- India, Pak see limited trade amid soft global tags
- Bangladesh faces tight forex conditions, LC issues
The South Asian imported scrap market experienced mixed trends, with varied regional dynamics shaping the market outlook. Notably, UK-origin shredded scrap offers dropped by $2/tonne (t) in India, $3/t in Bangladesh, and $4/t in Pakistan. US-origin bulk HMS 80:20 offers to Turkiye dropped by $7/t in comparison to the last close on Friday.
India saw a cautious approach from buyers, as domestic steel prices showed some improvement, but concerns over currency volatility and softening global prices, especially from Turkiye, limited activity.
Pakistan’s market remained subdued post-Eid, with sluggish local sales and limited bidding activity, while Bangladesh faced tight forex conditions and letter of credit (LC) issues, which dampened buying interest.
Meanwhile, Turkiye’s scrap market struggled under a bearish sentiment, marked by significant price drops and weak demand, reflecting broader regional uncertainties.
Overview
India: India’s imported scrap market showed mixed sentiment, with improved domestic steel prices spurring some bookings, but caution resurfacing due to currency volatility and softening Turkish prices.
UK/Europe shredded offers hovered at around $390/t CFR Nhava Sheva, while buyers aimed for $380/t, resulting in limited trade.
HMS 80:20 from Australia was booked at $362-363/t, while Mozambique-origin HMS 90:10 was offered at $370/t, with bids at $364-365/t.
UK sheared HMS traded at $350-355/t CFR.
The availability of domestic scrap and affordable DRI further dented imported demand. The weakening rupee and fears of cheap Chinese steel imports also kept many buyers on the sidelines.
Pakistan: Pakistan’s imported scrap market remained quiet after Eid, weighed down by sluggish local sales, limited bids, and global price softness. Turkish import declines and weak Chinese finished steel offers further dampened sentiment.
UK/Europe shredded was offered at around $390/t CFR, with some trades at $383-385/t under LC terms, while bids hovered near $380-382/t.
Dubai HMS was heard at $360-365/t CFR.
Domestic scrap remained at around PKR 145,000-148,000/t delivered, and rebar sales were slow at PKR 230,000-240,000/t ex-factory.
With falling global benchmarks and post-holiday inertia, mills are refraining from fresh bookings, waiting for clearer cues from both demand trends and the upcoming budget.
Bangladesh: Bangladesh’s imported scrap market remained sluggish post-Eid, with buying activity constrained by ongoing LC issues and tight forex liquidity. Despite strong export and remittance inflows in March, mills stayed cautious, focusing on domestic scrap amid financial uncertainties.
Shredded from Australia/New Zealand was offered at $390-392/t CFR, with bids trailing at $385/t. Australian HMS 90:10 saw offers at $385/t CFR, with limited deals reported at $371-372/t. Japanese rebar bundles were offered at $395/t, with previous bookings at $390-392/t CFR.
Singapore-origin HMS 80:20 was offered at $375/t CFR, with bids below $365/t. Japanese H2 bulk offers stood at $365/t CFR, but no confirmed bids emerged.
Offers for Busheling scrap were heard at $395-400/t CFR, with no bids heard.
The market remains under pressure from Hong Kong Convention (HKC) compliance concerns, inflation, and political instability, keeping sentiment subdued as buyers wait for clearer cues before stepping in.
Turkiye: The Turkish imported scrap market remained under strong bearish pressure in the last couple of days, with US bulk HMS 80:20 prices plunging by $25-30/t since early April amid weak steel demand and low rebar sales.
Mills booked limited May shipment cargoes, including a Baltic-origin deal at $350/t CFR, viewed as unrepeatable by many. Declining billet prices and falling HMS collection costs in Benelux added to the downward momentum.
While sellers struggled to match Turkish mills’ lower price targets, mills were cautious due to sluggish rebar sales, tariff uncertainty, and elevated energy costs. As a result, both US- and European-origin scrap indices dropped sharply, reflecting overall weak sentiment.
Price assessments
India: UK-origin shredded indicatives were assessed at $385/t CFR Nhava Sheva, edging down by $2/t compared to the last close on Friday.
Pakistan: UK-origin shredded indicatives stood at $386/t CFR Qasim, decreasing by $4/t in comparison with the last close on Friday.
Bangladesh: UK-origin shredded indicatives stood at $390/t CFR Chattogram, down by $3/t compared to the last close on Friday.
Turkiye: US-origin HMS (80:20) bulk scrap prices were assessed at $358/t CFR Turkiye, decreasing by $7/t compared to the last close on Friday.
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