South Asia: Buyers Remain Cautious Following Price Hike

Published on Oct 08, 2024

South Asia: Buyers Remain Cautious Following Price Hike

The South Asian scrap metal market has been experiencing a period of uncertainty following recent price hikes. Buyers across the region have adopted a cautious approach, influenced by concerns over future price volatility and market stability.

India:

In India, buyers have taken a wait-and-see stance. The primary concern is the potential for future price fluctuations, which has led to hesitation in making immediate purchases. The estimated price range for shredded scrap from the US, UK, and Europe was $400–405 per ton CFR Nhava Sheva. This cautious behavior reflects the broader market sentiment, where buyers are unsure if the current price levels will hold or decline soon.

Pakistan:

Pakistan’s demand for imported scrap has remained weak. This is largely due to muted steel sales, postponed payments, and ongoing cash flow issues. The financial constraints faced by buyers have significantly impacted their purchasing power. Indicative offers for shredded scrap from the UK and Europe were reported at $405-410 per ton CFR Qasim. The weak demand highlights the Pakistani market’s challenges in navigating the current economic landscape.

Bangladesh:

In Bangladesh, buyers have largely stayed on the sidelines, with no firm offers or deals reported. The indicative offers for shredded scrap from the UK and Europe were $405-410 per ton CFR Chattogram, while HMS (80:20) was offered at $390-395 per ton CFR. The lack of activity suggests that Bangladeshi buyers are also cautious, waiting for more stable market conditions before making significant purchases.

Turkey:

In contrast to the cautious sentiment in South Asia, Turkish deep-sea imported scrap prices have remained largely stable at $385 per ton CFR. This stability follows a bullish week, indicating a more confident market outlook in Turkey than its South Asian counterparts.

Conclusion

The cautious approach buyers adopt in South Asia reflects the broader uncertainty in the global scrap metal market. Concerns over price volatility and economic challenges have led to a wait-and-see attitude, particularly in India, Pakistan, and Bangladesh. As the market navigates these uncertainties, buyers will likely remain cautious, closely monitoring price trends and economic indicators before making significant purchasing decisions.