South Asia: Imported ferrous scrap markets remain subdued despite Pakistan’s buying spree

• Turkiye’s deep-sea scrap rally extends on tighter supply
• Bangladeshi mills curb steel output amid liquidity constraints

South Asian imported ferrous scrap markets remained mixed on 27 July, with Pakistan buying aggressively despite higher prices, while India and Bangladesh stayed subdued amid weak steel demand and monsoon-related disruptions. Turkiye’s deep-sea scrap market strengthened on active mill bookings.

India: Imported ferrous scrap trading remained subdued as weak finished steel demand, the ongoing monsoon season, and poor import viability continued to suppress buying activity. Buyers remained cautious, with limited willingness to secure HMS 80:20 above $330/t CFR, while market participants expect sentiment to remain weak through August before a gradual recovery in September.

Africa-origin LMS bundles were offered at $290/t CFR and HMS bundles at $305/t CFR. Meanwhile, UK-origin HMS was heard at $330/t CFR, while shredded scrap offers were heard at $395-400/t CFR, with material from older UK yards available at around $395/t CFR.

Pakistan: Pakistan has recently emerged as one of the strongest buyers of containerised ferrous scrap, with aggressive procurement driving prices higher despite subdued sentiment in other Asian markets. Shredded scrap offers were heard at $415-420/t CFR Port Qasim, with deals concluded at $405-415/t CFR, while premium yard material was indicated above $422/t CFR, supported by rising freight costs and firm buying interest.

The UK and the UAE are Pakistan’s two main sources of imported ferrous scrap. However, supply from the UAE has tightened due to disruptions linked to the Middle East conflict. With fewer export origins available, Pakistani importers are being forced to pay premiums to secure sufficient scrap for domestic consumption.

Bangladesh: Imported ferrous scrap activity in Bangladesh remained extremely weak as mills continued to curb production amid persistent letter of credit (LC) constraints and poor finished steel demand. Buying interest stayed limited, with US West Coast-origin HMS 1/2 (80:20) offers heard at $390-400/t CFR against bids of $385-390/t CFR, while containerised shredded scrap was tradable at $390-400/t CFR Chattogram.

Turkiye: The imported deep-sea ferrous scrap market extended its upward momentum on 27 July, supported by active mill bookings for August and early September shipments. Benchmark US or premium-origin HMS 80:20 was assessed at $375-377/t CFR, while EU-origin material was tradable at $369-371/t CFR, with several fresh cargoes concluded during the week.

The rally was driven by limited scrap availability in Europe, where slow collection rates continued to restrict supply, alongside firmer downstream steel sentiment. Turkish mills also raised rebar offers in response to rising scrap procurement costs, providing additional support to imported scrap prices.