- India buyers cautious amid weak demand
- Pakistan market quiet, high freights limit trade activity
South Asia’s imported scrap market showed stable trends amid weak steel demand, elevated freight rates, and cautious buying. India held steady, Pakistan saw limited trades despite a rebar price hike, Bangladesh remained quiet ahead of Eid, while the Turkish market stayed flat with mills delaying fresh bookings.
Overview
India: The imported scrap market remained stable as buyers pushed back against higher offer levels, citing subdued steel demand and the easy availability of alternatives such as sponge iron.
Shredded scrap offers were mostly in the range of $370-375/t CFR, though buying interest was softer, with bids closer to $365/t. In recent deals, 1,000 t of Poland-origin HMS 80:20 was sold at $362/t CFR Mundra.
Pakistan: The imported scrap market remained sluggish, weighed down by consistently high freight costs and weak demand in the domestic steel sector. Suppliers from the UK and Europe offered shredded scrap at $380-388/t CFR Port Qasim, but buyer interest was limited, mainly focused near the lower end of the range. As a result, firm purchases were scarce, and trading activity remained minimal. Additionally, HMS sheared scrap from the UAE was offered at $370/t CFR Qasim, while HMS standard from the UAE was quoted at $366/t CFR Qasim.
According to a market participant, major Pakistani mills raised rebar prices by PKR 5,000/t, effective 23 May, citing higher raw material costs, increased container freight charges, and depreciation of the rupee. The new rebar price stands at PKR 237,000-239,000/t, while rebar with less rebate is being offered at PKR 234,000-236,000/t.
Bangladesh: The imported scrap market in Bangladesh remained under pressure as mills held back on fresh purchases amid ongoing financial constraints and a seasonal lull. With the monsoon season and Eid holidays approaching, trade slowed further, and many buyers focused on conserving cash and managing stock levels.
Domestic scrap was priced between BDT 53,000-55,000/t ($435-452/t), while rebar prices ranged from BDT 80,000 to BDT 82,000/t in Dhaka and BDT 84,000-86,000/t in Chattogram ($657-707/t).
Turkiye: The deepsea ferrous scrap market remained steady d-o-d, with prices for US/Baltic-origin HMS 80:20 holding around $347/t CFR. Both buyers and sellers showed caution, resulting in muted trading activity and little movement in price levels.
This subdued market mood is mainly due to slow domestic rebar demand, which has started the week weaker than mills anticipated. Mills are holding back on purchases, expecting no immediate supply disruptions or sudden demand surges from Asia or other regions that would justify restocking aggressively.
With no pressure on sellers and bearish expectations for June domestic scrap settlements in the US, buyers feel confident they can dictate prices at current tradable levels. Overall, the market outlook remains cautious and quiet, with no clear catalysts to push prices higher in the near term.
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 $385/t CFR Qasim, up by $2/t d-o-d.
Bangladesh: UK-origin shredded prices were assessed at $377/t CFR Chattogram, unchanged d-o-d.
Turkiye: US-origin HMS (80:20) bulk scrap prices were assessed at $347/t CFR Turkiye, unchanged d-o-d.
Leave a Reply