- Indian buyers cautious as Turkish cues pressure sentiment
- Turkish scrap prices slide amid weak demand, oversupply
South Asia’s imported scrap markets remained under strain today, weighed down by global price corrections, tepid steel demand, and cautious buyer sentiment. Across India, Pakistan, and Bangladesh, imported scrap activity slowed, as mills either leaned on domestic sources or stayed on the sidelines, awaiting clearer market direction.
Falling Turkish scrap prices and limited Chinese billet demand added pressure across the board, while high freights and tightening financial conditions further suppressed import appetite.
Even Turkiye, a key market bellwether, saw renewed weakness, casting a shadow over regional buying interest. As traders brace for potential further declines, sentiment across South Asia stays broadly bearish.
UK-origin shredded scrap offers dropped by $5/tonne (t) in India, $1/t in Pakistan and $3/t in Bangladesh. US-origin bulk HMS 80:20 offers to Turkiye fell sharply by $7/t d-o-d.
Overview
India: India’s imported scrap market remained soft, pressured by weak global cues, especially falling Turkish scrap prices, and low buying activity.
Containerised shredded prices slid to $380/t CFR Nhava Sheva, with bids mostly in the $370-380/t range, though buyers remained hesitant.
Offers for New Zealand-origin shredded stood at $375/t, while UK-origin HMS was floated at $350/t but lacked takers.
Domestic rebar demand stayed firm, providing some support to sentiments.
However, traders noted a cautious market mood, with most buyers waiting on the sidelines amid trade uncertainties, sufficient inventories, and ongoing global price volatility.
Pakistan: Pakistan’s imported scrap market weakened further amid muted steel sales and continued global price corrections. UK/Europe-origin shredded dropped to $380-382/t CFR Qasim, but buyers showed interest only at around $375-378/t.
Mills remained cautious due to poor rebar sales and low production levels, operating at just 30-40% capacity. Domestic scrap supply stayed tight, yet mills refrained from imports, awaiting a demand rebound or policy clarity.
Falling Turkish scrap prices and subdued Chinese billet offers added pressure, while buyers showed limited interest even in Dubai shredded at $380/t or sheared HMS at $365/t. Overall, sentiment stayed bearish with low buying power.
Bangladesh: Bangladesh’s imported scrap market remained sluggish as buyers stayed cautious amid letter of credit (LC) issues and tight forex, despite a rise in remittances. Mills preferred domestic scrap, backed by stable rebar prices.
Bulk offers from Japan, Australia, and the US softened further but failed to attract interest due to high freight and weak demand. Shredded from Australia/New Zealand was offered at $390-392/t CFR, while bids trailed at $385/t. HMS 90:10 offers stood at $370-385/t, with some trades at $371-372/t. Japanese H2 bulk fell to $365/t CFR, and Singapore-origin HMS 80:20 was offered at $375/t. Sentiment stayed bearish, clouded by global uncertainties, HKC compliance concerns, and political instability.
Turkiye: The Turkish imported scrap market came under renewed pressure following reports of a sharply discounted UK-origin deal at $335/t CFR, fuelling bearish sentiment even though the deal remained unconfirmed.
US-origin bulk HMS 80:20 was assessed at $345/t CFR, down $7/t d-o-d, as mills pressed for lower prices amid weak demand and heightened buyer caution. Meanwhile, domestic scrap supply remained sufficient.
Sellers, however, struggled to keep pace due to high collection costs and a stronger euro.
With most participants stepping back to reassess their strategies, workable US offers hovered between $345-355/t CFR.
The market remained cautious, weighed down by political uncertainty, sluggish finished steel sales, and competitive Chinese billet offers. A trader noted that with more cargoes than buyers, prices could drop another $8-10/t, especially with tariff clarity still pending – possibly testing $328-330/t CFR levels soon.
Price assessments
India: UK-origin shredded indicatives were assessed at $385/t CFR Nhava Sheva, down by $5/t d-o-d.
Pakistan: UK-origin shredded indicatives stood at $381/t CFR Qasim, down by $1/t d-o-d.
Bangladesh: UK-origin shredded indicatives edged down by $3/t d-o-d to $386/t CFR Chattogram.
Turkiye: US-origin HMS (80:20) bulk scrap prices decreased by $7/t d-o-d to $345/t CFR Turkiye.
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