- Weak steel demand limits aggressive import activity
- Higher freights support imported scrap offers in Pakistan
South Asia imported ferrous scrap markets showed mixed trends d-o-d on 23 July, with stronger buying activity and higher freight costs supporting prices in Turkiye and Pakistan, while weak steel demand, monsoon disruptions, and cautious mill procurement kept trading subdued in India and Bangladesh. Geopolitical tensions around the Strait of Hormuz also continued to influence market sentiment and freight rates.
India: The imported ferrous scrap market remained subdued as weak steel demand, the monsoon season, a weaker rupee, and geopolitical uncertainties continued to weigh on buying activity. Mills limited purchases to immediate requirements.
UK-origin shredded scrap offers were heard above $390/t CFR, while UK-origin HMS 80:20 was indicated around $335/t CFR, with no confirmed trades reported.
Market participants said weak rebar demand and sluggish finished steel sales continued to discourage fresh import bookings, keeping buyers on the sidelines.
Pakistan: Imported shredded scrap prices in Pakistan strengthened as UK/EU-origin shredded scrap offers increased to $410-415/t CFR Port Qasim, with deals concluded at $408-412/t CFR. A 4,000-4,500 t UK-origin shredded cargo was booked at $408-410/t CFR Port Qasim. Meanwhile, Malaysian-origin busheling was offered at $430-435/t CFR, while PNS was heard at $425/t CFR. Buyers, however, maintained workable bids at $390-395/t CFR, keeping the bid-offer gap relatively wide.
Market participants attributed the firmer sentiment to higher freight costs, tighter summer scrap availability, and continued uncertainty over vessel movements through the Strait of Hormuz. However, weak domestic steel demand and cautious mill procurement continued to limit aggressive buying activity.
Bangladesh: The imported ferrous scrap market remained subdued as weak steel demand and monsoon disruptions continued to limit buying activity.
Containerised shredded scrap was heard at $365-370/t CFR Chattogram, while Central America-origin HMS 80:20 bids were around $350/t CFR. UK-origin shredded offers stood at $395-400/t CFR, containerised HMS at $365-375/t CFR, Japanese bulk H2 at $390/t CFR, and bulk HMS 80:20 at $400/t CFR.
Domestic melting scrap was assessed at BDT 53,000-54,000/t ($429-437/t), while Grade-60 rebar stood at BDT 90,000-91,000/t ($729-737/t) in Chattogram and BDT 85,000-86,000/t ($688-696/t) in Dhaka. Mills continued need-based procurement amid weak construction demand.
Turkiye: Imported deep-sea scrap prices strengthened as mills returned to the market following a slight improvement in domestic rebar prices. US-origin HMS 80:20 was heard around $375/t CFR, with tradable levels at $375-377/t CFR for US-origin cargoes and $369-371/t CFR for European-origin material.
Market participants said firmer freights from the US and Europe continued to support offers, while renewed buying improved sentiment. LME ferrous scrap futures also strengthened, and Turkish rebar export offers increased to $575-585/t FOB. However, participants cautioned that it remains too early to confirm a sustained recovery in rebar demand through Q3.
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