South Asia: Imported ferrous scrap market sees mixed trend, Indian buyers cautious

• Depreciating INR, weak steel sales weigh on India
• Turkiye’s offers hold firm despite market slowdown

South Asia’s imported scrap market remained mixed, with varying demand trends across key countries. Parallelly, prices of UK-origin shredded fluctuated across the three key regions, with India’s remaining stable d-o-d, while slight declines were noted in Pakistan and Bangladesh.

India’s scrap buying stayed sluggish due to weak steel sales and a depreciating INR, while Pakistan showed better momentum as buyers prepared for Ramadan, though price volatility kept activity cautious. Bangladesh’s mills held back on large imports despite local scrap shortages, keeping a close eye on global prices. Meanwhile, Turkiye’s market remained stable, with firm offers from recyclers despite slowed restocking.

Overview

India: India’s imported scrap demand remained under pressure, as sluggish finished steel sales and the INR’s depreciation against the USD limited buying interest. Shredded offers from the UK/Europe stood at $370-375/t CFR Nhava Sheva, with bids at $360-365/t CFR. HMS (80:20) from the UK/Europe and West Africa was offered at $345-355/t CFR, while US turnings were heard at $335-340/t CFR.

Pakistan: In Pakistan, imported scrap procurement outpaced that of India, as some buyers started restocking ahead of Ramadan. However, activity remained cautious amid price volatility. Shredded offers from the UK/Europe stood at $380-385/t CFR Qasim, varying by yard, while a few deals were heard concluded at $378-381/t CFR.

Bangladesh: Bangladesh’s imported scrap market stayed cautious, as weak steel demand persisted due to sluggish construction activity and a lack of new government projects. Despite local scrap shortages, mills remained reluctant to book large volumes, keeping a close watch on global price trends. Australian shredded offers were heard at $370-375/t CFR Chattogram, US shredded at $365-370/t CFR, and Hong Kong PNS at $378-380/t CFR.

Local scrap prices were heard at BDT 56,000-57,000/t ($459-467/t) for PNS, and others were at BDT 53,000-55,000/t ($435-451/t). Rebars were at BDT 79,000-83,000/t ($648-680/t) ex-Dhaka and BDT 85,000-87,000/t ($697-713/t) ex-Chattogram.

Turkiye: Turkiye’s imported scrap market remained range-bound, as restocking demand slowed, but recyclers held firm on offers. Baltic-origin HMS (80:20) was booked at $355/t CFR, with similar tradable values for US and Baltic material. Some mills were willing to pay above $355/t CFR if urgently needed, though rebar demand showed signs of weakening. EU-origin HMS (80:20) offers were heard at $353-355/t CFR, while collection costs in Benelux rose to EUR 295-305/t. With mills having already secured significant volumes, the market is expected to stay quiet in the coming days.

Price assessments

India: UK-origin shredded indicatives were assessed stable compared to the last close at $373/t CFR Nhava Sheva.

Pakistan: UK-origin shredded indicatives were at $379/t CFR Qasim, down $1/t compared to the last close on Friday.

Bangladesh: UK-origin shredded was assessed at $384/t CFR Chattogram, down by $1/t compared to the last close on Friday.

Turkiye: US-origin HMS (80:20) bulk scrap edged up by $1/t to $354/t CFR Turkiye, in comparison with the last close on Friday.