past two months, leading to lower conversion costs. The cost of converting scrap to billet is now below $190/t. Purchasing steel billets at $620-$630/t CFR looked appealing if the scrap is purchased at $445/t CFR. Turkish mills evaluated the possibility of billets imports as an alternative.
Overall, the current situation in the South Asian ferrous scrap market seemed slow. Turkey’s situation offered an opportunity for purchasing steel billets at favourable prices.
Rumours on the Dubai scrap export ban up to September 2023 turned out to be false. No confirmation or notice has been uploaded on the official website till now.
Recent deal:
- A parcel of 2,000 t of Europe-origin shredded has been booked at $470/t CFR Qasim.
Price assessments
- Europe-origin shredded scrap offers into India stood at $468/t CFR Nhava Sheva, up by $10/t d-o-d.
- UK-origin shredded scrap prices in Bangladesh stood at $500/t CFR Chattogram, down by $5/t from last offers.
- UK-origin shredded scrap prices in Pakistan stood at $473/t CFR Qasim, down by $5/t from previous offers.
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