- Indian buyers shy away from new bookings on price concerns
- Mounting buyer resistance weighs on Turkish scrap offers
South Asia’s imported scrap markets remained largely quiet this week, with trading sentiment weighed down by post-Eid sluggishness, global market uncertainty, and persistent bid-offer mismatches. Notably, UK-origin shredded scrap offers to India, Pakistan, and Bangladesh remained unchanged d-o-d. Meanwhile, US-origin bulk HMS 80:20 offers to Turkiye dropped by $5/tonne (t) d-o-d.
In India, buyers stepped back amid bid-offer disparities and expectations of price corrections, despite steady domestic steel sales. Pakistan’s market also saw muted activity as mills stayed cautious due to weak construction demand and firm offers. Bangladesh grappled with letter of credit (LC) challenges and tight forex availability, keeping buying interest subdued.
Additionally, Turkiye’s scrap market softened further, with falling bulk prices pressuring sellers and pushing recyclers to the sidelines.
Overview
India: India’s imported scrap market remained subdued, as buyers were reluctant to book material amid a persistent bid-offer mismatch and expectations of a price correction. UK/EU-origin shredded scrap was offered at $390-395/t CFR Nhava Sheva, while buyers quoted lower bids of $380-385/t. HMS 80:20 offers hovered at around $360-365/t CFR, but interest remained weak. Traders noted that while domestic steel sales were healthy, cheaper sponge iron and domestic scrap options limited import appetite.
With firm freights and falling Turkish scrap prices, market sentiment stayed cautious, as most buyers waited for clearer direction before booking new cargoes.
Pakistan: Pakistan’s imported scrap market remained largely inactive post-Eid, with buyers cautious amid sluggish domestic demand, firm offers, and global market uncertainty. UK/EU shredded was offered at $390-395/t CFR Qasim, while UAE-origin offers edged up to $395-400/t.
Domestic scrap stood at PKR 135,000-140,000/t ($487-505/t), while rebars were quoted at PKR 238,000-242,000/t ($849-863/t) exw.
Though electricity tariff cuts brought some relief, mills remained hesitant, awaiting stronger signals from construction activity and the upcoming budget. Sentiment stayed cautious, as bid-offer gaps widened, and global price volatility weighed on trading decisions.
Bangladesh: Bangladesh’s imported scrap market remained subdued post-Eid, with limited buying activity due to ongoing LC issues and tight forex conditions. Shredded was offered at $385-395/t CFR, while Australian HMS 80:20 was priced at $365-370/t.
Domestic rebar prices stood at BDT 82,000-83,000/t ($674-682/t) in Dhaka and BDT 85,500-87,000/t ($703-714/t) in Chattogram. Shipyard PNS scrap was quoted at BDT 57,000-57,500/t ($469-473/t) and HMS at BDT 55,500-56,500/t ($456-464/t) ex-yard.
Turkiye: The Turkish imported scrap market weakened notably today, with US-origin bulk HMS (80:20) prices assessed at $365/t CFR, down $5/t from the previous day, amid mounting buy-side pressure.
A US-origin deal booked at $369/t CFR for HMS 90:10 confirmed the downward trend, with shredded and bonus scrap at $386/t CFR.
Indicative offers for US/Baltic-origin HMS 80:20 mostly hovered at $365-370/t CFR. Mills showed limited interest, which fuelled bearish sentiment, while EU recyclers refrained from offering, citing low workable levels. Despite the soft tone, some traders expected support near $360/t CFR if restocking revives and billet prices stabilise in the Far East.
Price assessments
India: UK-origin shredded indicatives were assessed stable d-o-d at $387/t CFR Nhava Sheva.
Pakistan: UK-origin shredded indicatives remained unchanged d-o-d at $390/t CFR Qasim.
Bangladesh: UK-origin shredded indicatives stood at $393/t CFR Chattogram, unchanged d-o-d.
Turkiye: US-origin HMS (80:20) bulk scrap prices were assessed at $365/t CFR Turkiye, decreasing by $5/t d-o-d.
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