- Indian demand lukewarm amid bid-offer mismatch
- Turkish scrap prices edge up on euro appreciation
South Asia’s imported scrap market remained subdued, along with weak buying interest and sluggish trading activity across India, Pakistan, and Bangladesh. While India saw cautious buying due to bid-offer mismatches, Pakistan’s market slowed further as mills operated at reduced capacity because of the ongoing Ramadan. Bangladesh remained active in terms of sourcing from nearby origins but faced delays in LC openings, impacting overall trade momentum.
Meanwhile, Turkiye witnessed a slight price increase as sellers raised offers amid euro appreciation. Despite mixed sentiments, traders across the region anticipate a potential post-Eid demand recovery, though rising freight costs and currency fluctuations continue to rock the market.
UK-origin shredded scrap offers edged up by $1/t in India and Pakistan while remaining unchanged in Bangladesh. US-origin bulk HMS (80:20) offers to Turkiye also edged up by $2/t d-o-d.
Overview
India: India’s imported scrap market remained lukewarm, with buyers hesitant due to the bid-offer mismatches. UK/EU-origin shredded was offered at $375-380/t CFR Nhava Sheva, but bids stayed lower at $370-375/t. Australian HMS was quoted at $365/t CFR Chennai, with buyers countering at $355/t. Some price improvement was noted, driven by stronger finished steel sentiment and rising global scrap prices. However, sellers preferred Pakistan due to better pricing. Chennai buyers remained cautious, favouring sponge iron over scrap. Despite expectations of a price rise, weak demand across South Asia kept any significant upward momentum in check.
A trader remarked, “We are receiving high offers from yards, but Indian buyers are not matching them, making deals unviable. For instance, UK HMS is being offered at GBP 233-235/t ($302-304/t), with freight costs at around $58/t, while buyer bids remain at approximately $355/t.”
Pakistan: Pakistan’s imported scrap market remained sluggish due to Ramadan, with most mills operating at 50% capacity and focusing on maintenance. UK/EU-origin shredded offers stood at $380-385/t CFR Qasim, but bids remained lower at $378-380/t. Local scrap availability and payment delays further dampened demand. UAE shredded was quoted at $385-390/t CFR with no counter bids.
Market sentiment remained weak, though traders expect a post-Eid demand revival, with increased bookings likely in April-May. Rising freight costs and currency fluctuations added pressure, but the outlook remains uncertain amid high taxes and a struggling construction sector.
Bangladesh: Bangladeshi buyers showed limited interest in UK/Europe material but remained active for nearby origins like Australia, Hong Kong, Singapore, and Malaysia. However, ongoing Ramadan has delayed LC openings, slowing overall trade. Indicative offers for Australian shredded stood at $375-$380/t CFR Chattogram, while HMS 90:10 was at $362-$365/t CFR. GI bundles from the Philippines were heard at $330-$335/t CFR. Meanwhile, Hong Kong-origin material was quoted above $390/t CFR, and deemed unworkable.
Turkiye: The Turkish imported scrap market saw a slight price increase as EU and Baltic sellers raised offers due to the euro’s appreciation against the dollar. US-origin bulk HMS (80:20) was assessed at $375/t CFR, up $2/t. Sellers remained firm, with US recyclers pushing for $390/t CFR, while European and Baltic suppliers adjusted prices to offset currency losses.
Turkish mills attempted to resist the hikes, but strong seller sentiment and firm price expectations kept values elevated. Unconfirmed reports suggested a Baltic-origin deal at $374/t CFR, reinforcing the market’s bullish stance.
Price assessments
India: UK-origin shredded indicatives edged up by $1/t d-o-d to $378/t CFR Nhava Sheva.
Pakistan: UK-origin shredded indicatives stood at $382/t CFR Qasim, up by $1/t d-o-d.
Bangladesh: UK-origin shredded indicatives remained unchanged d-o-d at $385/t CFR Chattogram.
Turkiye: US-origin HMS (80:20) bulk scrap prices rose by $2/t at $375/t CFR Turkiye.
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