- India’s scrap trade slows down on wide bid-offer gaps
- Bangladesh market quiet post-Eid due to tight liquidity
South Asia’s imported scrap markets stayed subdued amid weak steel demand, limited buying interest, and declining prices. India faced wide bid-offer gaps; Pakistan saw slow mill inquiries due to reduced production; and Bangladesh remained quiet post-Eid with letter of credit (LC) issues. Meanwhile, Turkiye’s market was steady, though buyers resisted high offers amid slow finished sales.
Market overview
India: The imported scrap market in India remained under pressure amid weak demand and a widening bid-offer gap. Mills bid well below supplier expectations, limiting trade opportunities.
HMS offers were heard at $348-350/t CFR, but buyer indications remained lower at $338-340/t, making negotiations difficult. Shredded saw minimal interest, with market levels slipping to around $360/t CFR, down from $375/t just a month ago.
As per a major trader, expectations of a Q2 recovery have dimmed, with sentiment turning more cautious. Bulk scrap activity also remained muted, with no significant offers heard from the US or Australia.
Pakistan: Pakistan’s imported scrap market remained sluggish, with limited inquiries amid reduced production rates, with mills currently operating at just 30-35% of their capacity.
EU-origin shredded offers stood at $370-372/t CFR Qasim, while the same variant of UAE origin was heard higher at $376-378/t CFR. However, buying interest was weak due to falling semi-finished and finished steel prices.
Billet prices dropped to PKR 198,000-200,000/t ($699-706/t), while rebar was quoted at PKR 235,000-236,000/t ($830-833/t) on paper, with actual tradable levels at around PKR 232,000-233,000/t ($819-823/t) exw. Sentiment remains bearish as mills adopt a wait-and-watch approach.
Bangladesh: The imported scrap market remained largely quiet amid Eid holidays, persistent LC challenges, and tight liquidity. Containerised offers for Australian HMS 80:20 were heard at $350-352/t CFR Chattogram, while bulk inquiries by local mills for Australian HMS mix hovered at around $355-360/t CFR. Shredded offers stood at $373-374/t CFR, and HMS 80:20 was quoted at $360-362/t CFR, though limited containerised bookings were reported.
Turkiye: Imported deep-sea ferrous scrap prices in Turkiye remained largely range-bound, with HMS 80:20 at $338/t CFR, unchanged d-o-d. Sellers maintained firm expectations on the back of anticipated restocking, but buyers pushed back, citing weak finished steel sales across rebars, hot-rolled coils (HRCs), and wire rods.
Indicative tradable levels for US/Baltic-origin HMS 80:20 were heard between $337-341/t CFR. Mills showed resistance above $337/t, and some reportedly scouted for cheaper billet options from Asia instead.
A Baltic recycler noted difficulty in justifying higher offers, suggesting limited room for upward movement amid subdued scrap demand. Mills are expected to adopt a wait-and-watch approach in the near term.
Price assessments
India: UK-origin shredded indicatives were assessed at $360/t CFR Nhava Sheva, down by $1/t compared to the last closing day (Friday).
Pakistan: UK-origin shredded indicatives stood at $370/t CFR Qasim, down by $1/t compared to the last closing day.
Bangladesh: UK-origin shredded prices were assessed at $372/t CFR Chattogram, down by $2/t compared to the last closing day (Friday).
Turkiye: US-origin HMS (80:20) bulk scrap prices were assessed at $338/t CFR Turkiye, stable compared to the last closing day.
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