- Turkiye leads scrap price surge on strong mill demand
- India market awaits Budget and potential steel import duty
The South Asian ferrous scrap markets witnessed an uptrend, with Turkish prices leading the gains driven by renewed mill demand. Indian and Bangladeshi markets remained subdued, though Bangladesh anticipates a potential recovery later in the year. Indian buyers continue to purchase at a slow pace amid cautious stances before budget and safe guard duty announcements. Pakistani buying activity was limited, while scrap offers showed mixed movements across the region.
Overview
India: The Indian scrap market remains subdued with limited buyer interest and slow activity.
Despite a $3/t d-o-d increase in UK-origin shredded indicatives to $375/t CFR Nhava Sheva, market sentiment remained cautious with buyers continuing purchases in the domestic market and has shown diminished interest in imported materials so far negotiating to drop the levels.
As per market pariticipants, this cautiousness stems from anticipation surrounding the upcoming budget and the potential implementation of import safeguard duties, which has significantly decreased buying activity.
Pakistan: Pakistani buyers have been less active in the market A supplier-side source informed that offers Shredded scrap at $385-386/t but materials being traded at $380/t CFR Qasim, indicating a moderately active market driven by restocking efforts.
A Karachi mill source reports some materials of around 5,000 t were heard to be booked recently. With Turkish scrap at $340/t, UK/EU offers to Pakistan are expected to rise. Rebar sales are slow; prices are around PKR 243-245,000/t ($871-878/t) exw. Billet/balaat around PKR 200-210,000/t ($717-753/t) exw.
Bangladesh: The Bangladesh ferrous market remains sluggish, with recovery expected between March/April and potentially after June. Despite a $3/t d-o-d increase to $384/t CFR Chattogram for UK-origin shredded, activity is slow. Dhaka mills face weak steel sales and are trying to raise rebar prices to maintain margins, but demand remains weak.
As per market insiders, Australian material is preferred due to lower prices and faster shipping. The delayed IMF $4.7 billion loan adds to market uncertainty.
Turkiye: Turkish deep-sea scrap prices are continuing their upward trend due to renewed demand from mills seeking material for February shipments. Market sources place the workable level for heavy melting scrap (80:20) at $340/t CFR, a significant increase from the previous week, which many believed represented the market’s lowest point.
Despite this upward movement, some market participants remain cautious. One recycler noted that while the fundamental business conditions haven’t significantly improved, potential geopolitical factors, such as Turkiye’s influence in Syria and the ongoing situation in Gaza, could impact the Turkish rebar business and subsequently affect scrap prices.
A trader mentioned a scarcity of sellers, further tightening supply. A Turkish mill source, while seeking a European origin cargo at an expected price of $335/t CFR for HMS (80:20), acknowledged the possibility of further price increases.
Price assessments
India: UK-origin shredded indicatives were assessed at $375/t CFR Nhava Sheva, up by $3/t d-o-d.
Pakistan: UK-origin shredded indicatives were at $382/t CFR Qasim, stable compared previous day.
Bangladesh: UK-origin shredded was assessed at $384/t CFR Chattogram, up by $3/t d-o-d.
Turkiye: US-origin HMS (80:20) bulk scrap offers edged up by $4/t at $340/t CFR Turkiye compared to previous day.
Leave a Reply