South Asia: Imported ferrous scrap market remains stable even amid low buying interest
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The South Asian ferrous scrap market remained stable across countries today amid lack of buying interest. In India, market movements maintained stability, with offers largely unchanged. Conversely, in Pakistan, subdued buyer activity persisted amid sluggish domestic steel demand. Meanwhile, in Bangladesh, imported scrap demand saw a slowdown, influenced by concerns over freight rates and quality, prompting a cautious stance among buyers.
Overview
India: Market activities in India today saw a steady pace, with offers remaining mostly unchanged. Shredded scrap from the US and UK/Europe held firm at $425-430/t CFR, while HMS (80:20) offers from Europe and West Africa were at $405-410/t CFR.
Pakistan: Pakistani buyers continued to show subdued activity due to sluggish demand in the domestic steel market. Offers for shredded scrap from the UK/Europe were evaluated at $420-425/t CFR Qasim.
A representative from a trading company commented, "The local market is experiencing significant weakness. There is a shortage of material in the local market, and mills are grappling with low steel sales volumes. Imported scrap prices from the UK/Europe are ranging from $420-425/t. The steel sector is facing considerable challenges, with major players barely surviving amid bank loans and hefty electricity bills."
Bangladesh: Imported scrap demand in Bangladesh experienced a slowdown attributed to a lack of buying interest, particularly for European-origin material due to elevated freight rates and quality concerns. Indicative offers for shredded scrap from the UK/Europe were pegged at $420-425/t CFR Chattogram, while HMS (80:20) offers were assessed at $400-405/t CFR Chattogram.
A representative from a trading company remarked, "Although we are receiving offers from suppliers, buyers are not actively bidding and have adopted a wait-and-see approach. Consequently, no deals have been finalised. Moreover, buyers are hesitant to purchase from the UK/Europe due to excessively high freight costs. I believe there have been no trades from the UK recently."
Turkiye: Turkish deep-sea imported scrap prices remained unchanged due to subdued trading activity, reflecting the persistently weak demand for finished steel products. Turkish rebar producers, facing a downturn in demand, sought further discounts from scrap recyclers.
As per suppliers, the bids for European-origin HMS (80:20) had dropped to $375/t CFR as the challenge of matching Turkish bids for scrap due to domestic scrap prices in Western Europe and the recent strengthening of the Euro against the US dollar."
On the other hand, Turkish mills resisted paying $382-383/t CFR for European material and instead looked to US HMS (80:20) at comparable prices.
Price assessments
India: UK-origin shredded scrap indicatives were assessed unchanged d-o-d at $427/t CFR Nhava Sheva.
Pakistan: UK-origin shredded indicatives were assessed flat at $423/t CFR Qasim.
Bangladesh: UK-origin shredded prices were assessed stable d-o-d at $425/t CFR Chattogram.
Turkiye: US-origin HMS (80:20) bulk prices were assessed unchanged at $383/t CFR Turkiye.
Outlook
In the near term, offers for imported ferrous scrap are likely to remain range-bound. This is primarily due to sellers maintaining a firm stance, driven by favourable pricing dynamics in their domestic markets. Conversely, subdued buying interest persists in the major import markets, contributing to a relatively stagnant outlook for ferrous scrap transactions.