South Asia’s imported scrap market remained subdued today, as buyers in India, Pakistan, and Bangladesh faced various challenges including sluggish domestic steel demand and cautious purchasing strategies. In India, weak interest in imported scrap was driven by the availability of cheaper domestic materials, while Pakistan’s steel mills scaled back scrap consumption due to oversupply in the rebar market. Bangladesh saw minimal activity, with major mills pausing purchases and smaller mills struggling with financing issues.
Overview
India: India’s demand for imported scrap remained weak due to limited buyer interest at current price levels, driven by the availability of more cost-effective domestic scrap. Additionally, sluggishness in the domestic steel market has further dampened scrap purchases. Indicative offers for shredded scrap from the US and UK/Europe are at $385-390/t CFR Nhava Sheva, while HMS (80:20) is offered at $365-370/t CFR.
According to a few Indian traders, HMS (80:20) workable levels are currently varying between $355-370/t depending on payment terms for material from the US and UK. Australian HMS (80:20), priced above $380/t, is deemed unviable. Domestic scrap trades have slowed since the RCM introduction, with importers cautiously evaluating the volatile market. A trader mentioned, “If a buyer agrees to $370/t, we might compromise on profit, but there remains a significant gap between offers at $380/t and bids at $355-360/t.” Additionally, uncertainty over material flow from the Middle East is causing hesitation in making fresh bookings.
Pakistan: Pakistan’s imported scrap demand remained moderate today as domestic steel market conditions continue to impact purchasing decisions. Steel mills have reduced production due to an oversupply of rebar, leading to lower scrap consumption. Offers for shredded scrap from the UK/Europe and UAE are being met with lower bids, reflecting the need-based buying approach. Mills are focused on selling off existing rebar inventory before considering further scrap purchases.
Indicative offers for shredded scrap from the UK/Europe are at $395-400/t CFR Qasim, while offers from the UAE stand at $400-405/t CFR.
Bangladesh: Bangladesh’s imported scrap market remained quiet today, with limited activity due to reduced demand. Major steel mills have paused scrap purchases, having sufficient inventory to last until mid-Q3. Smaller mills continue to struggle with letter of credit (LC) issues.
Bulk scrap offers from the US and Singapore range between $385-395/t CFR Chattogram for HMS (80:20), but buyers are hesitant due to high inventories and financing challenges.
Market activity is expected to pick up by mid-October as monsoon impacts ease and stalled projects potentially resume.
Turkiye: The Turkish imported scrap market remained stable, with prices for deep-sea ferrous scrap unchanged. Turkish mills were pausing October shipment bookings, waiting for market clarity. Indicative prices for US-origin HMS (80:20) are clustered at $370/t CFR, with EU-origin offers at $367/t CFR.
Though the market is firm, there is slight pressure on prices due to lower European domestic scrap prices. However, a significant drop seems unlikely, and any potential decrease is expected to be minimal and short-lived. Buyers and sellers are cautiously monitoring market trends before committing to new deals.
Price assessments
India: UK-origin shredded scrap indicatives edged down by $1/t d-o-d to $390/t CFR Nhava Sheva.
Pakistan: UK-origin shredded indicatives remained unchanged at $397/t CFR Qasim d-o-d.
Bangladesh: UK-origin shredded prices were reported stable d-o-d at $401/t CFR Chattogram.
Turkiye: US-origin HMS (80:20) bulk prices remained stable d-o-d at $370/t CFR Turkiye from the previous day.
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