- Indian buyers resist higher offers amid freight uncertainty
- Festival slowdown and weak rupee keep demand cautious
South Asia’s imported scrap sentiment stayed cautious to firm on 5 March as freight volatility, Middle East disruptions and currency pressure complicated price discovery. India remained price-sensitive, Bangladesh saw stronger offers, Pakistan faced supply disruptions, while Turkiye trading stayed subdued amid rising freight.
India: Imported scrap sentiment in India remained cautious as freight volatility, currency uncertainty and the ongoing festive period slowed market activity and complicated price discovery. UK-origin HMS was earlier quoted around $348-350/t, with workable levels near $350-352/t under normal conditions.
However, freight circulars suggesting increases of $1,500-2,000 per container could lift landed costs by $60-80/t, making it difficult for traders to finalise firm quotations. Suppliers were heard unwilling to offer HMS below $360/t and shredded below $380/t, as cargoes may reroute via the Cape of Good Hope.
Meanwhile, buyers at Mundra and Nhava Sheva kept bids below $350/t for HMS and $370/t for shredded, reflecting cautious procurement. In northern India, hand-loaded HMS buyers in Punjab were willing to pay $360-365/t, though suppliers held back amid uncertainty. Freight rates from Europe have not yet been revised by CMA CGM and Hapag-Lloyd, though expectations of the rupee weakening toward INR 95/$ may influence pricing.
Bangladesh: Imported scrap sentiment in Bangladesh strengthened as suppliers raised offers and buyers signalled workable levels near $380/t ahead of expected April container shipment increases. Malaysian PNS offered around $388-390/t CFR Chattogram, while Australian shredded was quoted near $386/t, with indications heard at $385/t for shredded and above $360/t for HMS. Meanwhile, rerollable PNS from Hong Kong was heard around $430/t and from Singapore near $450/t, reflecting firmer sentiment in the containerised scrap segment.
Pakistan: The imported scrap market remained unsettled d-o-d as Middle East disruptions tightened supply and halted UAE shipments, while European cargoes faced delays. War surcharges and rising freight costs added uncertainty, with UK/EU-origin shredded indications heard at $380-385/t CFR amid limited fresh offers.
Turkiye: Deep-sea scrap trading into Turkiye remained mostly quiet until fresh deals surfaced recently, with many participants staying on the sidelines awaiting clearer direction. Market participants noted that, “Both buyers and sellers are attempting to influence sentiment, with sellers signalling higher levels while mills try to talk the market down”.
The current workable level for good-quality HMS 80:20 was heard around $370-375/t CFR, though rising freight-up about $15/t from the US and $10/t from the Baltics-may push costs higher as exporters remain unwilling to absorb the increase.
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