Some activity resumed in the South Asian ferrous scrap market as buyers from Pakistan cracked multiple deals today but at lower prices compared to the current offers reigning at $445-450/t. However, demand for steel is still weak.
Meanwhile, Indian buyers extended their silence and remained at the sidelines, showing a weak buying appetite. Offers remained range-bound with a marginal hike of $2-3/t seen.
Bangladesh too continued to maintain its silence amid the limits on opening new LCs. and not defining a positive market sentiment in the near term too.
“In Bangladesh, there will be an LC crisis. The mills’ scrap inventories will start to run out after another three months,” a market participant from Bangladesh informed.
“As the UK, US, and Europe get closer to the winter holidays, there will not be many offers. Additionally, loading will halt in the next 7-8 days,” a Pakistani trader informed.
Recent deal:
- Around 13,000 t of containerised shredded scrap of Europe origin has been booked at a price range of $440-442/t CFR Qasim.
SteelMint’s price assessment
- Europe-origin shredded scrap offers into India were at $448/t CFR Nhava Sheva, up by $3/t from the last offers.
- UK-origin shredded prices stood at $458/t CFR Chittagong, unchanged d-o-d.
- UK-origin shredded scrap prices were at $447/t CFR Qasim, stable d-o-d.
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