- Indian scrap buyers resist high offers
- Turkiye scrap prices hit 3-year low
South Asia’s imported scrap markets faced a challenging week marked by persistent caution and oversupply. In India, muted buyer interest stemmed from high domestic inventories, alternative raw material choices, and the impact of a 12% safeguard duty, which provided only temporary price support.
Pakistan’s market was similarly subdued, weighed down by declining steel demand and falling local billet and rebar prices, while traders resisted current offer levels.
Meanwhile, Bangladesh saw minimal new bookings as mills prioritised July shipments over fresh imports, and Turkiye experienced its lowest scrap prices in over three years due to oversupply.
Overall, regional sentiment remained soft as buyers awaited clearer market signals before committing to additional scrap purchases.
D-o-d, UK-origin shredded scrap offers edged down by $3/t in India and $1/t in Pakistan while remaining unchanged in Bangladesh. US-origin bulk HMS 80:20 offers to Turkiye remained unchanged d-o-d.
Overview
India: India’s imported scrap market remained largely subdued amid buyer caution, weak global cues, and domestic competition. Shredded scrap offers from the UK/EU stood at $370-375/t CFR Nhava Sheva, but bids lagged at $365-370/t, creating a wide gap.
Despite a marginal seasonal uptick, fresh deals were limited due to low interest in high-priced cargoes and preference for short-haul or ready shipments.
Domestic alternatives like sponge iron and weak liquidity further curtailed import appetite. The recent 12% safeguard duty offered temporary support to steel prices, but failed to lift scrap demand meaningfully. With falling Turkish scrap prices, rising forex costs, and full inventories at key ports like Kandla, sentiment remained soft.
Pakistan: Pakistan’s imported scrap market remained subdued amid sluggish domestic steel demand, falling rebar and billet prices, and mounting global pressure, especially from Turkiye’s bearish market.
Shredded scrap offers from the EU and UK slipped to $370-375/t CFR Qasim, with buyers resisting above-$370/t levels. Sellers, however, showed reluctance to lower prices further.
Domestic billet and rebar prices fell by PKR 5,000/t, while local scrap held steady at PKR 135,000-140,000/t. Trade remained limited, with only sporadic container deals reported. Rising uncertainty, coupled with industrial activity operating at just 30-40% of capacity, kept buyer appetite weak.
Bangladesh: Bangladesh’s imported scrap market remained sluggish as buyers stayed cautious amid ongoing price declines and limited immediate demand. With sufficient cargoes already secured for May-June, most mills held off on fresh bulk bookings, focusing instead on July shipments.
Container activity was minimal, with a Dhaka-based buyer securing Australian HMS 80:20 at $360/t CFR, while shredded offers were around $380-390/t CFR which struggled to attract interest. Bulk offers from the US and Japan also faced buyer pushback, with expectations of further price drops.
Rising freight costs and higher energy tariffs weighed on sentiment, prompting some small mills to scale back production. The market stayed subdued due to a persistent bid-offer gap and soft downstream demand.
Turkiye: The Turkish imported scrap market weakened further as oversupply dragged prices to their lowest since June 2022 at around $325/t CFR levels. Mills actively booked bulk cargoes at lower rates, with US, Baltic, and UK-origin HMS 80:20 deals ranging from $315-325/t CFR.
Despite a brief rebound in domestic rebar sales, the overall sentiment stayed bearish due to a glut of available cargoes and sellers rushing to offload stock.
Traders noted a lack of buying appetite and mounting pressure on prices, as suppliers struggled to cover losses. While some mills restocked for May shipment, the market remained under strain from accumulated scrap and a cautious supplier outlook.
Price assessments
India: UK-origin shredded indicatives were assessed at $372/t CFR Nhava Sheva, down by $3/t d-o-d.
Pakistan: UK-origin shredded indicatives stood at $370/t CFR Qasim, down by $1/t d-o-d.
Bangladesh: UK-origin shredded indicatives remained unchanged d-o-d at $380/t CFR Chattogram.
Turkiye: US-origin HMS (80:20) bulk scrap prices remained unchanged d-o-d $325/t CFR Turkiye.
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