- Indian buyers cautious post-safeguard duty
- Turkish scrap offers plunge on weak demand
South Asia’s imported scrap markets reflected a cautious and subdued tone across the board, as regional buyers retreated in response to falling steel prices, global market volatility, and rising local production costs. In India, uncertainties around the recently imposed safeguard duty and weak domestic steel sentiment kept buyers on the sidelines. Pakistan saw sluggish activity due to poor industrial demand and a bearish international trend, while Bangladesh’s market was hit by higher energy tariffs and soft construction demand, leading to mill shutdowns. Turkiye’s ongoing weakness further weighed on sentiment, adding pressure to already strained buyer-seller dynamics throughout the region.
D-o-d, UK-origin shredded scrap offers remained unchanged in India, while edging down by $4/tonne in Pakistan and $5/t in Bangladesh. Notably, bulk HMS 80:20 offers from the US to Turkiye also fell by a sharp $8/t.
Overview
India: India’s imported scrap market stayed largely subdued as buyers remained silent, adopting a cautious stance amid market volatility and uncertainty over the impact of the 12% safeguard duty on steel imports.
While shredded scrap offers from the UK/EU stood at $375-378/t CFR Nhava Sheva, bids lagged behind by $5-10/t due to weak finished steel prices and a widening bid-offer gap.
Some seasonal demand ahead of the monsoon pushed prices slightly higher, but the momentum remained limited. Domestic alternatives like sponge iron further dampened interest in imports. Despite a temporary lift in steel prices post-duty, muted procurement and falling Turkish scrap values kept the overall sentiment soft.
Pakistan: Pakistan’s imported scrap market remained under pressure due to weak steel demand, sluggish rebar sales, and falling global scrap and billet prices.
Shredded scrap offers from the UK/EU dropped to $370-375/t CFR Qasim, but Pakistani buyers pushed for levels below $370/t, which sellers were unwilling to accept.
The bearish Turkish scrap market and cheap Chinese billet offers further dampened sentiment. Domestic billet and rebar prices continued to slide, while local scrap hovered at around PKR 135,000-140,000/t. With industrial activity running at just 30-40% and buyers largely inactive, the market stayed quiet. Sellers held back amid global uncertainty, waiting for clearer cues before adjusting offers further.
Bangladesh: Bangladesh’s imported scrap market remained subdued amid weak demand, rising production costs, and currency concerns. Most buyers held back, cautious due to soft finished steel demand and a widening bid-offer gap.
Shredded offers from Australia and Malaysia stood at $385-390/t CFR Chattogram, but buyers aimed closer to $380/t. HMS 80:20 was heard at $365-370/t CFR, with bids at around $360/t.
While sellers were open to negotiations, firm offers and muted construction activity kept trading limited. The recent hike in gas and electricity prices has led to shutdowns of some of the smaller mills, further slowing procurement. Mills in Dhaka and Chattogram remained conservative, awaiting clearer market signals before booking.
Turkiye: The Turkish imported scrap market remained under strong bearish pressure with US-origin bulk prices plunging due to weak fundamentals and falling domestic rebar prices. Mills, grappling with poor steel sales and reduced capacity, pulled back on scrap demand. HMS (80:20) scrap from the US was assessed at $325/t CFR, down $8/t d-o-d.
While a few late-week deals hovered around $325-330/t CFR, sentiment stayed negative as buyers pushed bids lower, and suppliers struggled with falling collection costs and currency pressures. Despite hopes for May cargo bookings to spur a rebound, near-term expectations remained grim.
Price assessments
India: UK-origin shredded indicatives were assessed at $375/t CFR Nhava Sheva, unchanged d-o-d.
Pakistan: UK-origin shredded indicatives stood at $371/t CFR Qasim, down by $4/t d-o-d.
Bangladesh: UK-origin shredded indicatives dropped by $5/t d-o-d t0 $380/t CFR Chattogram.
Turkiye: US-origin HMS (80:20) bulk scrap prices decreased sharply d-o-d by $8/t $325/t CFR Turkiye.
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