Published on September 24, 2024
The ferrous scrap market in South Asia has been experiencing a period of relative stability, with limited buying activity observed across the region. This trend is largely influenced by various economic and market-specific factors affecting key countries such as Pakistan, India, and Bangladesh.
Pakistan: Sluggish Market and Tight Cash Flows
In Pakistan, buyers have shown a sluggish response this week. The domestic steel market slowdown and tight cash flows due to looming electricity and gas bills have significantly impacted purchasing decisions. As a result, UK-origin shredded scrap prices have held steady at $393 per tonne CFR Qasim, showing no change from the previous close.
India: Low Demand Amid Market Discrepancies
India’s demand for imported scrap has also remained low. This is primarily due to the differences between bids and offers and a slowing steel market. The price for UK-origin shredded scrap has remained unchanged at $389 per tonne CFR Nhava Sheva since the last close on Friday. The cautious approach by Indian buyers reflects the volatile nature of the global scrap market and its uncertainties.
Turkey: Declining Prices Due to Sluggish Demand
The Turkish imported scrap market has seen a further price decline, driven by sluggish demand and an oversupply from European recyclers. US-origin HMS (80:20) bulk prices have edged down by $1 per tonne to $365 per tonne CFR Turkiye, compared to the last closing on Saturday. This decline highlights the challenges faced by the Turkish market in balancing supply and demand.
Bangladesh: Limited Interest and Financial Challenges
In Bangladesh, buyers have demonstrated limited interest in imported scrap. The sluggish demand for steel and the challenges related to opening letters of credit (LCs) have contributed to this trend. Despite these challenges, UK-origin shredded scrap prices have remained stable at $400 per tonne CFR Chattogram, unchanged from the last closing on Friday.
Conclusion
Overall, South Asia’s imported ferrous scrap market is characterized by limited buying activity and steady price offers. The economic and market-specific challenges faced by Pakistan, India, and Bangladesh have significantly shaped this trend. As the market continues to navigate these complexities, it will be interesting to see how these dynamics evolve in the coming weeks. Buyers and sellers must remain vigilant and adaptable to the ever-changing market conditions.
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