South Asia: Imported scrap trade remains lacklustre amid weak steel demand

• Indian buyers continue to prefer domestic scrap for cost efficiency
• Wide bid-offer gaps, higher freights limit demand from Bangladesh

South Asian imported ferrous scrap buying remained sluggish on 13 July as mills across the region maintained cautious procurement amid weak steel demand. Rising freight costs and supply chain concerns continued to dampen trading activity.

India: Imported ferrous scrap trading remained sluggish as mills continued to prefer domestic material over imports for cost efficiency amid weak steel demand. No bulk cargoes were booked, while higher freights and vessel constraints from the US and Middle East, linked to the Strait of Hormuz situation, further dampened buying sentiment.

Deals for turnings scrap were heard at $297-309/t CFR Chennai from Israel, Europe, and Malaysia. UK-origin HMS was offered at around $330/t CFR, while UK-origin shredded scrap was indicated at $375-385/t CFR, with buying interest remaining limited.

Pakistan: Imported shredded scrap trading remained subdued as weak steel demand kept mills on cautious, need-based procurement. Shredded scrap was heard at around $390/t CFR Qasim, while offers remained at $390-395/t CFR, limiting fresh booking activity.

Bangladesh: Imported ferrous scrap trading remained subdued as mills maintained cautious procurement despite expectations of firmer prices on rising freight costs. Singapore-origin PNS was offered at $415-420/t CFR Chattogram against bids near $390/t, while increasing container freights to around $1,200-1,400/20ft, with potential to reach $1,500/20ft, continued to support sellers’ sentiment amid tight container availability.

Turkiye: Deep-sea imported ferrous scrap market remained largely stable on 13 July, with trading activity subdued as mills maintained cautious buying amid weak finished steel demand. Tradable values for US-origin HMS 80:20 were heard at $370-372/t CFR, while buying interest remained limited.

A deal for Europe-origin HMS 80:20 was heard concluded at $363-365/t CFR, reflecting continued pressure on non-premium cargoes. Market participants also noted that declining domestic scrap prices across Europe, including a EUR 25/t fall in Italy over the past month, continued to weigh on export offer levels.