- Liquidity crunch, weak steel demand pressure market
- Turkish scrap prices remain firm amid tight supply
South Asia’s imported scrap market remained largely subdued, as Ramadan, fiscal concerns, and liquidity constraints weighed on buying activity across India, Pakistan, and Bangladesh.
Indian buyers remained cautious amid a bid-offer mismatch, while Pakistani mills struggled with weak steel demand and increasing Iranian scrap inflows. In Bangladesh, slow letter of credit (LC) approvals and muted construction activity kept purchases limited.
Prices of UK-origin shredded rose $1/t d-o-d in India, $2/t in Pakistan and $3/t in Bangladesh.
Similarly, Turkiye’s scrap market showed resilience, with prices remaining firm d-o-d as supply tightened and US-origin offers remained bullish.
Overview
India: India’s imported scrap market remained sluggish due to weak demand, tight liquidity, and a widening bid-offer gap. UK/European shredded was heard at $375-380/t CFR Nhava Sheva, but bids stood lower at $365-370/t. HMS (80:20) offers ranged within $350-355/t CFR, with buyers countering with bids at $340-345/t. Limited supply from Europe and a lack of US-origin offers kept trading slow. Despite rising Turkish scrap prices, Indian buyers resisted higher offers, citing sufficient domestic scrap availability and currency concerns. With Holi and the fiscal year-end approaching, market activity is expected to stay muted, with only small deals taking place.
Pakistan: Pakistan’s imported scrap market remained weak, as Ramadan slowed demand, with liquidity constraints and subdued steel sales adding pressure. Mills resisted high offers, with UK/European shredded at $380-382/t CFR Qasim, though buyers aimed for $375-378/t. UAE-origin shredded stood at $385/t CFR but was negotiable to $380/t. HMS hovered at $358/t CFR, while Iranian scrap inflows weighed on local prices. Rebar sales remained sluggish, with production running at 45-50% of capacity. Though LC conditions showed slight improvement, market activity is expected to remain slow until post-Ramadan, when demand may gradually recover.
Bangladesh: Bangladesh’s imported scrap market remained sluggish, as Ramadan slowed buying interest and LC openings continued at a slower pace. Buyers resisted high offers, with Australian shredded at $380-385/t CFR and Hong Kong PNS at $375-380/t CFR. Malaysian busheling stood at $385-390/t CFR. Suppliers focused more on PNS and HMS rather than shredded.
A trader said, “LC conditions showed slight improvement, but with construction activity still slow, market recovery is expected only after Ramadan, keeping trade sentiment muted for now.”
Turkiye: Turkish deep-sea scrap import prices edged higher, as mills struggled to resist firm offers amid tight supply and bullish US market sentiment. US-origin HMS (80:20) offers stood at $367/t CFR, increased by $1/t d-o-d. A Baltic-origin deal was confirmed at $365.5/t levels, while EU-origin scrap hovered around $360-363/t CFR. Mills faced squeezed margins, limiting their willingness to pay more, especially with rebar demand sluggish due to Ramadan.
However, rising collection costs in Europe and a firmer euro supported higher seller targets. With US scrap sellers aiming for $370/t CFR, further price increases seemed likely despite Turkish mills’ resistance.
Price assessments
India: UK-origin shredded indicatives were assessed at $376/t CFR Nhava Sheva, up by $1/t d-o-d.
Pakistan: UK-origin shredded indicatives rose by $2/t to $382/t CFR Qasim.
Bangladesh: UK-origin shredded indicatives were inched up d-o-d at $383/t CFR Chattogram.
Turkiye: US-origin HMS (80:20) bulk scrap prices were increased by $1/t d-o-d at $367/t CFR Turkiye.
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