- Indian buyers hit by INR slide, approaching monsoon
- Rising freight keeps Bangladesh buyers on backfoot
South Asia’s imported scrap market remained sluggish, with buying activity dampened by a mix of weak steel demand, rising freight rates, and escalating geopolitical tensions.
In India, concerns over regional unrest in the western and northern states, coupled with rupee depreciation and the approaching monsoon, kept buyers on the sidelines.
Pakistan saw only a marginal price rise, as economic uncertainty and soft construction demand limited purchasing interest. Bangladesh faced persistent liquidity issues and a seasonal demand lull, further aggravated by high freight costs.
Heightened geopolitical risks across the region added to market caution, keeping overall sentiment weak and trade volumes low.
D-o-d, UK-origin shredded scrap offers remained unchanged in Bangladesh, while edging up $2/t in India and by $4/t in Pakistan. US-origin bulk HMS 80:20 offers to Turkiye edged up by $2/t today.
Market overview
India: India’s imported scrap market saw muted activity as buyers remained hesitant due to weak domestic steel demand, geopolitical tensions, and the approaching monsoon season.
Shredded scrap offers from UK/EU were stable at around $370-375/t CFR, but bids remained lower at $360-365/t, creating a significant bid-offer gap and limited trades. EU HMS 80:20 was offered at $350-355/t CFR, but resistance from buyers kept deals below or at par $350-352/t. Mills showed little interest in forward bookings, preferring to secure ready cargoes instead.
The depreciation of the rupee and regional unrest, especially in the western and northern parts of India, further dampened market sentiment.
Pakistan: Pakistan’s imported scrap market witnessed a slight rise, driven mainly by higher freight costs that pushed shredded offers to $375-378/t CFR Qasim. However, the price increase failed to stir significant buying interest, as most mills remained cautious due to sluggish construction activity, weak finished steel demand, and squeezed rebar margins. Mills continue to resist elevated offers, booking only limited quantities given their comfortable inventory levels. While a few sellers anticipate prices could breach the $390/t CFR mark, buyers remain wary amid persistent economic uncertainty and fragile market conditions.
Bangladesh: Bangladesh’s imported scrap market remained sluggish, with mills holding back on purchases due to rising freight costs, weak construction activity, and tight rebar margins. Liquidity constraints and seasonal demand softness further dampened buying appetite.
Offers for Australian shredded and PNS stood at $375-380/t and $385/t CFR Chattogram respectively, but buyer resistance kept trade thin, with a visible bid-offer gap of $5-7/t.
Limited deals were reported, including Australian HMS 80:20 at $355/t and Chilean HMS 90:20 40ft at $348/t CFR. New Zealand shredded saw offers hovering around $385/t, while Malaysian loose busheling was heard at $385/t CFR.
Scrap from the UK and EU remained largely unviable due to high freight rates, adding to the overall market stagnation.
Turkiye: The Turkish imported scrap market saw a slight uptick with US-origin bulk HMS 80:20 assessed at $339/t CFR, up $1/t d-o- d. A couple of US-origin cargoes were booked by Izmir mills at $337-342/t CFR where HMS 80:20, with shredded and bonus grades reached up to $359/t CFR, reflecting firm seller sentiment.
However, most mills remained cautious due to sluggish rebar sales, limiting broader buying interest. Short-sea market activity was slow, with Romanian-origin HMS 80:20 heard at $318-320/t CFR, though many traders doubted these levels were achievable. Sellers continued to push higher offers, anticipating a near-term price increase.
Price assessments
India: UK-origin shredded indicatives were assessed at $370/t CFR Nhava Sheva, up by $2/t d-o-d.
Pakistan: UK-origin shredded indicatives stood at $376/t CFR Qasim, up by $4/t d-o-d.
Bangladesh: UK-origin shredded prices were kept stable d-o-d at $376/t CFR Chattogram.
Turkiye: US-origin HMS (80:20) bulk scrap prices were assessed at $340/t CFR Turkiye, up by $2/t d-o-d.
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