- Indian buyers cautious amid soft steel demand, rupee woes
- Turkish market witnesses mixed trends; UK deal stirs confusion
The South Asian imported ferrous scrap market remained subdued this week, weighed down by regional steel demand challenges, currency pressures, and global price corrections.
In Pakistan and Bangladesh, mills held off on fresh bookings amid weak rebar sales and financial constraints, while India remained mostly quiet, watching trends in neighbouring markets.
Meanwhile, in Turkiye, conflicting price signals — driven by both improved restocking interest and a heavily discounted UK deal-added uncertainty, stalling momentum.
Buyers across the board showed limited appetite as caution prevailed amid unclear market directions. While UK-origin shredded scrap offers to India remained unchanged, these edged down by $1/t in both Pakistan and Bangladesh. US-origin bulk HMS 80:20 offers to Turkiye edged up by $3/t d-o-d.
India: India’s imported scrap market witnessed sluggish activity as global cues weakened and domestic steel demand softened. Containerised shredded scrap hovered around $370-385/t CFR Nhava Sheva, but buyers remained hesitant, with bids trailing offers by $5-10/t. UK and Australian HMS (80:20) saw limited trades at $350-365/t CFR.
A widening bid-offer gap, rising sponge iron usage, and falling rebar prices kept mills cautious. Traders noted that sufficient inventories, rupee volatility, and concerns over cheap Chinese steel imports pushed many buyers to adopt a wait-and-watch stance. Although domestic rebar demand held firm, the market remained under pressure due to bearish Turkish sentiment and declining deep-sea scrap benchmarks.
Pakistan: Pakistan’s imported scrap market remained under pressure as weak steel demand, sluggish rebar sales, and global price corrections weighed heavily on sentiment. UK/EU shredded scrap prices dropped to $380-382/t CFR Qasim, though buyers only showed interest at $375-378/t levels. Mills operated at just 30-40% capacity due to poor domestic sales and tight cash flow.
Falling Turkish scrap prices and weak Chinese billet offers added further pressure. Even Dubai shredded at $380/t and HMS at $365/t saw minimal interest. With buyers cautious and no immediate signs of recovery or supportive policy, the market remained bearish and largely inactive.
Bangladesh: Bangladesh’s imported scrap market remained under pressure this week as buyers stayed largely inactive amid ongoing LC restrictions and tight forex despite improved remittances. Mills focused on domestic scrap, supported by stable rebar prices, while bulk offers from Japan, Australia, and the US continued to slide without triggering much interest. Shredded scrap from Australia/New Zealand was offered at $390-392/t CFR, but bids lagged at $385/t. HMS 90:10 saw limited trades at $371-372/t, and PNS at $390/t.
Turkiye: The Turkish imported scrap market showed mixed sentiment today. US-origin bulk HMS 80:20 offers edged up to $348/t CFR amid slight improvement in mill restocking demand and a Baltic-origin booking at $348/t CFR. However, a sharply discounted UK deal at $335/t CFR created confusion, intensifying downward pressure despite being considered a distressed, one-off cargo.
While US-origin offers hovered at around $355/t CFR, buyers grew hesitant, expecting lower workable levels of $345-350/t CFR. Sell-side sentiment remained cautious, with exporters facing margin challenges.
Overall, while some mills sensed the market was stabilising, the UK sale disrupted clarity, prompting a pause in negotiations and increased uncertainty.
Price assessments
India: UK-origin shredded indicatives were assessed at $385/t CFR Nhava Sheva, unchanged d-o-d.
Pakistan: UK-origin shredded indicatives stood at $380/t CFR Qasim, down by $1/t d-o-d.
Bangladesh: UK-origin shredded indicatives edged down by $1/t d-o-d to $385/t CFR Chattogram.
Turkiye: US-origin HMS (80:20) bulk scrap prices rose by $3/t d-o-d to $348/t CFR Turkiye.
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