South Asia’s imported scrap markets remained largely quiet this week amid weak steel demand, seasonal factors, and cost concerns.
In India, buying interest stayed low due to cheaper alternatives like sponge iron and a widening bid-offer gap, despite cargoes being diverted from Pakistan. Pakistan’s market was under pressure from high freight surcharges and tight rebar margins, limiting fresh trades. Bangladesh faced subdued sentiment as the monsoon season and financial constraints kept mills on the sidelines, with activity slowing further ahead of Eid.
However, Turkiye recorded stable prices following recent deep-sea deals after a national holiday had paused trading.
Market overview
India: India’s imported scrap market remained muted amid lacklustre steel demand, ample cheaper sponge iron alternatives, and a widening bid-offer gap. UK/Europe-origin shredded was offered at $370-375/t CFR Nhava Sheva, yet buyers held bids at $360-365/t, and only sporadic purchases were concluded at $365/t.
HMS 80:20 offers stood at $345-355/t, though mills sought $340-350/t.
The diversion of Pakistan-bound cargoes–driven by emergency shipping surcharges–added to near-term supply, but Indian buyers stayed cautious.
With the monsoon season approaching and finished steel margins under pressure, sentiment remained subdued and fresh booking activity was minimal.
Pakistan: Pakistan’s imported scrap market remained under pressure amid rising freight costs, with an emergency surcharge by shipping lines inflating landed prices and discouraging fresh bookings. Mills showed limited buying interest due to weak construction demand and narrow rebar margins.
Offers for shredded scrap from Europe/UK reached $385-388/t CFR Port Qasim, while tradable levels hovered around $380-382/t, as buyers pushed back on higher rates.
Sellers began diverting cargoes to India due to better prices.
Locally, scrap prices stood at PKR 138,000-140,000/t ($496-504/t), while rebar was offered at PKR 230,000-242,000/t ($827-871/t) exw. Though sales are going on, the market faces a seasonal lull with mills cautious amid cost pressures.
Bangladesh: Bangladesh’s imported scrap market stayed sluggish due to weak steel demand, the onset of the monsoon season, and slowing construction activity. Mills remained cautious, preferring to manage inventories amid financial concerns, despite no major LC issues. Trade remained limited due to a persistent bid-offer mismatch, with containerised shredded from Australia offered at $375-380/t CFR Chattogram, HMS 1 at $360-365/t, and HMS 80:20 at $350-355/t.
Local market sentiment was also soft, with domestic scrap prices at BDT 53,000-55,000/t ($451-468/t). Rebar prices dropped to BDT 80,000-82,000/t ($681-698/t) in Dhaka and BDT 83,000-85,000/t ($707-724/t) in Chattogram. With Eid approaching and rainy weather impacting site activity, further slowdown is expected.
Turkiye: The Turkish imported scrap market remained stable at $347/t CFR for US-origin bulk HMS 80:20, with no change from the previous day due to a national holiday limiting activity. Earlier in the week, four deep-sea cargoes were booked at rising prices, driven by low scrap inventories and June shipment needs. US-origin HMS 80:20 was sold at $347/t CFR, with shredded and bonus at $367/t, while Baltic and European cargoes traded slightly lower.
Despite the pause in fresh bookings, prices held firm, supported by mills raising finished steel prices to offset elevated scrap costs. The US-EU scrap price premium stood at $6-7/t.
Price assessments
India: UK-origin shredded indicatives were assessed at $367/t CFR Nhava Sheva, unchanged d-o-d.
Pakistan: UK-origin shredded indicatives stood at $383/t CFR Qasim, up by $6/t d-o-d.
Bangladesh: UK-origin shredded prices were assessed at $377/t CFR Chattogram, down by $1/t d-o-d.
Turkiye: US-origin HMS (80:20) bulk scrap prices were assessed at $347/t CFR Turkiye, unchanged d-o-d.
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