The South Asian ferrous scrap market remained stable d-o-d. In India, amid low buyer confidence and market volatility, caution prevailed before making significant bookings. Meanwhile, in Pakistan and Bangladesh, cautious buyer sentiments mirrored sluggish steel sales and minimal scrap demand.
Shredded scrap offers stayed unchanged d-o-d across India, Pakistan, and Bangladesh. However, bulk HMS (80:20) offers to Turkiye dipped by $2/t following a recent European deal.
Overview
India: In India, demand for imported scrap stayed low because buyers lacked confidence amid fluctuating offers and domestic market volatility. Shredded scrap from the US and Europe was priced around $420-430/t CFR, while HMS (80:20) offers from West Africa and Europe hovered at $390-400/t CFR.
Offers for US-origin bulk shredded scrap were heard at around $415/t CFR levels.
Notably, a primary steel mill has reportedly booked around 4,500 t of shredded scrap from Australia at $420/t CFR Vizag and around 3,000 t of shredded scrap from New Zealand at $415/t CFR Mundra in the previous week.
Pakistan: In Pakistan, buyers are cautious due to sluggish finished steel sales, leading to minimal scrap demand. Shredded scrap from the UK/Europe is offered at $430/t CFR Qasim. A steel mill official commented, “The market is sluggish, with slow finished steel sales. We’re uncertain about the current uptick in import offers, so we’ll adopt a wait-and-see approach until next week before making substantial bookings.”
Bangladesh: Bangladeshi buyers are taking a cautious stance amid a sluggish domestic steel market and no notable progress in the infrastructure sector. Shredded scrap from the UK and Europe was reportedly offered at $428-432/t CFR, while HMS (80:20) stood at $410/t CFR. In the local market, rebar prices hovered around BDT 88,000-89,000/t ex-Dhaka and BDT 94,000-94,500/t ex-Chattogram, with billets heard at BDT 77,500-78,000/t.
Turkiye: A Finland region-based supplier sold bulk cargo on 16 April to an Aegean region-based mill, with 27,000 t mixed scrap comprising 17,000 t of HMS (80:20) at $382/t CFR and 10,000 t of shredded scrap at $399/t CFR Turkiye. As per market insiders, Turkish mills are possibly exploring European sellers offering competitive prices, considering the favourable exchange rate, which made it profitable levels for them.
Price assessments
India: UK-origin shredded scrap indicatives were assessed unchanged at $426/t CFR Nhava Sheva, d-o-d.
Pakistan: UK-origin shredded scrap indicatives were assessed stable d-o-d at $430/t CFR Qasim.
Bangladesh: UK-origin shredded scrap prices were assessed at $428/t CFR Chattogram, unchanged d-o-d.
Turkiye: US-origin HMS (80:20) bulk prices were assessed at $382/t CFR Turkiye, down by $2/t d-o-d.
Outlook
In the near term, imported ferrous scrap offers in the South Asian market may experience volatility due to low demand across markets, coupled with sellers maintaining firm price stances. Indian buyers are expected to make bookings according to their needs, given the fluctuating domestic market and the upcoming elections starting on 19 April. Pakistani and Bangladeshi buyers are anticipated to re-enter the market within the next two to three days, providing better clarity on the situation.