South Asia: Imported ferrous scrap trading activity diverges; Turkish prices strengthen on tight supply

• Pakistani prices remain elevated on tight supply, freight costs
• Bangladeshi buyers wait for price drop before making fresh bookings

South Asian imported ferrous scrap markets showed mixed momentum d-o-d on 28 July, with subdued buying in India and Bangladesh amid weak demand, while Pakistan maintained firm prices. Turkish prices extended gains, supported by tight scrap availability, active mill demand, and elevated freight costs.

India: Imported ferrous scrap trading in India remained subdued as weak finished steel demand, the ongoing monsoon season, and poor import viability continued to weigh on buying activity. Africa-origin LMS bundles were heard at $290/t CFR and HMS bundles at $305/t CFR, while UK-origin HMS was offered at $330/t CFR and shredded scrap at $392-396/t CFR, with limited buying interest due to uncompetitive import prices.

Pakistan: Imported ferrous scrap market remained firm, with prices continuing at elevated levels amid tight availability of premium UK-origin cargoes and sustained freight costs. Recent deals were concluded for UK-origin shredded scrap at $416/t CFR Qasim.

Market participants reported fresh UK shredded offers at $420-425/t CFR Qasim against bids of $415-417/t CFR, reflecting a widening bid-offer gap. While some buyers expect prices to soften if oil prices and geopolitical tensions ease, uncertainty over the Middle East situation continued to support cautious buying and keep imported scrap prices on the higher side.

Bangladesh: Imported ferrous scrap trading activity in Bangladesh remained subdued as buyers largely stayed on the sidelines, awaiting a correction in prices before making fresh bookings. However, a few transactions were concluded, including a Chile-origin HMS 90:10 at $372/t CFR Chattogram and an Australia/Canada-origin HMS 90:10 at $375/t CFR Chattogram, with prevailing market indications for HMS 90:10 remaining at around $375/t CFR.

Turkiye: Turkish imported deep-sea scrap prices extended their upward trend at the start of the week as constrained scrap availability and elevated freight costs continued to lift offers. Recent deals, including Baltic-origin HMS 80:20 at $376-377/t CFR and a Russia-origin 95:5 cargo to Kardemir at $397/t CFR, reinforced the bullish sentiment, with market participants expecting US-origin cargoes to command above $380/t CFR in the next round of bookings.

Market sentiment remained firm as Turkish mills continued booking late August and September cargoes. Tight supply and sustained mill demand supported higher price indications despite cautious buying at elevated levels.