- Pakistan mills operate at lower capacity, demand muted
- Turkish market stable amid limited deals, cautious buying
South Asia’s imported scrap markets remained largely subdued, weighed down by seasonal disruptions, weak steel demand, and cautious buying sentiment across key regions.
In India, monsoon rains and competitive domestic alternatives curbed import appetite, while Pakistan’s market slowed further with Muharram observances and mills operating at reduced capacity. Bangladesh saw limited activity as mills shifted focus to forward bookings amid construction delays.
Meanwhile, the Turkish market remained range-bound, offering little support to South Asian buyers already grappling with soft finished steel sales and uncertain economic cues.
Across the board, market participants maintained a wait-and-watch approach amid tight margins and unclear demand recovery.
Market overview
India: India’s imported scrap market remained sluggish amid weak steel demand, ongoing monsoon disruptions, and the availability of cheaper domestic alternatives such as sponge iron and local scrap. Shredded offers hovered at $360-365/t CFR Nhava Sheva, but most bids remained lower at $355-360/t, with no confirmed deals heard.
Traders said inquiries were limited, and both buyers and sellers stayed on the sidelines, citing dull finished steel sales and muted construction activity. Turkiye’s rising scrap prices have also complicated procurement, while Iranian HBI shipments faced delays due to geo-political issues.
Market participants expect the subdued trend to continue through July unless iron ore prices or finished steel demand show a notable recovery.
Pakistan: Pakistan’s imported scrap market remained quiet at the start of the week, with activity slowing further as Muharram observances began and seasonal rains continued to hamper logistics and construction. Mills were reportedly operating at just 35-40% capacity, with weak downstream demand curbing interest in fresh bookings.
A few UK/EU origin containerised shredded deals were heard at $372-375/t CFR Qasim, while UAE-origin shredded was offered higher at $382-385/t. HMS 80:20 from the UAE hovered at $360-365/t CFR.
Market participants said traders were digesting changes in the FY26 budget: the Additional Customs Duty (ACD) on shredded and bundled scrap was reduced by 2%, and re-melting scrap saw full relief with customs duty slashed from 3% to nil and ACD removed. However, the customs duty on re-rollable scrap was raised from 2% to 5%, weighing on sentiment. Buyers remained cautious, awaiting post-holiday clarity on demand and price direction.
Bangladesh: Bangladesh’s imported scrap market stayed sluggish due to monsoon-driven construction slowdowns, seasonal lull, and cautious buying sentiment. Mills continued to run below capacity, with focus shifting to cargoes for August-September instead of immediate arrivals.
Containerised shredded offers hovered at $370-375/t CFR Chattogram, but bids remained limited to $360-365/t. While HMS 80:20 was heard at around $350-355/t CFR.
Booking activity was minimal, with traders citing stagnant rebar demand and rising cost pressures following recent budget and tax adjustments. The market tone remained soft, with buyers anticipating possible price corrections if construction activity doesn’t recover soon.
Turkiye: The Turkish imported scrap market remained largely stable, with bulk HMS 80:20 prices assessed at $345/t CFR. Trading was muted as weak rebar demand kept buyers on the sidelines, and no firm bids or offers were reported. A few previously concluded deals surfaced, showing purchase levels between $337-342/t CFR, while sellers aimed higher amid a stronger euro. Despite available volumes for late-July shipment, most mills had already secured their requirements, leaving limited room for fresh bookings. Exporters maintained offer levels at $340-350/t CFR, but buyers sought at least $5/t lower, keeping the market in a wait-and-watch mode.
Price assessments
India: UK-origin shredded indicatives were assessed at $360/t CFR Nhava Sheva, unchanged d-o-d.
Pakistan: UK-origin shredded indicatives stood at $372/t CFR Qasim, down by $1/t d-o-d.
Bangladesh: UK-origin shredded prices were assessed stable d-o-d at $368/t CFR Chattogram.
Turkiye: US-origin HMS (80:20) bulk scrap prices were assessed at $345/t CFR Turkiye, unchanged d-o-d.
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