Published on 23 May 2024
The market for imported ferrous scrap in South Asia has seen a noticeable slowdown in recent months.
Market Slowdown
April witnessed a significant deceleration in the market for imported ferrous scrap in South Asia. This slowdown was particularly noticeable when compared to the market activity in March. The primary reason for this downturn is the widening gap between the offers and bids, leading to uncertainty and caution among buyers, especially in India.
Indian Scrap Market
Indian buyers have adopted a “wait and watch” stance on imported scrapbooking due to the substantial difference between offers and bids. Shredded scrap offers from the US and Europe were assessed at $415-420/t CFR Nhava Sheva. However, buyers’ bids were hovering around $410/t CFR. This discrepancy has led to a standoff in the market, with buyers waiting for better pricing conditions.
Pakistani Scrap Market
The high offers have not only affected Indian buyers but have also impacted Pakistani buyers. Despite the availability of reasonably priced scrap on the local market, Pakistani buyers remained disinterested due to the high offers. Offers for shredded scrap from the UK/Europe were assessed at $415-420/t CFR Qasim.
Conclusion
The market for imported ferrous scrap in South Asia is currently in flux. The significant difference between offers and bids has led to a slowdown in market activity. Buyers in India and Pakistan are cautious and waiting for better pricing conditions. As the market navigates through this period of uncertainty, it remains to be seen how these dynamics will shape the future of the ferrous scrap market in South Asia.
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