SteelMint

South Asia: Demand weakens in the subcontinent while Turkish scrap prices rise

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by

Adarsh Ramteke
in
  • India: Demand remained sluggish, limited momentum before Christmas
  • Pakistan: Mills at low capacity, activity driven by costs

South Asian imported scrap markets stayed sluggish on 26 Nov, with limited demand in India, Pakistan, and Bangladesh. Meanwhile, Turkish markets recorded rising deepsea scrap prices supported by stronger demand for rebar and higher buying interest from mill.

India: India’s ferrous scrap market remained sluggish as strong Turkish purchases absorbed much of the available containerised material, leaving little momentum locally. Market participants noted that demand is unlikely to pick up before Christmas. The widening price gap between India and Turkiye is a growing concern, with mills warning that suppliers from the UK and the US  may increasingly prefer Turkiye, Pakistan, or Bangladesh over India for better prices.

EU shredded scrap was assessed at between $345-350/t CFR Nhava Sheva, Hong Kong Plate and Structure (PNS) scrap at about $354-355/t, and Malaysia busheling at between $360-362/t CFR Chennai. Buyers remained cautious about securing Heavy Melting Steel (HMS) at current Indian price levels, given bulk bookings from Turkiye at between $360-365/t. UK HMS indications were reported at between $320-325/t CFR Chennai (2-3% impurities), between $315-318/t CFR Nhava Sheva, and between $320-325/t for 1-2% impurity lots.

Pakistan: Imported scrap markets in Pakistan remained steady, though sentiment was mixed as mill operations ran at just 35-40 percent capacity, with utilisation rates expected to fall further due to the onset of winter. Activity stayed limited, driven mainly by cost-covering needs. European and UK-origin shredded scrap was assessed at $355/t CFR Qasim, with HMS from the UAE trading around $335-340/t CFR.

Bangladesh: Imported scrap markets in Bangladesh stayed largely inactive as political uncertainty and the upcoming elections weighed on demand. Despite the onset of the construction season, buyers and mills remained cautious, keeping buying activity stalled. Recent bulk deals for HMS from the US were heard at between $355-360/t to Chattogram. While notional levels post-Turkiye transactions are above $365/t, though actual trades remain limited.

Turkiye: Deepsea scrap prices climbed on 25 Nov supported by stronger demand for rebar and improving mill inquiries. HMS 80:20 traded at between $360-364/t CFR, while EU-origin scrap hovered between $356-358/t. Supply tightened as shortsea sellers shifted to higher-paying local mills. With limited local scrap and steady demand, mills relied on deepsea cargoes, sustaining the upward trend.

India: Demand remained sluggish, limited momentum before Christmas Pakistan: Mills at low capacity, activity driven by costs South Asian imported scrap markets stayed sluggish on 26 Nov, with limited demand in India, Pakistan, and Bangladesh. Meanwhile, Turkish markets recorded rising deepsea scrap prices supported by stronger demand for rebar and higher buying interest from mill. India: India's ferrous scrap market remained sluggish as strong Turkish purchases absorbed much of the available containerised material, leaving little momentum locally. Market participants noted that demand is unlikely to pick up before Christmas. The widening price gap between India and Turkiye is a growing concern, with mills warning that suppliers from the UK and the US  may increasingly prefer Turkiye, Pakistan, or Bangladesh over India for better prices. EU shredded scrap was assessed at between $345-350/t CFR Nhava Sheva, Hong Kong Plate and Structure (PNS) scrap at about $354-355/t, and Malaysia busheling at between $360-362/t CFR Chennai. Buyers remained cautious about securing Heavy Melting Steel (HMS) at current Indian price levels, given bulk bookings from Turkiye at between $360-365/t. UK HMS indications were reported at between $320-325/t CFR Chennai (2-3% impurities), between $315-318/t CFR Nhava Sheva, and between $320-325/t for 1-2% impurity lots. Pakistan: Imported scrap markets in Pakistan remained steady, though sentiment was mixed as mill operations ran at just 35-40 percent capacity, with utilisation rates expected to fall further due to the onset of winter. Activity stayed limited, driven mainly by cost-covering needs. European and UK-origin shredded scrap was assessed at $355/t CFR Qasim, with HMS from the UAE trading around $335-340/t CFR. Bangladesh: Imported scrap markets in Bangladesh stayed largely inactive as political uncertainty and the upcoming elections weighed on demand. Despite the onset of the construction season, buyers and mills remained cautious, keeping buying activity stalled. Recent bulk deals for HMS from the US were heard at between $355-360/t to Chattogram. While notional levels post-Turkiye transactions are above $365/t, though actual trades remain limited. Turkiye: Deepsea scrap prices climbed on 25 Nov supported by stronger demand for rebar and improving mill inquiries. HMS 80:20 traded at between $360-364/t CFR, while EU-origin scrap hovered between $356-358/t. Supply tightened as shortsea sellers shifted to higher-paying local mills. With limited local scrap and steady demand, mills relied on deepsea cargoes, sustaining the upward trend.

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