South Asia: Imported ferrous scrap prices witness mixed trends d-o-d

South Asian ferrous scrap offers displayed mixed trends today. In India, demand for imported scrap has decreased due to sluggish finished steel sales, mismatched bids and offers, and a preference for more economical raw materials like sponge iron. Pakistani buyers stayed mostly inactive, still under the influence of the recent Eid celebrations and new electricity charges imposed by the National Electric Power Regulatory Authority (NEPRA), factors which have further dampened market sentiments. In Bangladesh, demand was similarly low, affected by the Eid holidays and issues with opening Letters of Credit (LCs). Meanwhile, the Turkish market remained stable with potential movements anticipated post-Eid.

Shredded scrap offers remained unchanged in India, while edging up by $2/tonne (t) in Pakistan and Bangladesh. US bulk HMS (80:20) offers remained unchanged d-o-d.

Overview

India: In India, demand for imported scrap has declined due to weak finished steel sales, bid-offer mismatches, and a shift towards more cost-effective raw materials like sponge iron. US and UK/European shredded scrap offers were priced at $414-417/t CFR Nhava Sheva, while HMS (80:20) offers ranged from $390-395/t CFR from UK/Europe and West Africa.

Around 1,000 of shredded scrap was booked from US at around $414/t CFR west coast India.

Pakistan: Pakistani buyers have remained on the sidelines due to the recent Eid holidays, with many still not returning to the market. Indicative offers for shredded scrap from the UK and Europe were assessed at $420-425/t CFR Qasim.

Additionally, a significant development this week saw Pakistan's NEPRA imposing fixed charges of PKR 200-1,000 per month on domestic consumers and PKR 1,500-2,000 per month on industrial consumers starting 1 July, further dampening market sentiments.

Bangladesh: Demand for imported scrap in Bangladesh remained dull owing to Eid festivities coupled with challenges in opening LCs. Indicative offers for UK/Europe-origin shredded scrap were heard at $423-430/t CFR Chattogram, while HMS (80:20) offers stood at $400-405/t CFR.

Market participants observed, "The market is not primarily active post-Eid. However, there are inquiries but at prices lower by $5-8/t from the current levels. LC opening issues emerged for small buyers due to the weaker currency exchange as of now."

Turkiye: Turkish imported scrap prices remained stable, with potential movement expected post-Eid. Discussions and possible bookings for July shipments might resume, with regular scrap business anticipated to return by end-June. The tight supply of scrap, driven by low collections, domestic demand, and Egyptian demand, continued to support prices. The market is currently quiet, with Turkish mills likely to resume bookings next week. Despite increased freights pushing up CFR Turkiye levels, scrap price hikes are not being supported by the rebar market, which remains stable at about $580/t FOB.

Price assessments

India: UK-origin shredded scrap indicatives were assessed at $417/t CFR Nhava Sheva, unchanged d-o-d.

Pakistan: UK-origin shredded indicatives were assessed at $423/t CFR Qasim, up by $2/t d-o-d.

Bangladesh: UK-origin shredded prices rose by $2/t to $423/t CFR Chattogram d-o-d.

Turkiye: US-origin HMS (80:20) bulk prices were assessed at $386/t CFR Turkiye, stable d-o-d.