- Indian importers cautious amid weak steel demand
- Turkish scrap prices drop $15/t on low mill buying
The South Asian imported ferrous scrap market remained under pressure last week, as muted steel demand, declining global scrap prices, and regional uncertainties continued to weigh on buying sentiment. India, Pakistan, and Bangladesh all reported sluggish activity, with buyers hesitant amid falling finished steel prices and wide bid-offer gaps.
Market participants also faced added confusion due to rumours of safeguard duties and macro-economic concerns, leading to delayed procurement and cautious negotiations.
Meanwhile, Turkiye’s weak rebar demand and oversupply of finished steel further dampened regional confidence, contributing to a broadly subdued scrap trading environment across South Asia.
UK-origin shredded scrap offers decreased by $4/t in India, and by $3/t in Pakistan while remaining unchanged in Bangladesh. US-origin bulk HMS 80:20 offers to Turkiye witnessed a free fall of $15/t in comparison with the last closing on Friday.
Overview
India: India’s imported ferrous scrap market remained sluggish amid weak global cues, a sharp drop in domestic steel prices, and a slowdown in the Turkish market.
Shredded scrap offers from the UK/Europe hovered at $375-380/t CFR Nhava Sheva, but buyers stayed cautious with bids trailing by $5-10/t. UK and Australian HMS (80:20) saw limited interest at $350-360/t CFR.
Market sentiment was further hit by confusion over unverified rumours of a 12% safeguard duty on steel imports, which, though is still pending.
A widening bid-offer gap, rising sponge iron usage, and falling rebar and semi-finished steel prices kept procurement sentiment muted across regions.
Pakistan: Pakistan’s imported scrap market stayed sluggish, weighed down by weak steel demand, slow rebar sales, and ongoing global price corrections. Offers for UK/EU-origin shredded scrap slipped to $375-380/t CFR Qasim. The downward trend in Turkish scrap prices and soft Chinese billet offers further pressured market sentiment, keeping buyers cautious and limiting fresh bookings.
Bangladesh: Bangladesh’s imported scrap market remained quiet, with limited buyer interest and weak sentiment prevailing. Most buyers stayed on the sidelines amid currency concerns and soft finished steel demand. Sellers showed willingness to negotiate, but offers remained firm, creating a gap between expectations. The overall mood was cautious, with participants preferring to wait for clearer market direction. Sentiment was further dampened by muted construction activity and liquidity challenges, keeping scrap trade subdued.
Offers for shredded scrap from Australia hovered at $385/t CFR Chattogram while buyers’ expectations were around $380/t CFR levels. While HMS 80:20 was at $365-370/t CFR, buyers bid at $360/t CFR.
Singapore PNS was offered at $395/t CFR, but saw no bids beyond $385/t CFR.
Turkiye: The Turkish imported ferrous scrap market remained subdued as mills postponed purchases amid weak rebar demand and unclear pricing. With finished and semis steel inventories piling up — billets, wire rods, and rebars filling storage yards — mills showed little urgency to procure scrap, buying only to maintain operations and cash flow.
Sellers, meanwhile, held back due to thin margins, though some, facing mounting pressure, sold at prevailing market levels.
A recycler noted that mills, burdened with unsold stock, are dictating low buying prices.
US-origin HMS 80:20 offers hovered at around $330-340/t CFR, but desperation among sellers continues to drive prices downward.
Price assessments
India: UK-origin shredded indicatives were assessed at $376/t CFR Nhava Sheva, down by $4/t compared to the last closed on Friday.
Pakistan: UK-origin shredded indicatives stood at $377/t CFR Qasim, down by $3/t compared to the last closed on Friday.
Bangladesh: UK-origin shredded indicatives remained unchanged at $385/t CFR Chattogram.
Turkiye: US-origin HMS (80:20) bulk scrap prices plunged by $15/t to $333/t CFR Turkiye.
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