The scrap market shows mixed sentiments; however, most countries have pessimistic behavior. The scrap market of South Asia had a slow trend at the start of the week in response to low demand for finished steel.
India has finalized an agreement at a nominal price fall for containerized shredded ferrous scrap. An Indian mill in Chennai has booked a deep sea cargo of EU-origin HMS 1 (90:10) and shredded at $415/MT CFR for November delivery. India has a production cut. Offer for European-origin shredded with a decline of $3/MT remained at $475/MT in Nhava Sheva.
In Pakistan, prices of UK-origin shredded scrap remained the same as last week at $475 CFR Qasim. Pakistani traders are not active due to floods, hikes in energy prices, and halted production activities by steel mills. Prices of shredded scrap vary in different countries; it was high in Bangladesh than in India and Pakistan but remained static against last week at $500/MT CFR in Chittagong.
HRC demand from Vietnam is low, which caused to decline in exports to India. Vietnam is a big importer of hot rolled sheets from India, with $272.7 million in April 2022 against $243.3 million in 2021. Now low demand from Vietnam is a result of the lockdown and limited production to control the emissions in China. Vietnam used HRC in the production of galvanized steel which exports to China. Indicative prices of HRC (SAE 1006) from India are at $610/MT CFR. India has decreased its productivity to support the prices in the domestic and international markets.
This slowdown in the market is due to certain conditions in different countries, like floods, production cuts, and lockdowns. Limited trade activities in South Asia will soon improve as countries overcome the issues.
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