- India: subdued scrap demand, rising dollar pressures
- Turkiye: deep-sea scrap firm, cautious mill buying
South Asia’s imported scrap markets in India, Pakistan, and Bangladesh remained subdued amid weak steel demand, currency and political pressures on 19 December. Meanwhile, Turkiye’s deep-sea prices stayed firm on seasonal supply tightness despite softer rebar and cautious mill buying.
India: Imported scrap demand in India remained subdued, with the market largely at a standstill on Friday. Finished steel prices have been falling through December, and while marginal improvement was seen over the past two days, overall demand remains weak. A weakening rupee has further pressured buying sentiment, while some distress sales were reported. Supplier activity has thinned due to year-end holidays, and strong domestic markets elsewhere have reduced sellers’ interest in India.
The bid-offer gap remains wide, with UK ex-yard HMS prices near $340 against bids around $325. Cheap sponge iron has encouraged mills, particularly in southern India, to maximize sponge usage up to 85% as a survival strategy. Stable iron ore prices have limited upside in local scrap, while northern mills continue to hold ample scrap inventories, further capping demand.
Pakistan: Imported scrap market remained subdued, despite a slight uptick in offers. Shredded scrap from South Africa was reportedly sold at $353-355/t CFR, while Europe/UK shredded scrap offers were heard at $354-359/t CFR Qasim, although trading volumes continued to stay light.
Bangladesh: The imported scrap market in Bangladesh remained subdued day on day, with Hong Kong oversized PNS heard at $363/t, Hong Kong shredded at $353/t, and Australian shredded at $350/t. Market sentiment stayed weak amid local unrest ahead of elections and political uncertainty, which has led to the shutdown of several Dhaka-based mills with diversified business exposure.
Turkiye: Deep-sea imported scrap prices held stable d-o-d, supported by seasonal supply tightness and steady demand expectations. Mills were said to need around five to seven cargoes for January loading, while Eurozone collection costs of Eur 265-270/t kept sellers firm. US suppliers continued to resist bids below $370/t.
Market activity remained cautious as rebar offers softened by around $5/t d-o-d, limiting mills’ appetite at current scrap levels. Some participants suggested mills were deliberately slowing purchases to manage prices, even as sellers stayed active.
Leave a Reply