Today, the South Asian ferrous scrap market again exhibited an upward trend. Indian buyers remained inactive in the seaborne market, while Pakistani buyers reduced their purchases, and Bangladeshi buyers faced challenges in opening letters of credit (LCs).
Shredded scrap offers increased by $5/t in India, $3/t in Pakistan, and $1/t in Bangladesh. Additionally, US bulk HMS (80:20) offers saw a slight increase of $4/t d-o-d.
Overview
Indian buyers remained inactive further today due to disparities between bids and offers, compounded by relatively lower domestic scrap prices compared to imported scrap. Indicative offers for shredded scrap from the US and Europe were reported at $410-415/t CFR, while buyers’ bids hovered around $395-405/t CFR. Additionally, offers for HMS (80:20) from the UK/Europe, and West Africa ranged between $375-385/t CFR.
A trader commented, “Demand for imported scrap is weak, with a notable gap of at least $10 between bids and offers. Production levels have seen a slight improvement, but raw material inventory is limited to a maximum of 4 days. The next 15 days are expected to be sluggish, especially with the holiday season. However, buying activity may resume towards the end of April for shipments in May and June.”
In Pakistan, there were no significant changes observed today, as market participants have embraced a festive mood with the onset of Ramadan, leading to a slowdown in buying activities. Indicative offers for shredded scrap from Europe ranged between $410-415/t CFR.
Meanwhile, in Bangladesh, buyers have also reduced their purchasing pace due to delays in LC and the ongoing Ramadan period. Additionally, market participants noted an increase in operational costs for steel mills due to a rise in power and gas prices. Indicative offers for shredded scrap from Europe/UK were reportedly around $410-415/t CFR, while HMS (80:20) was quoted at $395-400/t CFR.
Turkish deep sea imported ferrous scrap prices rose due to increased deal activity, with HMS (80:20) offers at $386/t CFR, up $4/t. Deals included a US-origin sale at $382/t CFR and an EU-origin sale at $381/t CFR. Offers for US/EU-origin HMS (80:20) rose to $387-$390/t CFR and $383/t CFR and above, respectively. Shortsea scrap imports were assessed at $360/t CFR. Expectations vary regarding sustainability, with some anticipating further price increases while others express caution due to moderate steel sales in Turkiye.
Price assessments
India: UK-origin shredded scrap indicatives were assessed at $412/t CFR Nhava Sheva, up by $5/t d-o-d.
Pakistan: UK-origin shredded scrap indicatives were assessed at $416/t CFR Qasim, up by $3/t d-o-d.
Bangladesh: UK-origin shredded scrap prices were assessed at $411/t CFR Chattogram, up by $1/t d-o-d.
Turkiye: US-origin HMS (80:20) bulk prices were assessed at $386/t CFR Turkiye, up by $4/t d-o-d.
Outlook
Imported ferrous scrap offers into South Asia are expected to exhibit volatility in the near term. Notably, the largest scrap importer, Turkiye, is experiencing an uptrend following recent deals, which may influence other markets to follow suit. However, subdued demand could lead buyers to show resistance despite these trends.
