- India sees weak demand amid wide bid-offer gaps
- Turkish tags rise on easing US-China tariff tensions
South Asia’s imported scrap markets showed mixed trends d-o-d, with prices of UK-origin shredded up by $2/tonne (t) in India, down by $4/t in Pakistan, and up by $1/t in Bangladesh. Notably, India saw weak demand amid the price rise, as wide bid-offer gaps slowed down trade. On the other hand, the price drop in Pakistan failed to spark buying interest. In contrast, Bangladesh remained stable, with ongoing negotiations in both bulk and containerised scrap segments.
In Turkiye, sentiment improved after the easing of US-China trade tensions. US-origin HMS (80:20) bulk scrap prices increased by $4/t d-o-d, while recent EU-origin deals showed firm pricing.
Market overview
India: Imported scrap demand in India remained sluggish, as wide bid-offer gaps continued to stall trades. Buyers largely stayed on the sidelines, citing unworkable prices despite steady inquiries.
Fresh offers included Mozambique-origin HMS 80:20 at $365/t CFR Mundra for 24-t loading, Kuwait-origin HMS 1 at $380/t, UK-origin HMS 80:20 at $345-350/t, and Brazil-origin HMS 70:30 at $345/t. However, these values failed to attract buying interest, with market participants reluctant to accept current prices amid uncertain domestic sentiments.
Pakistan: Imported shredded offers in Pakistan fell slightly, with European-origin material being quoted within $376-380/t CFR. However, most buyers showed interest only at around $375/t, which limited upward price movement. Additionally, UK-origin shredded offers stood at around $375/t CFR, but those at $385/t appeared unworkable amid soft buying interest.
Meanwhile, shredded from Dubai continued to flow steadily into Pakistan due to its short 4-5 day transit time, leading to a regular supply despite weak overall demand.
Bangladesh: The imported scrap market showed stable activity, with buyers actively negotiating across both bulk and containerised segments. Bulk HMS 80:20 from Singapore was offered at $365/t CFR Chattogram, while bids remained slightly lower at $360/t, reflecting a cautious buying stance.
In the containerised segment, shredded from Australia was heard offered at $375-378/t. Meanwhile, Australian HMS 1 was quoted at around $360-364/t CFR, with sellers eyeing Bangladesh due to favourable freight economics.
Turkiye: Imported ferrous scrap prices increased, driven by renewed market optimism following the easing of trade tensions between the US and China. The two countries reached a 90-day temporary tariff reduction agreement during recent talks in Switzerland, boosting sentiment across global commodity markets.
In response, sellers raised their offers. Tradable values for US/Baltic-origin HMS 80:20 were heard in the range of $344-353/t CFR Turkiye. The market firmed up, with European-origin scrap at around $340/t, Baltic at $342-343/t, and US-origin material reaching $343-346/t CFR. However, a Turkish mill-side participant noted that end-users were not yet accepting higher prices, citing $340/t CFR as the maximum workable level for US-origin material.
While short-term sentiment was strong, improved US-China trade could lead to higher Chinese steel exports and increased US scrap imports to Turkiye, potentially pressuring markets in the longer term.
Price assessments
India: UK-origin shredded indicatives were assessed at $372/t CFR Nhava Sheva, up by $2/t d-o-d.
Pakistan: UK-origin shredded indicatives stood at $374/t CFR Qasim, down by $4/t d-o-d.
Bangladesh: UK-origin shredded prices were assessed at $378/t CFR Chattogram, up by $1/t compared to previous prices.
Turkiye: US-origin HMS (80:20) bulk scrap prices were assessed at $344/t CFR Turkiye, up by $4/t d-o-d.
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