- India’s safeguard duty lifts domestic steel prices
- Prices fall in Turkiye amid lower Chinese billet tags
The South Asian imported scrap market reflected a cautious and subdued tone today, influenced by a mix of global uncertainties, local demand fluctuations, and macroeconomic pressures. While India’s domestic steel market saw a lift following the implementation of a 12% safeguard duty on certain steel imports, imported scrap inquiries remained thin.
Pakistan continued to grapple with weak demand and falling prices, while Bangladesh’s market remained muted amid currency concerns and low finished steel sales.
In Turkiye, sluggish demand and competitive billet offers from China added further weight to already fragile sentiment. This also kept South Asian buyers on edge.
D-o-d, UK-origin shredded scrap offers edged down by $1/t in India and $2/t in Pakistan, while they remained unchanged in Bangladesh. US-origin bulk HMS 80:20 to Turkiye also remained unchanged d-o-d.
Overview
India: India’s imported scrap market displayed a mixed trend today, as the recently imposed 12% safeguard duty on certain non-alloy and alloy steel flat product imports began impacting the market. While this lifted domestic steel prices, imported scrap inquiries remained limited due to cautious buyer sentiment and availability of more affordable local alternatives.
A supplier said, “Demand is there, but not many want to increase prices.”
In Chennai, conditions were mostly steady, though some expect changes soon amid tight liquidity and a focus on ready cargo.
Shredded offers from the UK/EU were heard at $375-378/t CFR Nhava Sheva but drew no firm bids. HMS 80:20 offers from the UK/EU hovered at $350/t and from West Africa stood at $355-365/t, based on container size.
Domestically, steel prices surged d-o-d: sponge iron rose by INR 400/t and semi-finished steel by INR 400-1,000/t, while rebar tags in Mandi climbed up by INR 1,000/t to INR 49,000/t. BigMint’s end-cutting scrap index also rose INR 700/t d-o-d to INR 37,600/t DAP. Despite the upbeat pricing, buyers remained wary of sudden hikes by secondary mills, keeping trade activity subdued.
Pakistan: Pakistan’s imported scrap market remained sluggish, as weak domestic steel demand and falling rebar prices kept buyers on the sidelines. Shredded from the EU dropped to $370-375/t CFR Qasim, tracking the softening trend in Turkiye and pressure from low Chinese billet offers.
Rebar and billet prices in the local market continued to decline, dragging overall sentiment down. Rebar prices ranged between PKR 230,000-240,000/t, while billets were at PKR 200,000-205,000/t and local scrap was at PKR 135,000-140,000/t.
Despite offers being termed reasonable, buyer interest stayed limited, with no strong recovery signs yet.
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.
Offers for shredded from Australia hovered at $385/t CFR Chattogram, while buyers’ expectations were at around $380/t CFR. 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 scrap market remained weak, as mills delayed bookings due to sluggish finished steel demand and stock build-up. Sellers faced pressure from falling prices and unfavourable EUR/USD parity, with EU-origin HMS heard at around $325/t CFR. US offers hovered near $335/t, but buyers were unresponsive. Concerns over cheaper Chinese billet offers added further downside risk, leaving both sides cautious. Market sentiment was fragile, with no signs of a rebound amid global and local instability.
Price assessment
India: UK-origin shredded indicatives were assessed at $375/t CFR Nhava Sheva, down by $1/t d-o-d.
Pakistan: UK-origin shredded indicatives stood at $375/t CFR Qasim, down by $2/t d-o-d.
Bangladesh: UK-origin shredded indicatives remained unchanged d-o-d at $385/t CFR Chattogram.
Turkiye: US-origin HMS (80:20) bulk scrap prices remained unchanged d-o-d $333/t CFR Turkiye.
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