- Turkish scrap prices tumble as demand struggles
- South Asian buyers stay cautious amid price uncertainty
The South Asian and Turkish scrap markets continued to experience cautious sentiment amid economic pressures and weak steel demand. In India, Pakistan, and Bangladesh, limited buying interest and high offer levels contributed to subdued market activity, while sluggish domestic steel sales added to the uncertainty.
Turkish scrap prices dropped to two-year lows as mills faced liquidity challenges and slowing finished product sales. With buyers remaining hesitant and sellers adjusting offers, the market outlook reflected ongoing challenges and uncertainty.
UK/Europe offers for shredded edged down by $3/t in India and Pakistan, while $1/t in Bangladesh HMS (80:20) offers from the US to Turkiye dropped $2/t d-o-d.
Overview
India: Indian buyers remained inactive today, following limited inquiries yesterday, due to low confidence and expectations of further price declines. This sentiment was compounded by Turkish scrap prices hitting two-year lows and subdued demand for finished steel, which is impacting mills’ scrap procurement activities.
Indicative offers for shredded scrap from the US and UK/Europe were reported at $380-385/t CFR Nhava Sheva, while HMS (80:20) was offered at $355-360/t CFR. Turning and boring from the UK were priced at $350/t CFR, with busheling and blue steel at $395/t and $390/t CFR, respectively. UAE-origin fabrication scrap was heard at $390/t CFR.
HMS 1 from South Africa and America was quoted at $370-375/t CFR, reflecting muted market activity amid challenging conditions.
A steel mill official commented, “Right now, our purchases are very limited for imported scrap. The market is expected to drop by another $25/t. Today’s offers for HMS from Australia are at $355/t, but there are no buyers. If offers fall below $350/t or even $340/t, then we might consider.”
Pakistan: Pakistani buyers remained cautious today amid a slowdown in the domestic steel market and limited buying interest. Although some buyers were restocking ahead of the holidays, firm seller offers led to a wait-and-watch approach. Indicative offers for shredded scrap from the UK/Europe were at $380-385/t CFR Qasim.
In the domestic market, local scrap prices were reported at PKR 138,000-140,000/t ($496-503/t), while rebars were priced at PKR 240,000-245,000/t ($862-880/t) exw, reflecting subdued market activity.
Bangladesh: Bangladeshi buyers remained inactive as steel mills grappled with liquidity challenges driven by a sharp rise in the US dollar exchange rate and a slowdown in domestic steel sales. Indicative offers for shredded scrap from Singapore, Malaysia, and Indonesia were at $390/t CFR Chattogram, while HMS (80:20) from the same origins was offered at $370/t CFR. African HMS (80:20) was available at $350/t CFR.
In the domestic market, billet prices were reported at BDT 63,000/t ($527/t), rebar was priced at BDT 74,000-76,000/t ($618-635/t) ex-Dhaka and BDT 80,000-81,000/t ($669-677/t) ex-Chattogram, while local scrap offers ranged between BDT 48,000-50,500/t ($401-422/t).
Turkiye: Turkish imported scrap prices dropped as mills continued to expect further declines due to weak finished product sales and prices. US-origin bulk HMS (80:20) was assessed at $335/t CFR, down $2/t. Tradable values for US/Baltic-origin material were at $330-333/t CFR, while seller offers remained higher at $340/t CFR. Slow steel sales, a cash crunch, and ample billet bookings reduced demand, with sellers retreating from the market. Meanwhile, US sellers held firm, supported by better demand from South America.
Price assessments
India: UK-origin shredded indicatives were assessed at $380/t CFR Nhava Sheva, down by $3/t d-o-d.
Pakistan: UK-origin shredded indicatives edged down by $3/t d-o-d to $381/t CFR Qasim.
Bangladesh: UK-origin shredded was assessed at $381/t CFR Chattogram, down by $1/t d-o-d.
Turkiye: US-origin HMS (80:20) bulk edged down by $2/t d-o-d to $335/t CFR Turkiye.
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