- India: African HMS offers support firm market sentiment
- Bangladesh: Latin American HMS bookings support firm sentiment
South Asia imported scrap markets remained firm on 16 September , with India and Pakistan seeing selective buying, Bangladesh holding elevated levels, while Türkiye strengthened sharply as scrap prices approached the $400/t mark.
India: India’s imported scrap market remained firm d-o-d, with HMS 80:20 offers from Somalia at around $385/t CFR. A Costa Rica-origin HMS 60:40 cargo was booked at $335/t CFR Chennai for November arrival. Australian HMS offers stood at $365-370/t, while shredded scrap was offered at $390-400/t.
African HMS 80:20 was offered at $375-380/t CFR Mundra. However, buying interest remained selective, with some mills continuing to meet requirements through domestic scrap. Uk origin Shredded scrap was offered at $410/t, while prices may remain stable to slightly lower in the near term as the festive season approaches.
Pakistan: Imported scrap market remained firm, with a EU-origin shredded scrap reportedly sold at $419/t CFR Qasim. However, the market remained divided following the SRO, with mills using over 70% imported scrap benefiting from an additional electricity-linked sales tax of PKR 5, while those below the threshold face PKR 30.
The disparity has created uneven operating economics, while most mills remain shut down, limiting overall scrap demand. Separately, a Brazil-origin sheared HMS was purchased at $393/t CFR Qasim, indicating continued buying interest despite subdued mill activity.
Bangladesh:Imported scrap market remained firm at elevated levels, with a Latin American high-grade HMS 1 booked at $375/t CFR Chattogram, while Malaysian HMS 90:10 and Philippines PNS traded at $380/t and $378/t, respectively. UK/EU shredded scrap was offered around $400/t CFR Chattogram, while HMS 80:20 stood at $370-375/t; however, higher-priced cargoes faced resistance, with buyers targeting around $395/t.
Turkiye: Deep-sea imported scrap market strengthened sharply d-o-d, with US-origin HMS 85:15 from Sims reportedly sold at $400/t CFR Türkiye. This puts the equivalent HMS 80:20 level at around $397.5/t, bringing Turkish buying levels closer to the $400/t mark.
The sharp rise in Turkish scrap prices is narrowing the premium previously commanded by US shredded scrap, potentially bringing US shredded closer to Turkish scrap levels for October. However, US mills are expected to resist higher scrap prices amid seasonal outages, with October prices likely to remain broadly stable as higher scrap demand from stronger crude steel production could be offset by planned mill shutdowns.
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