The South Asian ferrous scrap market saw further downtrend owing to bid-offer gaps, slow domestic steel market and civil unrest. In India, demand remained sluggish due to a widening bid-offer gap, a slowdown in the domestic steel market, and seasonal impacts. In Pakistan, buyers showed moderate interest in imported scrap amid lower rebar sales. Bangladesh’s market was notably slow due to civil unrest, causing significant disruptions in market activities and communication. Meanwhile, Turkish deep-sea imported ferrous scrap prices held steady at $390/t CFR for HMS (80:20), despite increased pressure from buyers and declining iron ore prices.
Overview
India: In India, demand for imported scrap remained sluggish due to a widening bid-offer gap, a slowdown in the domestic steel market, and seasonal impacts. Shredded scrap offers were assessed at $410-415/t CFR Nhava Sheva, but there were no takers at this price. HMS (80:20) offers from West Africa and the UK/Europe ranged between $380-390/t CFR.
A representative from a trading company commented, “The market is currently poor with no significant buying activity. Any available offers are not at workable prices.”
Pakistan: Pakistani buyers showed moderate interest in imported scrap owing to lower rebar sales amidst squeezed margins and delayed payments. Indicative offers for shredded scrap from the UK/Europe were assessed at $425-430/t CFR Qasim.
Bangladesh: Bangladesh’s imported scrap market was slow due to civil unrest, causing a significant slowdown in market activities. Market participants noted that around two bulk US cargoes were booked a few days prior, but exact information couldn’t be verified due to network jammers and connectivity issues.
A representative from a trading company said, “Many areas are under curfew, with military patrols in effect. Internet services are down, resulting in a lack of communication and no new inquiries.”
Turkiye: Turkish deep-sea imported ferrous scrap prices held steady at $390/t CFR for HMS (80:20). Sellers maintained firm prices despite increasing pressure from buyers, driven by attractive billet offers and declining iron ore prices. Indicative tradable values for US/Baltic-origin HMS (80:20) were between $388-390/t CFR. Turkish mills, preferring billet due to competitive pricing, are expected to push harder on scrap prices. However, sellers remained resilient, citing tight scrap flows and high collection costs, with workable levels for EU-origin HMS (80:20) heard at $385/t CFR. Market participants foresee a potential correction but noted no significant price changes yet.
Price assessments
India: UK-origin shredded scrap indicatives were assessed at $414/t CFR Nhava Sheva, up by $1/t d-o-d.
Pakistan: UK-origin shredded indicatives were assessed unchanged d-o-d at $426/t CFR Qasim.
Bangladesh: UK-origin shredded prices were assessed stable at $425/t CFR Chattogram.
Turkiye: US-origin HMS (80:20) bulk prices were assessed unchanged at $390/t CFR Turkiye.
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