- Indian buyers stay inactive amid cash crunch
- Turkish mills resist higher offers on weak rebar sales
South Asia’s imported ferrous scrap markets remained subdued, as sluggish steel sales, weak liquidity, and a cautious approach ahead of Ramadan limited buying activity.
Indian buyers stayed largely inactive due to ample domestic scrap availability and a severe cash crunch, while Pakistani buyers were hesitant amid weak demand. In Bangladesh, stalled infrastructure projects and slow steel sales pushed demand lower, with shredded prices declining.
UK-origin shredded tags were range-bound in South Asia, with prices edging up by $2/tonne (t) in India and $1/t in Pakistan. Prices dipped by $1/t in Bangladesh.
Meanwhile, Turkiye’s scrap market held steady, with mills resisting higher offers due to weak rebar sales. Prices of US-origin HMS (80:20) stood unchanged compared to Friday.
Market participants expect firmer US scrap prices in March, but for now, South Asia and Turkiye remain cautious amid ongoing economic and seasonal pressures.
Overview
India: Indian buyers remained largely inactive due to weak demand, a persistent bid-offer gap, and ample domestic scrap availability, all compounded by a severe cash crunch. Buyers struggled to clear existing materials at ports, with many requesting additional free days, a market participant noted.
A trader highlighted that US suppliers preferred 40-ft containers, but limited demand for these in India further slowed trade. While bulk shipments from the US remained an option, extended lead times of 60-70 days deterred buyers.
No firm offers emerged from the US, while UK/Europe-origin shredded was heard at $370-375/t CFR Nhava Sheva, with HMS (80:20) at $345-350/t CFR.
Pakistan: Pakistan’s imported scrap market remained subdued, as buyers remained cautious ahead of Ramadan, with weak liquidity and sluggish domestic steel demand limiting activity.
Shredded offers from the UK and Europe ranged within $380-385/t CFR Qasim, but lower bids at $378-380/t CFR kept trade minimal.
Bangladesh: Bangladesh’s imported scrap demand remained weak due to low buying interest ahead of Ramadan, coupled with sluggish steel sales as government and infrastructure projects stalled.
A steel mill official noted, “Demand is nearly half of what was seen in February, with major projects either slow or halted and no new developments in sight. Rebar prices in Chattogram stood at BDT 85,000-86,000/t ($700-708/t) exw, with recovery appearing distant. Shredded offers from Europe were at $385-388/t CFR Chattogram, with bids lower at $374-375/t CFR, while Australian shredded was offered at $378-380/t CFR against bids of $366-370/t CFR. PNS and Busheling were quoted at $388-392/t CFR, with buyers bidding at around $380-382/t CFR.”
A trader highlighted, “Bangladesh and Pakistan remain inactive due to Ramadan, with shredded dropping from $385/t CFR last week to $375/t CFR now. The market also faced a $10/t gap between bids and offers, making transactions unworkable. Additionally, high freights from Australia to Chattogram have pushed Australian suppliers to focus on Indonesia.”
Turkiye: The Turkish imported ferrous scrap market remained stable, with HMS 80:20 assessed at $358/t CFR, despite sluggish rebar demand and cautious buying. Mills resisted higher scrap offers due to weak domestic and export rebar sales, keeping deep-sea trade in a stand-off.
A major Turkish steelmaker noted that European scrap indicatives are above $355/t this week, with Continental 80:20 offers at $357-358/t CFR Turkiye. A stronger euro and pound kept European recyclers from lowering offers, while strong US domestic demand restricted US-origin supply.
Market participants expect firmer US scrap prices in March, which could pressure Turkish scrap tags upward, though mills continue with hand-to-mouth purchases, keeping sentiment cautious.
Price assessments
India: UK-origin shredded indicatives edged up by $2/t to $375/t CFR Nhava Sheva, compared to the last close on Friday.
Pakistan: UK-origin shredded indicatives increased by $1/t to $385/t CFR Qasim, compared to the last close on Friday.
Bangladesh: UK-origin shredded was assessed down by $1/t at $384/t CFR Chattogram, compared to the last close on Friday.
Turkiye: US-origin HMS (80:20) bulk scrap was assessed at $358/t CFR Turkiye, unchanged compared to the last close on Friday.
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