South Asia: Imported scrap markets hold firm; Pakistan, Bangladesh show sustained buying interest

• Indian market weak amid soft steel demand, lower DRI prices
• Demand saturation in Turkiye signals limited room for further gains

South Asian imported scrap markets remained largely firm on 22 September, with Bangladesh and Pakistan seeing steady-to-firm buying activity, while India remained subdued amid limited buyer interest. Turkish prices continued rising, although domestic demand saturation and limited export demand may cap further gains.

India: Imported scrap market remained subdued d-o-d, with HMS 80:20 offers heard at $350-360/t CFR and HMS 90:10 around $380/t, while buyers showed limited interest at these levels. Shredded scrap offers were heard at $420-425/t CFR. A cargo of European-origin HMS 80:20 was booked at $375/t CFR Mundra, while UK-origin shredded scrap was reportedly sold at $415/t CFR Mundra/Nhava Sheva. Australian shredded scrap was offered at $410/t and UK HMS at $370/t CFR Mundra.

The containerised shredded scrap market was steady but weak amid softer domestic downstream and DRI prices, with no firm offers, bids or trades heard during the day. However, participants expect scrap shortages and firm domestic finished-steel sales to support import demand in the coming weeks, while elevated freight costs and stronger prices in other markets are likely to keep India-bound offers supported.

Pakistan: The imported scrap market remained firm, with UK-origin shredded scrap bookings reported at $417-418/t CFR Qasim, including a cargo at $417/t and another booking at $418/t. A lot of UK-origin nut and bolt scrap was booked at around $430/t CFR Qasim. Shredded scrap offers are holding at $418-420/t CFR Qasim, while sellers are offering around $423/t and buyers are indicating bids of $418-419/t.

Bangladesh: Imported scrap prices remained firm in Bangladesh, with Singapore-origin PNS offered at $420/t CFR Chattogram, while Australian/New Zealand shredded scrap was booked at $400-410/t. HMS 90:10 traded at $385-390/t. Singaporean and Malaysian cargoes remained relatively expensive, keeping buyers cautious.

Turkiye: Deep-sea scrap prices continued to rise, with US-origin HMS 80:20 heard at around $405-408/t CFR Turkiye, while shredded and bonus scrap were assessed at $422/t. However, market participants see limited room for further gains as domestic rebar demand approaches saturation, with top domestic ex-works prices reaching around $655/t.

With mills having largely utilised their EU export quotas and awaiting fresh allocations for October and January 2027, both domestic and export demand remains insufficient to support further increases. Market participants expect prices to slow after potentially touching $410/t for US HMS 80:20, with a subsequent correction possible as buying interest weakens.