- South Asian scrap demand remains weak
- Turkiye scrap prices hold steady
South Asian imported ferrous scrap markets remained under pressure as weak steel demand, tight liquidity, and bid-offer mismatches kept buyers cautious. In India, ample domestic scrap supply reduced the interest for imports, while Pakistan’s market slowed further ahead of Ramadan. Bangladesh saw limited bookings due to high inventories and stalled projects, with mills preferring domestic scrap amid LC restrictions.
Meanwhile, Turkiye’s market faced a standoff as mills resisted price hikes despite supply constraints.
UK/Europe shredded scrap offers remained unchanged d-o-d in India and Bangladesh, while edged up $2/t in Pakistan. US bulk HMS 80:20 offers to Turkiye also rose marginally by $1/t on the day.
Overview
India: India’s imported scrap market remained sluggish as weak stee demand, tight liquidity, and a bid-offer mismatch kept buyers on the sidelines. Ample domestic scrap availability further reduced the need for imports. No firm offers emerged from the US, while UK/Europe-origin shredded was heard at $380-385/t CFR Nhava Sheva, with bids lower at $365-370/t CFR. HMS (80:20) stood at $345-350/t CFR.
Pakistan: Pakistan’s imported scrap market remained sluggish as weak liquidity and subdued steel demand kept buyers cautious ahead of Ramadan. Shredded offers from the UK/Europe were at $380-385/t CFR Qasim, but lower bids at $378-382/t CFR restricted deals. Suppliers initially quoted higher but adjusted downward due to weak demand.
Local scrap prices stood at PKR 140,000-145,000/t ($501-519/t) exw, while rebar prices were at PKR 245,000-250,000/t ($876-894/t) exw. Market sentiment remained cautious, with expectations of further slowdown during Ramadan.
Bangladesh: Bangladesh’s imported scrap market remained sluggish as weak steel demand, high inventories, and stalled government projects kept buyers away.
Additionally, with Ramadan approaching, mills were hesitant to book fresh cargoes.
Shredded scrap from Europe was offered at $385-388/t CFR Chattogram, but bids remained lower at $374-375/t CFR.
Australian shredded saw offers at $385/t CFR, with negotiations expected to settle near $380/t CFR. PNS and Busheling stood at $388-392/t CFR, while Brazilian HMS (80:20) hovered at $365/t CFR.
Domestic scrap prices rose to BDT 56,000-58,000/t ($461-477/t) as buyers preferred more of domestic scrap due to LC opening issues. Rebar was priced at BDT 86,000-88,000/t ($707-728/t) in Chattogram and BDT 82,000-83,500/t ($675-687/t) in Dhaka, but sales remained slow amid a struggling economy and lack of new projects.
Turkiye: The Turkish imported scrap market remained in a standoff as deep-sea prices held steady despite weak rebar sales and a sluggish steel market. Mills resisted price hikes amid slow domestic and export demand, while European and UK recyclers stayed firm due to currency strength. US suppliers enjoyed high local demand, limiting scrap flow to Turkiye. Baltic sellers showed willingness for lower deals, but overall, supply constraints kept prices from falling sharply.
Meanwhile, the US outlook remained bullish, hinting at a potential price increase. The market remained cautious, with mills operating on a hand-to-mouth basis.
Price assessments
India: UK-origin shredded indicatives were assessed stable d-o-d at $373/t CFR Nhava Sheva.
Pakistan: UK-origin shredded indicatives edged up by $2/t d-o-d to $385/t CFR Qasim.
Bangladesh: UK-origin shredded indicatives remained unchanged d-o-d at $385/t CFR Chattogram.
Turkiye: US-origin HMS (80:20) bulk scrap prices were assessed at $363/t CFR Turkiye, up by $1/t d-o-d.
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