- Political issues, dollar scarcity curbs Bangladeshi demand
- Rising freights from US, soft rebar prices keep Turkiye wary
South Asia’s imported scrap market stayed subdued as weak steel demand, rains, festive holidays, a dollar shortage, and political uncertainty curbed activity, with Türkiye, Japan, China, and UAE markets also reflecting cautious sentiment.
Turkiye: Turkiye’s imported scrap market held mostly steady this week, with US/Baltic-origin HMS 80:20 at $340-345/t CFR and EU-origin at $332-338/t CFR. Trade activity stayed muted as weak finished steel demand and cautious mill buying limited imports.
Sentiment was further pressured by rising US-Turkiye freight costs and softening rebar prices, keeping buyers hesitant. Some sellers also chose to divert cargoes into European markets to avoid margin pressure.
India: India’s imported ferrous scrap market stayed tepid throughout the week, as a strong dollar, weak sentiment, and heavy monsoon rains weighed on activity. Shredded offers held near $365/t CFR, while HMS 80:20 ranged within $325-345/t CFR, though bids stayed lower. Busheling above $375/t met resistance, and turnings hovered at $300-315/t CFR.
Floods in Ludhiana and festive slowdowns in Maharashtra further curbed demand, leaving both imported and domestic scrap trades muted. Buyers remained cautious amid weak finished steel offtake, with restocking expected to stay limited in the near term.
Around 4,000-5,000 t of imported scrap were booked in the last seven days, including 2,000-2,500 t HMS 80:20 at $328-340/t, followed by shredded and busheling.
Pakistan: The imported scrap market remained under pressure this week, with shredded slipping to $372/t CFR Qasim from $374/t the previous week. Prolonged rains disrupted operations, keeping mills at 30-40% of their capacity, while weak finished steel demand and high inventories weighed heavily on sentiment.
Shredded offers hovered at $370-375/t CFR, with trades leaning lower. Floods and Eid holidays further curbed activity, keeping restocking limited and market sentiment cautious.
Bangladesh: The imported scrap market remained under pressure this week, with political uncertainty and dollar scarcity curbing demand. Wide bid-offer gaps kept activity limited, as Australian shredded was repeatedly offered at $380/t CFR Chattogram against bids of $370/t.
A bulk Australian cargo was booked at $345-355/t CFR across HMS, shredded, and bonus grades, while UK-origin shredded stayed stable at $374/t CFR, with local mills cautious amid subdued buying.
Japan: H2 scrap export prices fell JPY 500/t ($3/t) w-o-w to JPY 41,500/t ($280/t) FOB Tokyo Bay, pressured by moderate demand, currency fluctuations, and higher October freights, while weak sentiment persisted amid maintenance at Kansai mills.
China: China’s Shagang Steel cut scrap procurement prices by RMB 50/t ($7/t) on 2 September, its first cut this month, with HMS (6-10 mm) now at RMB 2,410/t ($337/t).
UAE: Domestic scrap prices softened as Pakistan flooding slowed exports, with processed HMS at AED 1,221/t ($332/t). Middle East exports held at $365-370/t CFR, while wire rod prices firmed to $570-580/t exw.
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