Today, the South Asian ferrous scrap market displayed a mixed trend. The Indian market stayed inactive in imports due to pricing impracticality. In Pakistan, the market slowed down amid upcoming elections. Conversely, the Bangladeshi market experienced active buying, driven by improved market sentiments and eased Letters of Credit (LC) approvals.
Shredded scrap offers remained stable in India, decreased by $1/t in Pakistan, and increased by $1/t in Bangladesh. US bulk HMS (80:20) offers rose by $2/t for Turkiye today.
Market overview
India: The imported scrap market in India experienced minimal activity due to the unfeasibility of prevailing prices. Indicative quotes for shredded scrap from Europe persisted in the range of $410-415/t CFR Nhava Sheva, while HMS (80:20) was priced at $390-395/t CFR.
In the Southern region, offers for shredded scrap were reported around $425-430/t CFR Chennai, while HMS 80:20 was assessed at $405-410/t CFR.
However, buying interest remained subdued, with market sources indicating bids at approximately $400-405/t CFR for shredded scrap and $390/t for HMS.
As per information from a trading source, “The market showed no signs of activity, and there were no updates on any new deals.”
Pakistan: In Pakistan, demand for imported scrap has decelerated with the approach of next week’s elections. Buyers are currently in a wait-and-see mode, expecting increased activities after the elections. Shredded scrap offers from Europe were appraised at $435-440/t CFR Qasim. Meanwhile, offers from the Middle East for shredded scrap were at $455-460/t CFR, and for HMS, they stood at $410-415/t CFR.
Bangladesh: In Bangladesh, there was notable interest today in imported scrap, spurred by a relaxation in the approval of LCs by banks. Indicative offers for shredded scrap from Europe were reported at $440-445/t CFR Chattogram, with HMS (80:20) priced at $415-420/t CFR.
According to a trader source, “Buyers are evaluating the tradeable value for shredded scrap at $440/t CFR.”
Turkiye: Imported scrap prices in Turkiye experienced a $2/t increase following a recent deal and as buyers aim to restock for March shipments. Indicative tradeable values for US/Baltic-origin HMS (80:20) were observed at approximately $422/t CFR.
A representative from a steel mill commented, “Turkish mills are currently contending with subdued rebar demand, but the imperative to secure March shipments remains. Although most mills are aiming for $410/t CFR for HMS (80:20), the difficulties encountered by sellers in scrap collection make this goal unfeasible.”
Recent deals
- About 1,000 t of PNS scraps were booked from Brazil at $440/t CFR Chattogram.
- Approximately 1,000 t of sheared HMS was brought from Chile at $416/t CFR Chattogram.
- Around 1,000 t of PNS scraps were procured from Hong Kong at $445/t CFR Chattogram.
- A parcel of 1,000-t HMS-bundles was procured from Brazil at $394/t CFR Chattogram.
- Around 1,000 t of HMS (90:10) scraps were booked from Australia $418/t on a CFR basis.
- About 1,500 t of shredded scraps were booked from UK at $440/t CFR Chattogram.
- A parcel of 1,000-t PNS scraps was booked from Singapore at $445/t CFR Chattogram.
- Approximately 1,200 t of CR-busheling scraps were booked from Germany at $415/t CFR West Coast India.
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 $439/t CFR Qasim, down by $1/t d-o-d.
Bangladesh: UK-origin shredded scrap prices were assessed at $443/t CFR Chattogram, up by $1/t d-o-d.
Turkiye: US-origin HMS (80:20) bulk prices were assessed at $422/t CFR Turkiye, up by $2/t d-o-d.
Outlook
Imported scrap offers are poised for potential fluctuations as sellers hold a steadfast position, despite some apprehension among buyers, particularly concerning prevailing price levels, especially in the context of India. The Pakistani market is anticipated to move at a slower pace due to the upcoming elections next week. Conversely, Bangladesh might see an uptick in scrap bookings due to improved ease in LC approvals.
