The South Asian ferrous scrap market saw a slight uptick in terms of prices, while Indian buyers remained majorly sluggish with dull demand and bid offer disparities. Pakistan remained largely silent due to the ongoing election in the country. Bangladeshi buyers were relatively stable in terms of new inquiries and negotiations from a few mill sides.
In India and Bangladesh, offers for shredded scrap rose by $1-3/tonne (t), while in Pakistan, the increase was $1/t. Additionally, US bulk HMS (80:20) offers to Turkiye saw a d-o-d increase of $1/t.
Market overview
India: In India, indicative prices for shredded scrap from Europe stood at $410-415/t CFR Nhava Sheva, with HMS (80:20) priced at $390-398/t CFR. In Chennai, shredded scrap was quoted at $405-410/t CFR, and HMS (80:20) at $385-395/t CFR.
Market participants observe a notable price disparity between domestic and imported scrap. For example, recent offers for HMS from the UK (arrival cargo) at $375/t CFR Mundra have attracted minimal interest from buyers. Domestic scrap is presently offered at a discount of $15-20/t compared to imported scrap.
Pakistan: Market activities in Pakistan remained majorly absent amid the ongoing election today. Indicatives for shredded scrap from Europe were noted at $440-442/t CFR Qasim.
An official at a steel mill remarked, “India is witnessing an ongoing deceleration, while Pakistan is currently subdued due to the elections. The market is inactive today in light of the elections, and we expect a stable government for the upcoming five years. We hold optimism that following the elections, the economy will begin an upward ascent.”
Bangladesh: In Bangladesh, purchasing activities remain largely disciplined, with offers for shredded scrap from Europe hovering around $435-440/t CFR Chattogram and HMS (80:20) at $415-418/t CFR. Bulk offers from the US were heard at $430-435/t on a CFR Chattogram basis.
A mill representative noted, “Finished goods range from BDT 89,000-91,000/t exw Dhaka and semi-finished and semi-finished steel at BDT 77,000/t across regions.“
Turkiye: Turkish deep-sea import ferrous scrap prices edged up slightly with fresh deals from Europe and the US. Sellers resisted further drops due to limited availability in Europe and steady domestic HMS prices in the US. Indicative values for US/Baltic-origin HMS (80:20) ranged between $419-$422/t CFR, with most around $420/t CFR. An EU-origin deal was reportedly booked at $418/t CFR. Sellers were hesitant to go below $420-$425/t CFR, while bids for US/Baltic-origin HMS (80:20) were at $415/t CFR. Domestic HMS prices in the US remained stable.
Recent deals
Around 1,200 t CR of busheling scraps were booked on a sight LC basis at $440/t CFR East Coast India.
Price assessments
India: UK-origin shredded scrap indicatives were assessed at $415/t CFR Nhava Sheva, up by $3/t d-o-d.
Pakistan: UK-origin shredded scrap indicatives were assessed at $442/t CFR Qasim, up by $1/t d-o-d.
Bangladesh: UK-origin shredded scrap prices were assessed at $437/t CFR Chattogram, up by $3/t d-o-d.
Turkiye: US-origin HMS (80:20) bulk prices were assessed at $420/t CFR Turkiye, up by $1/t d-o-d.
Outlook
The imported scrap market is expected to face a sluggish outlook amid bearish demand from India and Pakistan, while Turkish mills may encounter challenges in selling finished steel products. In contrast, Bangladesh is expected to sustain active participation in the near term.
