Today, South Asian ferrous scrap prices displayed a mixed trend. Indian buyers stayed on the sidelines due to price disparities and the availability of cost-effective materials domestically. In Pakistan, buying interest slowed down ahead of the elections on 8 February. However, in Bangladesh, buyers remained active due to better demand in the domestic steel market and easier approvals of LCs.
Shredded scrap offers remained unchanged in Bangladesh, edging down by $1/t in India, and rose by $1/t in Pakistan. US bulk HMS (80:20) offers to Turkiye also remained flat d-o-d.
Market overview
India: In India, the demand for imported scrap has remained sluggish due to unfavourable price conditions. Indicative offers for shredded scrap from Europe were reported at approximately $415-420/t CFR Nhava Sheva, while buyers are unwilling to pay beyond $400-405/t CFR. Meanwhile, offers for HMS (80:20) scrap from Europe were noted at $395-400/t CFR.
A representative from a trading company pointed out: “While Pakistan and Bangladesh are actively purchasing scrap, India has stayed on the sidelines for various reasons. These include India’s preference for domestic metallics, which offer better returns compared to imports, and the higher costs associated with imported ferrous scrap.”
Another trader, operating in northern India, said, “Imports are currently not financially viable in India, so we have refrained from seeking offers. In our region, buyers are only willing to pay up to $395/t CFR for shredded scrap.”
Pakistan: In Pakistan, market activities have slowed down, it being the election week. Indicative offers for shredded scrap from Europe were at $435-445/t CFR Qasim, while offers from the Middle East were at $450-455/t. Buyers expressed interest in Middle East material at around $440-450/t CFR.
An official from a steel mill remarked, “Rebar prices also remained stable this week, with nominal sales in finished steel, it being an election week. No major activities are expected so far.”
Another steel mill official commented, “Buying is slow because of the elections. Yesterday was off, and Thursday is election day, so we do not expect major activities in the next two days. If a new government comes in, the market may see some positivity.”
In the domestic market, local scrap prices were reported at PKR 164,000-168,000/t ($587-601/t) exw. Rebars were priced at PKR 264,000-268,000/t ($944-958/t), and billets were at PKR 220,000-225,000/t ($787-805/t), both exw.
Bangladesh: In Bangladesh, the demand for imported scrap has picked up, with some deals reported. This increase is attributed to improved domestic steel demand and easier approvals of LCs. Indicative offers for shredded scrap from Europe were assessed at $430-435/t CFR Chattogram, while HMS (80:20) was reported at $410-415/t CFR.
Offers for PNS scraps from Malaysia were assessed at $435/t CFR, LMS at $395/t CFR, and HMS light pressed at $410/t CFR. Offers from the Philippines for HMS light press were heard at $405/t CFR, LMS scraps at $390/t, and PNS at $440/t CFR. Australian-origin PNS scraps were heard at $428/t CFR.
In the domestic market, billet prices were assessed at BDT 77,000/t ($701/t), while rebars ranged between BDT 87,000-93,000/t ($792-847/t).
Turkiye: Turkish imported scrap prices held steady, with no new deals reported. US/Baltic-origin HMS (80:20) traded at around $422/t CFR. The lira’s depreciation prompted Turkish mills to raise lira-denominated scrap purchase prices: Colakoglu and Asil Celik increased DKP-grade scrap purchase prices to TRY 12,805/t and TRY 13,040/t, respectively, while Kroman raised it to TRY 12,500/t.
The lira’s decline followed the resignation of Turkiye’s central bank governor, Hafize Gaye Erkan. and appointment of Deputy governor Fatih Karahan, as the new governor, who pledged to maintain tight monetary policies until reaching the bank’s inflation target in 2024.
Recent deals
- Approximately 1,000 t of HMS-PNS mix scraps were booked from the Middle East at $440/t CFR Chattogram.
- About 500-t of PNS scraps were booked from the Maldives at $430/t CFR Chattogram.
- A parcel of 500-t Hong Kong-origin PNS scraps were sourced at $455/t CFR Chattogram.
- About 1,500 t of HMS-PNS mix scraps were procured from Chile at $438/t CFR Chattogram.
- About 500 t of LMS bundles were booked from the UK at $375/t CFR Qasim.
- Around 1,000 t of shredded scrap were sourced from Europe at $442/t CFR Qasim.
Price assessments
India: UK-origin shredded scrap indicatives were assessed at $416/t CFR Nhava Sheva, down by $1/t d-o-d.
Pakistan: UK-origin shredded scrap indicatives were assessed at $442/t CFR Qasim, up by $2/t d-o-d.
Bangladesh: UK-origin shredded scrap prices were assessed stable d-o-d at $433/t CFR Chattogram.
Turkiye: US-origin HMS (80:20) bulk prices were assessed unchanged at $422/t CFR Turkiye.
Outlook
Imported scrap offers are expected to remain relatively stable in the near term, particularly in India and Pakistan. Indian buyers are hesitant to book at the current elevated levels, while Pakistan will experience slower market activities due to the upcoming elections. In contrast, Bangladeshi buyers are anticipated to stay active due to improved market sentiments.
