South Asia: Indian buyers continue to show active interest in imported scrap
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The South Asian ferrous scrap market remained largely stable with minor adjustments in offers today, with Indian buyers continuing to book according to their requirements, indicating a gradual improvement in demand. However, Pakistan and Bangladesh saw very limited activity due to subdued conditions in their steel sectors and adverse weather conditions. In terms of pricing, shredded scrap offers decreased by $1/t in India. Meanwhile, offers increased by $1/t in Pakistan and remained unchanged in Bangladesh. Additionally, US bulk HMS (80:20) offers to Turkiye decreased by $1/t d-o-d.
Overview
India: In India, the demand for imported scrap has maintained a moderate pace, with buyers gradually moving towards securing these materials. Shredded scrap from the US and Europe is being quoted at around $420-428/t CFR, while HMS (80:20) from West Africa and Europe is priced at $400-405/t CFR.
A spokesperson from a steel mill remarked, "We've initiated our regular procurement activities, finding offers for imported scrap quite favourable, particularly from non-European sources. Our production levels are steady, with scrap inventories on the lower side, aligning well with our orders for finished steel."
Recent bulk offers from the US for HMS (80:20) and shredded stand at $410-412/t and $430-432/t CFR Kandla, respectively.
Pakistan: In Pakistan, market activities persisted at a sluggish pace, reflecting the subdued finished steel sector. Offers of shredded scrap from the UK/Europe ranged between $425-432/t CFR Qasim, while those from the UAE stood at $440-445/t CFR. Meanwhile, HMS (80:20) offers from the UAE were observed at $405-410/t CFR.
Bangladesh: Bangladeshi buyers adopted a wait-and-watch approach, engaging in negotiations for several bulk deals. Furthermore, sluggish downstream demand persisted due to adverse hot weather conditions. Indicative offers for shredded scrap from the UK/Europe hovered around $420-425/t CFR, with HMS (80:20) priced at $400-405/t CFR.
Turkiye: Turkish deep sea imported scrap prices remained stable around $385/t CFR, supported by recent bookings for HMS (80:20). Market players saw little change, with prices holding below $390/t CFR. Despite expectations of minimal movement, some mills hinted at possible minor price increases. Demand from Turkish mills persisted for May and June shipments.
Price assessments
India: UK-origin shredded scrap indicatives were assessed at $425/t CFR Nhava Sheva, down by $1/t d-o-d.
Pakistan: UK-origin shredded indicatives were assessed at $428/t CFR Qasim, up by $1/t d-o-d.
Bangladesh: UK-origin shredded prices were assessed unchanged at $422/t CFR Chattogram, d-o-d.
Turkiye: US-origin HMS (80:20) bulk prices were assessed at $386/t CFR Turkiye, down by $1/t d-o-d.
Outlook
In the near-term, imported scrap offers are expected to exhibit volatility. India and Turkiye are actively pursuing imported scrap bookings to replenish their stocks for the upcoming production cycle. Conversely, Pakistan and Bangladesh markets are anticipated to maintain a sluggish pace, reflecting subdued market sentiments.