The South Asian ferrous scrap market exhibited a mixed trend. Indian buyers adopted a wait-and-see approach amidst a rapid increase in domestic scrap offers. Pakistani and Bangladeshi buyers slowed down purchases due to Ramadan and the approaching Eid next week.
In terms of shredded scrap, offers increased by $4/t in India, $1/t in Pakistan, and remained unchanged in Bangladesh. Meanwhile, US bulk HMS (80:20) offers to Turkiye were slightly declined by $1/t d-o-d.
Overview
Today, India‘s imported scrap market exhibited stability as buyers took a cautious approach amidst a sudden surge in domestic scrap prices, opting to observe the price dynamics further. Additionally, feedback from the market suggests that some suppliers refrained from making offers in anticipation of a potential price escalation. Indicative offers for shredded scrap originating from the US and Europe were assessed within the range of $415-425/t CFR, with no transactions reported for the day.
Concurrently, offers for HMS (80:20) from West Africa and Europe stood at $385-395/t CFR.
A representative from a rolling steel mill based in northern India remarked, “There’s a scarcity of scrap in the market leading to price hikes, albeit temporarily. While there’s a slight uptick in demand for imports, sellers are now cautious and not actively offering due to the observed dynamics in the domestic market.” Another official from a steel mill added, “The domestic market has seen a rise of INR 3,000/t, but our sales have declined. We haven’t made any sales in the past week, which appears to be a temporary trend. With elections approaching and strict enforcement of cash flow regulations, the market sentiment seems subdued.”
Meanwhile, in Pakistan, market activities have decelerated due to a sluggish steel market and the ongoing Ramadan. Consequently, many buyers have shifted into a holiday mood with Eid approaching next week. Indicative offers for shredded scrap from Europe were evaluated at $425/t CFR, while those originating from the UAE were approximately $430/t CFR.
Bangladesh experienced a slowdown attributed to Ramadan and the upcoming Eid holidays. Offers for shredded scrap from Europe/UK hovered around $415-420/t CFR, while HMS (80:20) were priced at $400-405/t CFR.
The Turkish imported ferrous scrap market experienced a slight decrease in offers, down by $1/t d-o-d. This adjustment was primarily influenced by steadfast suppliers amid hesitant buyers citing subdued steel sales. Sellers maintained their firm stance due to increased collection costs and reduced margins. Offers for HMS (80:20) from Europe stood at $385/t CFR, while those from the US were priced at $390/t CFR. However, buyers aimed for European cargoes at $380/t and US cargoes at $385/t CFR. A trader noted that Turkish mills still required five to six more cargoes for April shipment, which could potentially be booked prior to the holidays by the end of the week.
Price assessments
India: UK-origin shredded scrap indicatives were assessed at $420/t CFR Nhava Sheva, up by $4/t d-o-d.
Pakistan: UK-origin shredded scrap indicatives were assessed at $425/t CFR Qasim, up by $1/t d-o-d.
Bangladesh: UK-origin shredded scrap prices were assessed stable at $420/t CFR Chattogram, d-o-d.
Turkiye: US-origin HMS (80:20) bulk prices were assessed at $389/t CFR Turkiye, down by $1.
Outlook
Indian buyers are likely to remain cautious amidst rapidly increasing domestic scrap offers, especially with elections looming, tight cash flow, and the implementation of a code of conduct. Pakistani and Bangladeshi buyers are expected to further slow down purchases as Eid approaches next week. Turkish buyers are hoping for a price drop, and if sellers show some flexibility, deals may materialise before the Eid holidays.
