Today, the South Asian ferrous scrap market experienced a sluggish pace. While Indian buyers displayed increased inquiries, the overall momentum remained slow. The Pakistani market, on the other hand, has nearly dried up due to Ramadan and mill shutdowns for maintenance during this off-season period. Bangladeshi buyers continue to encounter challenges with LC approvals, with only a few deals reportedly under negotiation.
Shredded scrap offers in India saw a slight decline of $2/t, while they remained unchanged in Pakistan and increased by only $1/t in Bangladesh. Meanwhile, US bulk HMS (80:20) offers to Turkiye remained stable d-o-d.
Overview
Today in India, there was a slight uptick in inquiries, albeit the pace of activity remained sluggish. This increase in inquiries was driven by a shortage in the domestic market, with a few deals reported from West Africa and the US being recently booked.
According to a trader source, “Imported scrap bookings continue to hover at low levels, with a few buyers showing interest in HMS and shredded scrap from Australia, Brazil, and Latin America, particularly in response to the fluctuating trend in domestic scrap prices in recent days.”
Indicative offers for shredded scrap from the US and Europe were observed at $410-416/t CFR, while HMS (80:20) offers from West Africa and Europe were assessed in the range of $375-388/t CFR.
Meanwhile, in Pakistan, market activities have nearly halted due to the ongoing Ramadan festivities, compounded by major steel mills undergoing maintenance shutdowns during the off-season. Today, no firm inquiries or deals were reported for imported scrap. Indicative offers for shredded scrap from Europe/UK were observed in the range of $420-425/t CFR Qasim.
Furthermore, concerning the Bangladeshi imported scrap market, buyers continued to encounter issues with LC approvals and were engaged in negotiations with suppliers. As disclosed by a trader source, no bookings have been made in the last two weeks; however, there is an ongoing negotiation for a bulk booking with Australia for HMS and PNS scraps, which is yet to be finalized.
Indicative offers for shredded scrap from Europe/UK were reported at $415-420/t CFR Chattogram, while HMS (80:20) was priced at $400-405/t CFR.
At the beginning of April, the Turkish import scrap market paused as stakeholders awaited clarity. The recent municipal elections cooled business activity. Market players anticipate heightened activity post-elections and holidays in mid-April, citing current uncertainty surrounding the lira.
Price assessment
India: UK-origin shredded scrap indicatives were assessed at $416/t CFR Nhava Sheva, down by $2/t d-o-d.
Pakistan: UK-origin shredded scrap indicatives were assessed at $422/t CFR Qasim, unchanged d-o-d.
Bangladesh: UK-origin shredded scrap prices were assessed at $417/t CFR Chattogram, up by $1/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, fluctuations are expected in the offers for imported ferrous scrap. With the approach of Eid and related holidays, the Pakistani market is likely to remain subdued. Meanwhile, Turkish buyers are waiting for clearer conditions before engaging in transactions for May shipments.
