South Asia: Imported scrap prices steady on limited buying interest

Today, in the South Asian ferrous scrap market, buying interest remained limited. In India, although market activities were anticipated to pick up post-Diwali, this did not materialise as buyers opted to procure from the domestic market due to attractive prices compared to imports. In Pakistan, uncertainty in price trends and issues related to letters of credit (LCs) prompted buyers to stay on the sidelines. Similarly, market activities remained limited in Bangladesh as buyers faced challenges in making payments due to liquidity and LC opening issues.

Shredded scrap offers remained stable in India and Pakistan, while they edged up marginally in Bangladesh compared to the last closing on Friday.

Market overview

India: Today in India, buyers demonstrated lack of interest in booking imported scrap, as local scrap prices were more attractive compared to imported. Offers for shredded scrap from Europe were evaluated at $415-418/t CFR Nhava Sheva, while HMS (80:20) stood at $395-400/t CFR.

A source from a steel mill mentioned, "Although offers are relatively high, buying interest for imported scrap in the domestic market is low. We plan to monitor the market trend over the next couple of days before making any booking decisions, given that we currently have ample scrap stocks."

A southern India-based steel mill has reportedly booked about 9,000 t of NTP scraps from Europe at $420/t CFR Chennai, which is expected to arrive in January 2024.

Pakistan: In Pakistan, market activities have stayed subdued due to buyers experiencing difficulties in opening LCs, coupled with a general lack of clarity in the market regarding prevailing price trends. Shredded scrap offers from Europe were assessed at $416-420/t CFR Qasim. However, no deals were reported at these levels.

According to a trader, "The opening of LCs continued to pose challenges, and the current state of the market is highly uncertain."

Bangladesh: The demand for imported scrap in Bangladesh faced limitations because of ongoing challenges confronted by buyers, including issues related to LCs, a dollar crisis, and liquidity constraints. Consequently, there has been a noticeable decrease in trading activities over the last couple of months. Indicative offers for shredded scrap from Europe were reported at $428-430/t CFR Chattogram, while HMS (80:20) was assessed at $408-410/t CFR levels.

A trader shared that around 10,000-15,000 t of bulk busheling scraps were acquired from Japan at $433/t CFR Bangladesh last week.

Another trader stated, "Bulk bookings have been stagnant for a while. However, a leading steel mill recently received six vessels, out of which only three have been unloaded so far due to port congestion."

Turkiye: The Turkish imported scrap market temporarily halted its upward trend towards the end of last week due to a slowdown in trade activity. However, prices found stability at $385-386/t CFR Turkiye. Target prices from sellers for high grade HMS (80:20) were reportedly in the range of $385-$390/t CFR.

Market sentiments indicated a hesitancy to accept bids below $385/t CFR, particularly from Western Europe, influenced by exchange rate considerations. In the short-sea market, offers were reported at $365-$370/t CFR Turkiye, with no new bookings recorded.

Recent deals

• Approximately 2,000 t of PNS scraps were sourced from Hong Kong at $443/t CFR Chattogram.
  
  
• Around 1,000 t of shredded scrap were booked from the US at $414/t CFR Chattogram.
  
  
• About 1,000 t of HMS (90:10) were secured from Australia at $412/t CFR Chattogram.
  
  
• A parcel of 1,000 t of HMS (80:20) was procured from Chile at $394/t CFR Chattogram.
  
  
• A small parcel of 500 t of NTP scrap was booked from Italy at $425/t CFR Chennai.
  
  

Price assessments

India: UK-origin shredded scrap indicatives were stable $416/t CFR Nhava Sheva today.

Pakistan: UK-origin shredded scrap indicatives remain unchanged at $416/t CFR Qasim today.

Bangladesh: UK-origin shredded scrap were assessed at $430/t CFR Chattogram, up by $2/t against the last closing on Friday.

Turkiye: US-origin HMS (80:20) bulk prices stood stable at $385/t CFR Turkiye today.

Outlook

In the near term, we anticipate continued volatility in imported scrap offers, given the restrained interest of buyers at elevated price levels. A potential stabilising factor could emerge towards the weekend, particularly if Turkish bookings resume to finalise restocking efforts and fulfill December shipments. Despite the temporary slowdown, the overall outlook for the Turkish deep-sea scrap market remains optimistic.