South Asian imported scrap demand remains subdued; Turkish prices weaken further

• Pakistan: Rebar price cuts reinforce cautious scrap procurement
• Bangladesh: Higher power costs and taxes pressure scrap demand

South Asia: Imported ferrous scrap markets remained subdued on 6 July, as weak steel demand, poor import economics and cautious mill buying continued to weigh on sentiment. Meanwhile, Turkish deep-sea scrap prices stayed under pressure amid sluggish rebar demand and limited import bookings.

India: Imported ferrous scrap market remained largely unchanged, with buying activity limited to immediate requirements amid weak steel demand and poor import economics. A deal for 250 t of Africa-origin LMS bundles was concluded at $290/t CFR, while Africa-origin HMS bundles were offered at $310/t CFR against bids at $300/t CFR. UK-origin HMS was heard at around $330/t CFR, with UK-origin shredded scrap offers steady at $385-390/t CFR, reflecting the continued wide bid-offer gap and cautious buying sentiment.

Pakistan: Imported shredded scrap market remained subdued, with buying limited to immediate requirements as weak steel demand continued to weigh on sentiment. Buyers indicated workable levels of around $395/t CFR Qasim against offers of $400/t CFR for UK-origin shredded scrap. Adding to the bearish outlook, two major domestic steelmakers reduced ex-factory rebar prices by around PKR 5,000/t ($18/t) to PKR 244,000-247,000/t ($877-888/t), reflecting sluggish construction demand and reinforcing cautious scrap procurement.

Bangladesh: Imported ferrous scrap prices remained under pressure, with buyers maintaining a wait-and-watch approach amid weak steel demand and falling global scrap prices. UK-origin shredded scrap was reported at $400/t CFR Bangladesh, while workable levels for HMS 80:20 were heard at around $365/t CFR. Meanwhile, higher electricity tariffs and revised tax measures continued to raise steel production costs, keeping mills cautious on fresh scrap bookings.

Turkiye: Deep-sea imported ferrous scrap prices in Turkiye remained under pressure on 6 July, with Europe-origin HMS 80:20 workable at $365-368/t CFR and US-origin HMS 80:20 at $375-378/t CFR. Prices were down around $10/t w-o-w as Turkish mills continued to resist higher offers amid weak buying interest and limited US-origin deal activity.

Downstream sentiment remained weak, with Marmara rebar offers at around $585/t FOB. Weak finished steel demand and poor mill margins continued to limit fresh scrap bookings.