- India, Pakistan see active buying amid firm demand
- Turkiye stable as buyers anticipate near-term gains
South Asia: Imported scrap markets remained firm on 8 September, with India and Pakistan seeing active buying, Bangladesh holding elevated offers, while Turkiye remained stable amid healthy demand and expectations of near-term price gains.
India: Imported containerised scrap market remained firm, supported by restocking demand as the monsoon draws to a close and strong sales of finished and semi-finished steel products. A New Zealand-origin HMS 80:20 was heard sold at $365/t CFR Chennai, while indicative levels for UK-origin HMS with 1-2% impurities were $360-365/t CFR Chennai.
Brazilian HMS with around 4% impurities was also heard, with buyers targeting $350-355/t and trade potentially workable at $358-360/t. No firm offers, bids or trades for imported containerised shredded scrap were reported during the day.
Pakistan: Imported scrap market remained firm, with a UK-origin shredded scrap sold at $420/t CFR Qasim. Malaysian suppliers were not offering material due to high freight costs of around $1,800 or more, limiting availability from the origin. Current shredded scrap offers were heard at $415-420/t CFR Qasim.
However, the market remained disturbed following recent tax changes, with participants staying in a wait-and-watch mode while seeking greater clarity on the revised provisions. PSIC-related issues also continued to disrupt shipments, with some suppliers halting loadings until there is greater clarity on the requirements. A transporters’ strike from August 7-17 further disrupted deliveries and hampered scrap movement.
Bangladesh: Imported scrap prices held at elevated levels, as UK-origin shredded scrap was offered at $410-412/t CFR and HMS 80:20 at $370-375/t. With Indian demand remaining subdued, sellers increasingly turned to other regional markets like Pakistan and Bangladesh.
Turkiye: Deep-sea imported scrap market remained stable d-o-d on 8 September, with tradable values for US or premium-origin HMS 80:20 heard at $380-381/t CFR. Buyers remained cautious at current levels, while domestic scrap prices edged higher, supported by strengthening rebar fundamentals and improved demand sentiment.
Market participants expect prices to gain momentum in the near term as scrap demand remains healthy and limited Black Sea material availability supports replacement costs. A mill source expects US-origin scrap to reach $383-385/t CFR. Meanwhile, Russian billet offers at $505-510/t CFR against bids of $485-490/t continued to provide an alternative feedstock, limiting the scope for aggressive scrap buying.
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