- Indian buyers adopting wait-and-watch approach
- Supply tightness outweighing consumption trends
Imported scrap markets across South Asia remained firm on 2 April, with offers rising amid tight supply and freight pressures. However, buying stayed cautious, widening the bid-offer gap to $15-25/t. India and Pakistan saw limited trades at higher levels, while Bangladesh prices moved up on restricted availability, showing a seller-driven market with restrained demand.
India: Imported scrap offers in India remained elevated,with Australia-origin HMS heard at $365-370/t and shredded at $380-385/t CFR Chennai. UK-origin HMS was indicated at $385-390/t CFR Mundra/Nhava Sheva, while workable levels remained lower at $370-375/t.
A trader source noted that sellers are no longer willing to offer HMS at $370/t, with current offers rising to $385-388/t and continuing to firm. However, buyers remain resistant, struggling to align with higher freight and cost realities. As a result, the bid-offer gap has widened significantly, now standing at around $22-25/t for shredded and $15-16/t for HMS.
EU-origin shredded was heard at $410-415/t CFR, remaining largely unworkable for Indian buyers amid cautious sentiment and volatile container freight rates. Market participants noted that the shredded-HMS spread has widened further, increasing from $18-20/t to around $25-30/t.
Pakistan: UK-origin shredded was heard at $425/t CFR Qasim, with PNS offers around $435/t. However, no major trades were concluded at these levels. A limited deal for 500 t of EU-origin shredded was reported at $418/t CFR Qasim, while fresh offers from the same supplier were heard in the range of $422-425/t.
Bangladesh: Imported scrap prices in Bangladesh moved higher, with UK-origin shredded heard at $405-410/t CFR and Australia-origin material at $412-415/t. Market sentiment remained firm amid limited availability, with suppliers holding back offers expecting further gains.
Oceania/East Asia-origin indicative prices were heard at $385/t for HMS 80:20, $395/t for HMS 90:10, $410-415/t for shredded, and $422-425/t for PNS CFR Chattogram.
Market participants noted a widening bid-offer gap, currently at around $22-25+/t for shredded and $15-16/t for HMS, reflecting strong seller expectations against cautious buyer sentiment.
Turkiye: Deep-sea scrap prices remained stable firm on 2 April, with US-origin material heard in the range of $403-405/t CFR, indicating a stable trend d-o-d. Market activity remained subdued following stronger bookings last week, though overall sentiment stayed steady.
Tradable values for US-origin HMS 80:20 were reported between $400-405/t CFR. Market participants continued to track rising semi-finished steel import prices, which supported scrap demand. However, higher billet, energy, and production costs continued to pressure Turkish mills’ margins.
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