South Asia scrap markets stay slow; Turkiye cautious on bookings

• Bangladesh mills faced pressure from rising utility costs
• Turkiye mills avoided aggressive bookings during holidays

South Asian imported scrap markets remained largely weak on 21 May amid sluggish steel demand, weak mill margins, and cautious buying sentiment, while Turkiye’s deep-sea scrap market softened slightly as mills delayed aggressive bookings during the holiday slowdown.

India: India’s imported scrap market remained weak d-o-d on sluggish downstream steel demand and poor import viability, with buyers showing limited interest at prevailing offer levels. Australia-origin HMS 80:20 offers were heard around $365/t CFR Chennai, while shredded scrap offers stood near $380/t CFR.

UK-origin busheling offers were heard at $425-430/t CFR, HMS bundle offers near $385/t CFR, and US-origin HMS 80:20 offers around $380/t CFR Chennai. Meanwhile, West Africa-origin HMS 80:20 offers were heard at $350/t CFR Nhava Sheva and $355/t CFR Chennai, although market participants noted an absence of active buying interest at these levels.

Pakistan: Pakistan’s imported scrap market remained slow d-o-d, with weak buying sentiment continuing to limit fresh bookings. UK-origin shredded scrap offers were largely heard at around $423/t CFR Qasim, while market participants reported deals for UK-origin PNS at $440/t CFR Qasim, shredded scrap at $423/t CFR Qasim, and skulls at $333/t CFR Qasim.

Bangladesh: Bangladesh’s imported scrap market remained subdued amid weak mill margins, rising electricity and gas costs, and slower construction activity, which continued limiting fresh procurement and reducing steel production. Market participants noted that imported scrap buying remained limited due to LC constraints and elevated production costs. Meanwhile, UK-origin shredded scrap offers were heard at $415-416/t CFR, while HMS 80:20 offers stood around $389/t CFR Bangladesh.

Turkiye: Deep-sea imported scrap market softened slightly d-o-d on 21 May, with HMS 80:20 prices assessed around $411/t CFR Turkiye, down nearly $1/t amid weak mill participation and slower activity during the public holiday period. A Europe origin deal for HMS 80:20 was also heard concluded at around $406/t CFR.

Turkish mills largely avoided aggressive bookings amid weak steel demand and pressured margins, although market participants expect buying activity to gradually resume after the holidays as mills still require June-shipment cargoes.