- Turkish scrap prices stable, outlook positive
- Indian buyers cautious amid unworkable offers
The South Asian imported scrap market experienced varying levels of activity across key countries, with each market reflecting unique challenges and opportunities. In India, the market remained subdued, with cautious buyers and a wide bid-offer gap limiting transactions.
Similarly, Pakistan’s demand for imported scrap was tempered by weak construction demand and high landed costs, resulting in limited trade activity.
Bangladesh faced sluggish demand due to the rainy season and slow construction, keeping market activity minimal.
In contrast, Turkiye’s imported scrap market showed stability, bolstered by improving rebar sales and a positive near-term outlook, with expectations of price increases in the coming weeks.
D-o-d, UK-origin shredded scrap offers edged up by $1/t in India and $2/t in Pakistan while remaining unchanged in Bangladesh. US-origin bulk HMS 80:20 offers to Turkiye also remained unchanged today.
Market overview
India: India’s imported scrap demand remained weak despite improved sentiment in neighbouring markets. Buyers stayed cautious due to unworkable offers, with shredded scrap quoted at $365-375/t CFR Nhava Sheva, while bids hovered at $360-365/t. HMS 80:20 offers were heard at around $350-355/t CFR, while buyers bid fell to around $345-350/t CFR.
Domestic uncertainty and sluggish finished steel sales further dented buying interest. Although inquiries picked up, most participants delayed bookings amid a wide bid-offer gap and unclear near-term market direction. Sellers remained firm, but buyers hesitated, keeping overall trade activity limited.
Pakistan: Pakistan’s imported scrap demand stayed cautious despite a slight uptick in offers and improving sentiment. Shredded scrap was quoted at $375-385/t CFR Port Qasim, but most buyers capped interest at around $375/t, citing weak construction demand, slow finished steel sales, and thin rebar margins. While freight surcharges pushed landed costs higher, mills with sufficient inventories avoided bulk purchases, leading to limited trades.
Offers from Europe and the UK remained firm, but many were deemed unworkable. Meanwhile, Dubai-origin shredded continued flowing into Pakistan due to its short transit time. Market participants expect clearer trends in the coming days as conditions begin to stabilise.
Bangladesh: Bangladesh’s imported scrap market remained sluggish, with limited activity due to the rainy season and weak construction demand.
Offers for Australian shredded were at $375-380/t CFR Chattogram, and HMS 90:10 at $365/t, but a $5-7/t bid-offer gap kept transactions at minimal levels.
A 10,000-t Japanese bulk shipment, including shindachi (busheling) at $375-380/t and HMS at $350/t, was sold for August delivery.
Despite no significant LC issues, mills showed restraint, focusing on inventory management rather than committing to new imports, reflecting ongoing market caution.
Turkiye: Turkiye’s imported scrap market showed stable prices with positive near-term expectations driven by improving rebar sales. Offers for US-origin bulk HMS0 80:20 remained at $344/t CFR, with tradable values ranging from $340-345/t CFR.
Improved domestic and export rebar demand has boosted market sentiment, encouraging Turkish mills to restock scrap. Some mills are actively seeking material, with US-based and European suppliers engaged in the market.
While the market remains cautious due to payment term issues, the outlook for June shipments is optimistic, with expectations of scrap prices rising to $350/t CFR by next week, supported by solid rebar demand.
A deal by an Aegean mill from Poland, comprising HMS 80:20 at $340/t CFR and bonus scrap at $360/t CFR, has been concluded.
Price assessments
India: UK-origin shredded indicatives were assessed at $373/t CFR Nhava Sheva, up by $1/t d-o-d.
Pakistan: UK-origin shredded indicatives stood at $376/t CFR Qasim, up by $2/t d-o-d.
Bangladesh: UK-origin shredded prices were assessed at $378/t CFR Chattogram, unchanged d-o-d.
Turkiye: US-origin HMS (80:20) bulk scrap prices were assessed at $344/t CFR Turkiye, stable d-o-d.
Leave a Reply