Today, the South Asian ferrous scrap market continued to experience sluggish activity. Indian buyers continued to refrain from booking fresh scraps due to significant price disparities. Pakistani and Bangladeshi buyers were active, with a few deals reported, but the volume remained low due to delays in payments and issues with LC opening.
Shredded scrap offers increased by $1-3/t in India and Bangladesh, while remaining unchanged in Pakistan. US bulk HMS (80:20) offers decreased by $2/t.
Market overview
India: In India, market activities remained limited as buyers continued to prioritize domestic scrap procurement over imports due to significant price disparities. Indicative offers for shredded scrap from Europe were evaluated at $415-420/t CFR Nhava Sheva, while HMS (80:20) were assessed at $390-395/t CFR.
According to a trader, “The Indian market remains subdued for new bookings, with offers from Europe and the US unable to match the pricing competitiveness seen in the Turkish market ($410-415/t) and Pakistani offers ($440-445) for container shipments. Indian mills are hesitant to exceed $405-410 for shredded scrap.”
Another trader commented, “Finding a new inquiry is rare, especially given the lack of support in the steel market.”
Pakistan: Today, the demand for imported scrap in Pakistan was observed to be moderate. Indicative offers for shredded scrap from Europe were evaluated at $440-445/t CFR Qasim. Meanwhile, shredded scrap offers from the Middle East ranged from $442-445/t CFR, and for HMS, it stood at approximately $410-415/t CFR.
According to an official from a steel mill, “The market is very sluggish both locally and internationally. Additionally, there is a shortage of payments as well. Imported scrap offers varied in the range of $440-445/t depending on the yard and origin.”
In the domestic market, local scrap prices were reported at PKR 173,000-180,000/t ($625-650/t) ex Punjab, while rebars were priced at PKR 255,000-260,000/t ($921-939/t) and billets at PKR 230,000/t ($831/t) ex.
Bangladesh: Today in Bangladesh, the demand for imported scrap was slow, attributed to delays in LC approvals and tardy payments from buyers. Indicative offers for shredded scrap from Europe were assessed at $435-440/t CFR Chattogram, with HMS (80:20) priced at $410-415/t CFR.
Bulk offers from Australia hovered around $420/t CFR for HMS (80:20) and approximately $430/t CFR for shredded scrap.
A trader noted, “LC openings are sluggish, taking at least 40 days. We expect improvement from June onwards. Only major producers can manage payments within 5 working days; others are slower.”
Turkiye: The prices for Turkish imports of ferrous scrap have seen a slight decline of approximately $2/t after recent transactions. Three deals have been reported over the past 2-3 days, outlined as follows:
- A West-Marmara region-based mill booked HMS (80:20) cargo at $414/t CFR from the USA.
- The same mill also booked Poland (Baltic origin) cargo at $409.5/t, comprising 25,000 t of HMS (80:20) scrap.
- An Aegean region-based mill booked a UK-origin bulk HMS (80:20) cargo at $410/t on a CFR basis.
Recent deals
- Around 1,000 t of HMS (80:20) scraps were sourced from Australia at $412/t CFR Chattogram.
- A parcel of 1,500 t of NTP scraps were booked from Thailand at $440/t CFR Chattogram.
- Approximately 500 t of HMS (80:20) were booked from Australia at $383/t CFR LCB.
- About 1,000 t of shredded scraps were booked from Australia at $403/t CFR LCB.
- A small parcel of 250 t of LMS scraps were sourced from Brazil at $385/t CFR Qasim.
- Approximately 250-t of busheling scraps were purchased from Brazil at $445/t CFR Qasim.
Price assessments
India: UK-origin shredded scrap indicatives were assessed at $417/t CFR Nhava Sheva, up by $1/t compared to last closing on Friday.
Pakistan: UK-origin shredded scrap indicatives were assessed unchanged at $440/t CFR Qasim.
Bangladesh: UK-origin shredded scrap prices were assessed at $435/t CFR Chattogram, up by $3/t.
Turkiye: US-origin HMS (80:20) bulk prices were assessed at $413/t CFR Turkiye, down by $2/t compared to last closing on Saturday.
Outlook
In the major South Asian market, imported ferrous scrap offers are expected to remain volatile due to prevailing market sentiments. Indian buyers are expected to resist until offers reach their desired levels of $400-410/t CFR. Pakistani buyers are anticipated to remain active due to shortages in the domestic market, although the pace may be slow due to delayed payments stemming from recent elections.
