South Asia: Imported scrap prices drop on limited trade

South Asia's imported scrap prices witnessed a slight drop today. Pakistani and Indian buyers have booked a few small parcels. Notably, Bangladeshi buyers are less active in the market, despite the price drop. On the other hand, unstable currency exchange rates kept the market cautious. Turkish scrap buyers are less active after a round of deals concluded last week.

India

Indian scrap buyers are active in the market, as the monsoon approaches. Imported scrap markets witnessed a couple of transactions at $430-432/t levels. Notably, offers remained stable due to limited deals. On the other hand, domestic market sentiments remained strong, and the market was stable.

Pakistan

Pakistan's steel producers are under pressure to lower finished steel prices. The domestic market remained unsupported by the imported scrap market. Imported scrap offers more or less remained unchanged for the day. However, transactions slowed down due to steel mills facing problems in opening letters of credits (LCs) with banks.

"Steel producers are selling finished steel under pressure to maintain cash flow, no one is looking at the profit part," said a steelmaker.

Bangladesh

Bangladeshi scrap buyers remained sidelined due to limited steel demand in the domestic market. Limited offers are available in the market due to less acceptance from the buyers' side. The production capacity remained low due to low electricity supply, which kept steel production under pressure.

UK/EU-origin containerised offers are few in the market. Most buyers are showing interest in materials other than UK or EU scrap.

Turkiye

After a round of deals concluded last week, Turkiye's steelmakers are out of the imported scrap market, Buyers are observing the market situation closely. Negotiations are slow in the market at the beginning of the working day as Turkish producers are mostly focused on the finished steel market.

SteelMint's daily assessment for USA-origin HMS 1&2 (80:20) is at $390/t unchanged d-o-d.

Recent deals

• Around 2,000 t of UK-origin shredded have been booked at $435-440/t CFR Qasim last weekend.
  
  
• Over 3, 000 t of UK/EU shredded have been booked at $430-432/t CFR Mundra recently.
  
  
• Yemen-origin 1,250 t of HMS 1&2 (80:20) have been booked at $420/t CFR West Coast India.
  
  
• Around 1000 t of shredded have been booked at $440/t CFR Nhava Sheva.
  
  
• A parcel of 1000 t of UK origin HMS booked at $415/t on a CFR West Coast India basis.
  
  
• Around 1000 t Singapore-origin PNS has been booked at $445/t CFR West Coast India.
  
  

Price assessments

• European shredded scrap offers into India stood at $435-440/t CFR Nhava Sheva, down by $5/t d-o-d.
  
  
• UK-origin shredded scrap prices into Bangladesh were assessed at $462/t CFR Chattogram, down by $3/t d-o-d.
  
  
• UK-origin shredded scrap prices into Pakistan too, inched down by $3/t and stand at $435-440/t CFR Qasim.