The South Asian ferrous scrap market remained largely stable today. Indian buyers continued to purchase small quantities based on immediate needs, anticipating further price softening. Market activity in Pakistan and Bangladesh remained slow due to a weak finished steel market and adverse weather conditions.
Shredded scrap offers remained unchanged across India, Pakistan, and Bangladesh. US bulk HMS (80:20) offers to Turkiye inched up d-o-d.
Overview
India: In India, demand for imported scrap remained moderate, with buyers purchasing only small volumes as needed, anticipating a drop in prices. Additionally, some regions experienced bid-offer disparities, leading to less aggressive sourcing of imported scrap. This was particularly evident in northern India, where production levels were around 60-70%.
Shredded scrap offers from the US and UK/Europe were in the range of $412-418/tonne (t) CFR Nhava Sheva. Meanwhile, HMS (80:20) offers from the UK/Europe and West Africa were reported at $395-400/t CFR.
Pakistan: Pakistani buyers showed little interest in imported scrap due to volatility in the domestic steel market. A few major steel mills closed rebar sales from 28-30 May due to a tight supply of raw materials and are considering a hike of PKR 5,000/t in grade 60 rebar prices.
Shredded scrap offers from the UK/Europe were reported in the range of $420-425/t CFR Qasim.
Bangladesh: Bangladeshi buyers showed moderate interest today, with shredded scrap offers from the UK/Europe at $420-425/t CFR Chattogram and $400-405/t CFR for HMS (80:20) scraps. The domestic steel market continued to remain slow due to adverse conditions and low demand.
Turkiye: Turkish imported ferrous scrap prices from US suppliers increased by $2/t. A US supplier sold to an Aegean mill at $380/t for HMS (80:20) and $400/t for shredded and bonus. Three EU suppliers sold bulk HMS (80:20) at $370/t, $372.5/t, and $374/t CFR to mills in East Marmara, Aegean, and West Marmara, respectively. A Belgium-origin supplier sold 24,000 t of HMS, 6,000 t of shredded, and 10,000 t of PNS at an average of $382/t CFR to a West Marmara mill.
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 d-o-d at $419/t CFR Qasim unchanged d-o-d.
Bangladesh: UK-origin shredded prices were assessed stable at $420/t CFR Chattogram.
Turkiye: US-origin HMS (80:20) bulk prices rose by $1/t to $380/t CFR Turkiye.
Outlook
Imported ferrous scrap offers are expected to remain volatile in the near term. Buyers anticipate a price softening, but sellers remain firm due to a strong domestic market, particularly in Europe, and rumours of rising freight rates due to port congestion in various Southeast Asian countries. Market participants inform that freight costs have increased by 1.5 times in the past four weeks.