- Weaker rupee limits scrap imports into India
- Turkish scrap prices rangebound, multiple deals concluded
The South Asian imported scrap markets remained sluggish amid weak demand, currency fluctuations, and tight liquidity, with buyers hesitant due to rising costs and market uncertainties. India’s scrap imports struggled as a weaker rupee pushed up prices, while Pakistan saw limited buying interest due to cash flow constraints and a slow construction sector.
In Bangladesh, falling rebar prices and cautious mill activity kept demand subdued, though restocking ahead of Ramadan may provide some relief.
Meanwhile, Turkiye’s scrap market remained rangebound, with deals closing slightly higher, while US recyclers held firm on pricing.
Overview
India: India’s imported scrap market remained under pressure as a weaker rupee raised import costs and dampened buying interest. Shredded scrap offers stood at $370-375/t CFR Nhava Sheva, but bid-offer gaps limited deals, while HMS (80:20) from the UK/Europe and West Africa was heard at $345-355/t CFR. Suppliers preferred Pakistan for better prices, and strong US domestic demand kept export availability tight. Additionally, soaring freight rates from the US added to market challenges.
Pakistan: Pakistan’s imported scrap market remained slow amid weak construction demand and cash flow challenges. UK-origin shredded was offered at $380-385/t CFR Qasim, with deals closing between $375-382/t, while UAE-origin HMS stood at $365/t CFR. Limited government projects and subdued steel demand kept buyer interest low. However, traders anticipate a market rebound by mid-February as mills begin restocking ahead of Ramadan, starting in March.
Bangladesh: Bangladesh’s imported scrap market remained slow as weak construction demand and falling rebar prices kept mills cautious. Major Chattogram mills reduced rebar rates by BDT 2,000 to BDT 86,000-88,000/t, while Dhaka mills offered at BDT 82,000-84,000/t.
Shredded scrap from Malaysia/Singapore stood at $375-380/t CFR, with PNS at $385/t CFR and Australian HMS (90:10) at $370-375/t CFR.
Despite slight optimism for restocking ahead of Ramadan, demand remains uncertain.
Turkiye: The Turkish scrap market saw deals closing between $347-353/t CFR, rising from the previous $340-342.5/t.
- UK-origin (Aegean): 18,000t HMS (80:20) at $347/t, bonus at $367/t.
- Baltic-origin (Mediterranean): HMS (80:20) at $351/t.
- EU-origin (West Marmara): HMS (80:20) at $348/t.
- UK and Baltic (Mediterranean): HMS (80:20) at $352.5/t.
- EU-origin (East Marmara): HMS (80:20) at $353/t.
US recyclers stayed firm with offers at $360-362/t CFR. Some Turkish mills remained inactive, prioritising finished steel sales. Meanwhile, Turkish exported rebar held steady at $560/t FOB, reflecting cautious market sentiment.
Price assessments
India: UK-origin shredded indicatives were assessed stable d-o-d at $373/t CFR Nhava Sheva.
Pakistan: UK-origin shredded indicatives were at $380/t CFR Qasim, down $1/t d-o-d.
Bangladesh: UK-origin shredded was assessed unchanged d-o-d at $385/t CFR Chattogram.
Turkiye: US-origin HMS (80:20) bulk scrap edged down by $1/t d-o-d to $354/t CFR Turkiye.
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