South Asia: Ferrous scrap prices continue to fluctuate, few deals closed

The South Asian ferrous scrap market turned slow today on fluctuation in prices and political turmoil in major markets. India saw some positive corrections in terms of prices but trades are yet to pick up. Pakistan was unstable due to ongoing political disturbances. Nevertheless, some deals were heard to have been concluded yesterday late at night at prices higher than the previous offers. Bangladesh's market saw mixed sentiments. The country struck some deals with Australia in HMS (80:20) yesterday. Offers remained unchanged for HMS(80:20). European-origin scrap and shredded were available at same offers, SteelMint noted.

India

India failed to strike any deals today. Shredded scrap offers rebounded as sellers pitched at around $436-440/t. They have anticipated better demand from end-users in the upcoming days. Also for other grades prices saw minor positive corrections.

Price fluctuations are not letting buyers conclude any deals. Participants expect some positive corrections in prices, and are thus holding back amid lack of clear direction. This week a nominal volume was booked at Nhava Sheva and Chennai ports.

"We can consider a fluctuation of more or less $5/t in terms of offers as the market is quite volatile at this moment," an Indian trader informed while speaking exclusively to SteelMint.

Pakistan

Pakistan's ferrous scrap market came to a standstill amid unprecedented violence, protests, and roadblocks. Moreover, the opening of letters of credit (LC) for large cargo bookings remained a concern.

"The market has come to a standstill. In fact, we are facing transport issues. As a result, delivery is pending since last week. To make matters worse, transport charges have increased dragging sales down. We don't know how to survive," said an official representing a major Pakistani mill.

Bangladesh

In Bangladesh, fluctuations in prices are not letting buyers conclude any deals. Market participants believe that some positive corrections in prices may change things for the better. At this juncture, they are holding back amid uncertainty but are hopeful that the upcoming budget for financial year 2023 (FY23) would be more supportive of the steel industry.

Bangladesh's ferrous scrap market saw mixed sentiments, with some deals happening from Australia in HMS (80:20) grade yesterday.

Offers remained unchanged for HMS (80:20) of European-origin and shredded scrap.

Turkiye

Turkiye's domestic scrap prices are moving in different directions amid the current market uncertainty. Steelmakers continued to revise their purchase prices for local scrap.

Some producers have increased their prices. But trade activities have improved in the local market this week.

SteelMint's daily assessment for HMS 1&2 (80:20) from the US stood at $375/t CFR Turkiye, inching up d-o-d. However, prices edged down by $20/t w-o-w.

Recent deals

Around 1,000 t of HMS(80:20) were booked at $405/t recently, CFR Chattogram.

A parcel of 1,000 t of shredded was booked yesterday late night at $440/t on CFR Qasim basis.

Price assessments

Europe-origin shredded scrap offers into India stood at $433/t CFR Nhava Sheva, up $2/t d-o-d.

UK-origin shredded scrap prices into Bangladesh stood at $450/t CFR Chattogram, unmoved d-o-d.

UK-origin shredded scrap prices in Pakistan stood at $428/t CFR Qasim, down $2/t from yesterday.