- Indian mills cut capacities amid weak steel demand
- Turkish mills restock cautiously, prices dip further
The South Asian ferrous scrap markets continued to face challenges with subdued demand and cautious trading. In India, weak steel demand has led to major mills operating at reduced capacities, with limited interest in imported scrap. Pakistan experienced cautious sentiment, with prices easing as buyers hold back due to liquidity concerns. Bangladesh remained subdued, with limited activity seen as weak domestic demand and high inventories deterred major purchases.
Meanwhile, Turkiye saw further declines in imported scrap prices as mills continued to restock cautiously, struggling with bearish sentiment and high collection costs.
Offers for shredded scrap from the UK/Europe remained unchanged in India, while edging down by $1/t d-o-d in Pakistan and Bangladesh. US-origin bulk HMS (80:20) offers dropped by $3/t d-o-d.
Overview
India: Indian buyers showed limited interest in imported scrap as weak downstream steel demand forced major mills to cut production, and operate at 70-80% capacity. The INR’s depreciation against the dollar further dampened sentiment, making imports costlier. Shredded scrap offers from the US and UK/Europe were assessed at $370-375/t CFR, while buyer bids hovered at $365-370/t CFR. HMS (80:20) from UK/Europe was offered at $350-355/t CFR, with bids hovering around $345-350/t CFR. West African HMS offers varied between $350-360/t, depending on container size. Overall, the market remains subdued, reflecting low demand and cautious buying.
Pakistan: Pakistan’s imported scrap market showed cautious sentiment, with buyers holding back as prices softened despite recent deals. Restocking activity is driving demand, but liquidity concerns persist, keeping the market under pressure. Suppliers are focusing on Pakistan amid subdued activity in neighbouring regions, but end-users remain hesitant, waiting for clearer opportunities.
Offers for shredded scrap from the UK/Europe were heard at $380-383/t CFR Qasim.
Bangladesh: Bangladesh’s imported scrap market remained subdued as weak domestic steel demand and high inventories kept major mills away from fresh purchases. Offers for Australian shredded were at $375-380/t CFR Chattogram, HMS (80:20) at $365/t, and PNS at $390/t. Market activity is likely to remain muted, with uncertainty prevailing as Ramadan approaches in March.
Turkiye: The Turkish imported ferrous scrap market experienced further price declines as mills continued cautious restocking amid weak finished steel sales and bearish sentiment. Deep-sea scrap offers for EU-origin HMS (80:20) hovered at $327-328/t CFR, while Baltic-origin material faced resistance at $330-335/t CFR. US-origin bulk HMS (80:20), at $332/t CFR, reflected a $3/t drop d-o-d. Amid a surplus of January shipments and challenging demand, expectations of further price pressure persist, with sellers struggling to maintain stability against high collection costs and weak downstream demand.
Price assessments
India: UK-origin shredded indicatives were assessed at $373/t CFR Nhava Sheva, unchanged d-o-d.
Pakistan: UK-origin shredded indicatives were at $381/t CFR Qasim, down by $1/t d-o-d.
Bangladesh: UK-origin shredded were assessed at $384/t CFR Chattogram, down by $1/t d-o-d.
Turkiye: US-origin HMS (80:20) bulk edged down by $3/t d-o-d to $332/t CFR Turkiye.
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