Published on 11 June 2024

The ferrous scrap market in South Asia has been experiencing fluctuations due to varying demand and logistical challenges. Here’s a detailed look at the current situation in India, Pakistan, and Bangladesh.

India

In India, the demand for steel has been poor, leading to relatively slow scrap imports. Despite this, offers for shredded scrap of UK origin have slightly increased. The latest assessment places these offers at $420/t CFR Nhava Sheva, which is an increase of $2/t from the previous closure. This indicates a marginal improvement in the market sentiment, although the overall demand remains subdued.

Pakistan

The market for shredded scrap from the UK and Europe has been more active in Pakistan, primarily due to pre-Eid restocking activities. Offers for shredded scrap were assessed at $422-423/t CFR Qasim. The pre-Eid period typically sees increased activity as businesses prepare for the holiday, keeping inquiries active and the market relatively buoyant.

Bangladesh

Bangladesh, on the other hand, has faced significant challenges in the ferrous scrap market. The unavailability of containers and rising freight prices have excluded many customers from participating in the market. As a result, business activity has remained muted. The prices for shredded scrap of UK origin have decreased by $3/t to $422/t CFR Chattogram. This decline reflects the logistical difficulties and the subdued demand in the region.

Conclusion

The ferrous scrap market in South Asia is currently characterized by fluctuating prices and varying demand levels. While India and Pakistan have shown some activity, Bangladesh’s market remains constrained by logistical issues. The coming weeks will be crucial in determining whether these trends continue or if new factors will influence the market dynamics.