South Asian scrap markets stay mixed; India buying remains subdued

• India: Need-based buying keeps import activity subdued
• Turkiye: High freight limits further scrap price gains

South Asia imported scrap markets remained mixed on 25 September, with India subdued on need-based buying, Pakistan rangebound, Bangladesh supported by firm bulk offers, while Türkiye stayed stable as high freight and rising collection costs limited further gains.

India: Imported scrap market remained subdued, with mills restricting procurement to need-based quantities amid weak domestic demand. Containerised HMS prices have corrected from around $380/t to $355/t, while bulk HMS offers have risen to $410/t, supported by stronger demand from Southeast Asia and Bangladesh and higher bunker costs.

A recent deal involved 500 t of HMS 60:40 at $332/t CFR Chennai, with delivery expected within two months. UK HMS was offered at $365-370/t and shredded at $410-412/t, while African HMS was indicated at $372-373/t.

Pakistan: Imported scrap market remained rangebound, with shredded scrap indications at $418-420/t CFR Qasim. Sellers were targeting around $423/t, while buyers were holding bids at $418-419/t. Cautious mill procurement continued amid subdued steel sales and lingering uncertainty over the recent tax changes.

Bangladesh: Imported scrap market remained supported, with US West Coast bulk HMS around $400/t CFR Chattogram and containerised HMS at $390-395/t. Shredded scrap offers were heard at around $410/t, while Malaysian and Singaporean PNS were offered at $410-415/t and $420-425/t, respectively. However, trading remained quiet amid rising oil prices and concerns over weaker rebar sales. Local HMS scrap was indicated at BDT 56,000-58,000/t ($456-472/t).

Turkiye: Deep-sea imported scrap market remained stable d-o-d on 25 September, with US HMS 80:20 tradable at $400-405/t CFR. Trading activity was muted as most mills had largely completed their October procurement, limiting fresh deal activity towards the end of the week.

However, firm freight and rising European collection costs continued to support supplier offers. Freight has increased by at least $10/t over the past two weeks, while Baltic collection prices were around EUR 285/t ($325/t). With Turkish rebar prices considered near their peak, mills may face limited room to absorb further scrap increases without sacrificing margins.