The South Asian ferrous scrap market witnessed sluggish activity across key regions–India, Pakistan, and Bangladesh–amid a convergence of weak steel demand, high freight costs, and seasonal slowdowns. Mills in all three countries showed caution in booking fresh scrap cargoes, weighed down by tight liquidity, thin margins, and the availability of cheaper alternatives like DRI and pellets.
Meanwhile, the Turkish imported scrap market also remained muted, as soft steel demand and holiday-related slowdowns curbed trade interest.
With Eid holidays and monsoon disruptions looming, sentiment across the region stayed bearish, and most buyers opted to hold off on major purchases in anticipation of further price adjustments.
Market overview
India: India’s imported scrap market remained sluggish as mills avoided fresh bookings amid weak finished steel demand and the availability of cheaper alternatives like DRI and pellets. Unseasonal rainfall further dampened market sentiment, while mills operated under tight margins. Shredded scrap was offered at $370-375/t CFR, but bids hovered lower at $360-365/t, resulting in limited trades.
Despite stable yard prices, Indian buyers stayed on the sidelines, favouring HMS over shredded due to cost concerns. The market remained cautious, with no strong buying interest expected in the near term.
Pakistan: Pakistan’s imported scrap market remained sluggish amid high freight costs and lacklustre domestic steel demand. Shredded scrap offers from UK/European suppliers ranged between $380-388/t CFR Port Qasim, but buyer interest stayed muted, with bids clustering around $380-385/t. Minimal trades were reported. The UAE-origin HMS sheared and standard grades were offered at $370/t and $365/t CFR Qasim, respectively, but saw limited traction.
Despite low booking activity, major mills raised rebar prices by PKR 5,000/t on 23 May, citing rising input costs, freight hikes, and rupee depreciation. New rebar price levels reached PKR 237,000-239,000/t, though market sentiment remained cautious due to weak downstream demand and thin margins.
Bangladesh: Bangladesh’s imported scrap market remained under pressure amid financial constraints, LC issues, and a seasonal slowdown due to the approaching monsoon and Eid holidays. Mills stayed cautious, focusing on inventory management rather than fresh bookings. While some deals were reported for Australian and Singapore-origin HMS at $352-360/t CFR and shredded at $375-385/t CFR, overall deep-sea activity was limited. Record-high freight rates further curbed trade appetite.
Domestic scrap prices hovered at BDT 53,000-55,000/t ($435-452/t), with rebar at BDT 80,000-82,000/t in Dhaka and BDT 84,000-86,000/t in Chattogram.
Despite a slight uptick in imported prices, market sentiment remained soft, with expectations of a further slowdown as holidays approach.
Turkiye: The Turkish imported scrap market remained largely inactive with prices for bulk HMS 80:20 stable at $346/t CFR amid a looming Eid holiday lull. Buyer sentiment turned bearish due to weakening rebar demand in both domestic and export markets, though sellers held firm on offers, creating a market stalemate.
Traders reported limited bids and offers, especially for EU-origin scrap, with workable values showing a narrow gap. Mills expressed expectations of price drops but also faced the need to restock ahead of the June holiday period. Despite softening steel prices, both buyers and sellers appeared willing to wait, keeping the market in a holding pattern.
Price assessments
India: UK-origin shredded indicatives were assessed at $366/t CFR Nhava Sheva, down by $2/t compared to last close on Friday.
Pakistan: UK-origin shredded indicatives stood at $385/t CFR Qasim, unchanged compared to last close on Friday.
Bangladesh: UK-origin shredded prices were assessed at $377/t CFR Chattogram, unchanged compared to last close on Friday.
Turkiye: US-origin HMS (80:20) bulk scrap prices were assessed at $344/t CFR Turkiye, down by $3/t compared to last close on Friday.
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