- Turkish prices edge up despite resistance from mills
- Tight liquidity, weak steel demand impact India, Pak
The South Asian imported ferrous scrap market was under pressure today, as weak steel demand, tight liquidity, and buyer caution limited trade across key regions. In India, ample domestic supply and sluggish steel sales kept imported scrap activity muted, while Pakistan and Bangladesh saw subdued demand ahead of Ramadan, with traders adopting a wait-and-watch approach.
UK-origin shredded tags were range-bound in South Asia, with prices edging up by $2/tonne (t) in Bangladesh and dropping by $1/t in Pakistan, while they remained unchanged d-o-d in India.
Meanwhile, the Turkish market saw slight price gains of around $4/t d-o-d as sellers held firm, though mills remained resistant due to weak finished steel sales. US-origin bulk HMS (80:20) increased by $2/t d-o-d. Overall, market participants remained watchful for potential shifts post-March.
Overview
India: India’s imported scrap market was subdued, as weak demand, tight liquidity, and a bid-offer mismatch kept buyers cautious. With ample domestic supply, many struggled to clear existing port inventories, leading to requests for extended free days.
US suppliers favoured 40-ft containers, but limited Indian interest slowed down trade. Bulk shipments faced delays of 60-70 days, which discouraged purchases.
No firm US offers surfaced, while UK/Europe-origin shredded was offered at $375-390/t CFR Nhava Sheva, but bids lagged at $365-370/t CFR, reflecting limited buying interest. HMS (80:20) stood at $345-350/t CFR.
Market sentiment was bearish, with hopes for recovery post-March, possibly influenced by global trade shifts, including US tariff changes. Meanwhile, Turkish scrap trends were closely watched as a key price indicator for Indian buyers.
Pakistan: Pakistan’s imported scrap market was slow, as weak liquidity and subdued steel demand limited buying interest ahead of Ramadan. Shredded offers from the UK/Europe stood at $380-385/t CFR Qasim, but bids were lower at $378-$382/t CFR, restricting trade.
Suppliers initially quoted higher but adjusted downward due to weak demand. Domestic rebar production in Karachi was at around 40-50% of total capacity, with sales improving slightly, though mostly on credit.
A steel mill official said, “While electricity tariff cuts provided some relief, market sentiment was cautious, and with Ramadan approaching, a further slowdown in activity is expected.”
In the local market, scrap prices were assessed at PKR 140,000-145,000/t ($501-519/t) exw, while rebars were at PKR 245,000-250,000/t ($876-894/t) exw.
Bangladesh: Bangladesh’s imported scrap market was sluggish, as weak domestic steel demand, high mill inventories, and stalled infrastructure projects kept buyers on the sidelines. With Ramadan approaching, traders maintained a cautious stance, resulting in limited bookings. Hong Kong PNS was offered at $385-390/t CFR, while Brazilian HMS (80:20) hovered at around $365/t CFR.
A steel mill official noted that demand had nearly halved since early-February, with no signs of recovery. Shredded offers from Europe stood at $385-388/t CFR Chattogram, but bids were much lower at $374-375/t CFR, creating a $10/t gap that hindered deals.
Turkiye: The Turkish imported scrap market saw prices inch up, as sellers remained firm despite resistance from mills, which faced slow finished steel sales.
UK- and EU-origin deals were concluded late last week, with HMS (80:20) from the EU traded at $353/t CFR and from the UK at $356.50/t CFR. US sellers set minimum targets of $365/t CFR, with some deals reportedly booked at $363-365/t CFR.
Mills showed a preference for US cargoes due to their higher yield but resisted Benelux-origin material. Despite firm seller expectations, slow end-product demand kept mills cautious, with hopes for increased activity in March.
Price assessments
India: UK-origin shredded indicatives were assessed stable d-o-d at $373/t CFR Nhava Sheva.
Pakistan: UK-origin shredded indicatives edged down by $1/t d-o-d to $383/t CFR Qasim.
Bangladesh: UK-origin shredded indicatives edged up by $2/t d-o-d to $385/t CFR Chattogram.
Turkiye: US-origin HMS (80:20) bulk scrap prices were assessed at $362/t CFR Turkiye, up by $2/t d-o-d.
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