The South Asian ferrous scrap market experienced a downward trend d-o-d. Indian buyers refrained from active participation due to price disparities. Pakistani buyers slowed down their purchases in light of the upcoming elections. In contrast, buying activities in Bangladesh showed improvement, driven by enhanced production and sales in the domestic steel market and smoother approvals of LC.
While shredded scrap offers remained unchanged in India, they decreased by $1/tonne (t) in Pakistan and $13/t in Bangladesh. Additionally, bulk HMS (80:20) offers from the US to Turkiye also saw a marginal decline of $1/t d-o-d.
Market overview
India: In India, the appetite for imported scrap stayed subdued, with buyers hesitating to make purchases due to unfavourable pricing conditions. Indicatives and offers for shredded scrap from Europe were reported at $415-425/t CFR Nhava Sheva, while HMS (80:20) was quoted at $395-405/t CFR for major ports across India.
Meanwhile, bids for shredded scrap dipped below $400-405/t, and for HMS, buyers sought to negotiate prices in the range of $385-390/t CFR.
Pakistan: In Pakistan, market activities have decelerated in anticipation of the upcoming elections on 8 February. Buyers are adopting a wait-and-see approach, expecting a return to normalcy post-elections. Indicative offers for shredded scrap from Europe were evaluated at $435-440/t CFR Qasim. Simultaneously, HMS 1/PNS grade scraps from the Middle East were priced at $425-430/t CFR.
An official from a steel mill remarked, “The market is moving at a sluggish pace due to the forthcoming elections and other associated activities during the upcoming week.”
Bangladesh: The demand for imported scrap in Bangladesh has witnessed an uptick, attributed to the facilitation of LC approvals and an improvement in production and sales within the domestic steel market. Shredded scrap offers from Europe were evaluated at $430-435/t CFR Chattogram, while HMS (80:20) were reported at $410-415/t CFR.
According to a trader, “Bookings were subdued in December due to election-related factors and issues with LC openings. Now that the elections have concluded and LC approvals have eased, coupled with steel mills resuming normal production after a reduction in December, a noticeable increase in fresh bookings is evident.”
Offers for Japanese H2 scraps have been reported at $430/t, but buyers are showing reluctance due to the comparatively higher prices compared to the US and other markets.
A recent deal involved the conclusion of a mixed material transaction for 2,500-3,000 t from Europe, including shredded and HMS, at $418/t CFR Chattogram. Additionally, a US-based recycler sold two bulk cargoes totalling 30,000 t of HMS and shredded scrap to a Bangladeshi mill, although detailed information could not be verified at the time of publishing.
Furthermore, it was reported that a Bangladeshi mill booked bulk HMS (80:20) and PNS scrap from Australia at approximately $414/t and $424/t CFR levels.
A buyer shared, “We have recently secured an 8,000-t shipment of mixed scrap from Australia, Poland, and Chile. With improved market sentiments and no shortage of scrap, we anticipate a slight correction in offers.”
Turkiye: Imported scrap prices in Turkiye saw a slight decrease of $1/t after recent deals were finalised at the same levels. These transactions reinforced the market’s anticipation of price stability in the near term, as sellers had successfully resisted persistent pressure from mills in recent weeks.
A Mediterranean region-based mill secured US-origin cargo, including HMS (80:20), at $422/t CFR Turkiye. Similarly, a West Marmara-based mill purchased a US-origin cargo of HMS (80:20) scrap at $421/t CFR Turkiye.
Recent deals
- Around 5,000 t of HMS (80:20) scraps were booked from New Zealand at $411/t CFR Chattogram.
- Approximately 5,000 t of HMS (80:20) were procured from Australia at $412/t CFR Chattogram.
- A parcel of 1,000 t of shredded scraps were sourced from Australia at $432/t CFR Chattogram.
Price assessments
India: UK-origin shredded scrap indicatives were assessed stable at $415/t CFR Nhava Sheva.
Pakistan: UK-origin shredded scrap indicatives were assessed at $438/t CFR Qasim, down by $1/t d-o-d.
Bangladesh: UK-origin shredded scrap prices were assessed at $430/t CFR Chattogram, down by $13/t d-o-d.
Turkiye: US-origin HMS (80:20) bulk prices were assessed at $421/t CFR Turkiye, down by $1/t d-o-d.
Outlook
Imported scrap offers are expected to maintain a steady range in India and Pakistan due to a lack of active buying interest. Conversely, in Bangladesh, the market is likely to see better activity driven by improved sentiments.
