South Asia: Imported ferrous scrap market witnesses stable trend d-o-d
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The South Asian ferrous scrap market remained largely stable today. In India, cautious sentiment prevails amidst moderate demand, driven by domestic market volatility. Meanwhile, Pakistani buyers remain disinterested, citing weak demand for finished steel and post-Eid labour shortages. Bangladesh maintains steady demand for imported scrap, with noteworthy developments, including confirmation of the IMF's third loan installment.
Shredded scrap offers edged up by $3/t in India, and $1/t in Bangladesh but remained unchanged in Pakistan. US bulk HMS (80:20) offers to Turkiye remained unchanged d-o-d as well.
Overview
India: In India today, demand for imported scrap remained moderate as buyers opted for a cautious approach due to volatility in the domestic market today. Indicative offers for shredded scrap from the US and Europe were observed in the range of $425-430/t CFR, while buyers' bids hovered around $420-425/CFR.
Offers for HMS (80:20) from Europe and West Africa were assessed at $400-410/t CFR.
Pakistan: Pakistani buyers continued to exhibit a lack of interest in imported scrap, a trend attributed to weak demand for finished steel in the domestic market and labour shortages following Eid. Market observers noted that production levels across various industries remained sluggish, hovering at 40-50%.
Shredded scrap offers originating from the UK/Europe were evaluated at $420-425/CFR Qasim.
Bangladesh: In Bangladesh, demand for imported scrap maintained a moderate level, with offers for shredded from Europe/UK assessed at $420-425/t CFR Chittagong, while HMS (80:20) stood at $400-405/t CFR.
Additionally, the International Monetary Fund (IMF) has confirmed the disbursement of its third loan installment. Top finance ministry officials, following a meeting with the IMF delegation, disclosed that the installment, totaling $681 million, will be released in June. This marks a significant development in the implementation of the IMF's $4.7 billion loan package for Bangladesh.
Turkiye: The Turkish market for imported ferrous scrap stayed mostly steady d-o-d after a recent transaction from the US. A Turkish mill secured approximately 18,000 t of HMS (80:20) scrap at $383/t CFR, followed by a booking of 12,000 t of shredded at around $403/t CFR. Market feedback suggests that US sellers are exhibiting more assertiveness, while European offers have eased to around $378-380/t CFR.
Price assessments
India: UK-origin shredded scrap indicatives were assessed at $427/t CFR Nhava Sheva, up by $3/t d-o-d.
Pakistan: UK-origin shredded indicatives were assessed at $423/t CFR Qasim, stable d-o-d.
Bangladesh: UK-origin shredded prices were assessed at $425/t CFR Chattogram, up by $1/t d-o-d.
Turkiye: US-origin HMS (80:20) bulk prices were assessed unchanged at $383/t CFR Turkiye.