The South Asian ferrous scrap market remained mostly stable, with a slight increase in demand for imported scrap in India. Indian buyers turned to imported scrap as domestic prices continued to rise amid shortages. However, no significant activities were reported in Pakistan and Bangladesh.
Shredded scrap offers remained steady in India, Pakistan, and Bangladesh. Turkish bulk HMS (80:20) scrap offers from the US saw a decrease of $5/t d-o-d.
Overview
The imported scrap market in India displayed a minor upturn due to a shortage of scrap in the domestic market. Market observers noted that imported scrap prices are approaching domestic levels, and if domestic prices continued to rise, buyers may increasingly opt for imported scrap. Indicative offers for shredded scrap from the US and Europe ranged between $415-425/t CFR, while HMS (80:20) offers were around $385-395/t CFR.
In Pakistan and Bangladesh, market activities have slowed down due to Ramadan and the approaching Eid. Indicative offers for shredded scrap from the UK/Europe to Pakistan were reported at $425-428/t CFR, but no significant bids were made today as many buyers are already in a holiday mood. Meanwhile, in Bangladesh, offers for imported shredded scrap from the UK/Europe were around $420/t CFR, while HMS (80:20) was offered at $400-405/t CFR.
Turkish deep sea imported ferrous scrap prices dipped despite steady domestic settlement expectations for April. Offers for HMS (80:20) stood at $384/t CFR, down by $5/t from the previous day, with a US-origin deal confirmed at the same price. Although market sources saw potential for similar deals, pricing from the Baltic region remained uncertain. The lower US deal contrasted with expectations of stable April settlements, driven by balanced supply and demand and rising hot-rolled coil prices. European recyclers expressed concerns over low Turkish prices, citing high collection costs. Meanwhile, a Romanian shortsea deal to Turkiye was recorded at $369/t CFR.
Price assessments
India: UK-origin shredded scrap indicatives were assessed unchanged at $420/t CFR Nhava Sheva, d-o-d.
Pakistan: UK-origin shredded scrap indicatives were assessed stable d-o-d at $425/t CFR Qasim.
Bangladesh: UK-origin shredded scrap prices were assessed flat at $420/t CFR Chattogram, d-o-d.
Turkiye: US-origin HMS (80:20) bulk prices were assessed at $384/t CFR Turkiye, down by $5/t.
Outlook
Imported ferrous scrap offers are expected to fluctuate due to uncertainty in various markets. Indian buyers might increasingly consider imported scrap if domestic prices keep rising. For example, in Mandi Gobindgarh, HMS (80:20) scrap prices rose from approximately INR 36,000/t on 1 April to around INR 39,000/t currently, reflecting domestic shortages. Meanwhile, market activities in Pakistan and Bangladesh may continue to be sluggish due to the observance of Eid.
