- Pakistan buyers cautious amid tax, freight concerns
- Turkiye buyers hold off amid weak steel demand
South Asia’s imported scrap market remained largely subdued over the week, weighed down by a combination of weak steel demand, seasonal disruptions, and broader geo-political uncertainties.
Across India, Pakistan, and Bangladesh, mills held back on fresh bookings amid falling rebar prices, monsoon-related slowdowns, and a preference for cheaper domestic alternatives. Traders in these regions adopted a cautious stance, with most opting to wait for clearer pricing cues or policy changes — particularly in Pakistan, where new import tax rules are expected.
Meanwhile, Turkiye’s bulk scrap market remained range-bound, with buyers resisting higher offers due to sluggish finished steel sales and availability of alternative billet supplies.
Market overview
India: India’s imported scrap market remained weak amid sluggish steel demand, monsoon disruptions, and the availability of cheaper domestic alternatives like sponge iron. Shredded scrap offers hovered at $355-360/t CFR Nhava Sheva, but buyers were largely bidding lower at $350-355/t, with minimal trade reported. HMS offers from West Africa stood at $335-340/t, while UK-origin HMS hovered at around $335/t.
Domestic rebar prices continued to fall, hitting new lows, further dampening sentiment. Mills preferred locally sourced materials due to cost advantages, while geopolitical tensions and freight uncertainties added to the caution.
Sellers mostly held back, awaiting clearer market direction before re-entering with firm offers.
Pakistan: Pakistan’s imported scrap market remained quiet as ongoing geopolitical tensions and freight uncertainties limited buying activity. Shredded scrap offers stood at $370-375/t CFR Qasim for UK/EU origin, while UAE-origin was quoted higher at $385/t. HMS scrap from the UAE ranged between $360-368/t CFR.
As per market participants, many buyers stayed on the sidelines, awaiting clarity on new taxation policies at the port, which are expected to lower import costs by up to PKR 2,500/t.
In the domestic market, scrap prices held steady at PKR 135,000-140,000/t, while rebar hovered between PKR 235,000-240,000/t, reflecting the broader market’s cautious tone.
Bangladesh: Bangladesh’s imported scrap market remained weak amid ongoing monsoon disruptions and sluggish construction activity. Mills operated below capacity, showing limited interest in near-term bookings and focusing instead on shipments for late August to early September.
Containerised offers hovered at $355/t for HMS and $370-375/t for shredded, while buyer bids remained lower at $340-345/t and $360-365/t CFR Chattogram, respectively. According to a Chattogram-based trader, US West Coast bulk offers were at $350/t for HMS, $355/t for shredded, and $360/t for bonus. Two recent US bulk deals were confirmed at $346/t and $350/t CFR for HMS, with additional shredded and bonus volumes included.
Weak rebar demand and minimal government project activity kept market sentiment cautious, leaving room for further price corrections.
Turkiye: The Turkish imported scrap market remained range-bound around $345/t CFR as mills resisted price hikes, citing weak rebar demand and competitive Chinese billet offers. While sellers held firm due to higher European collection costs and a strong euro, buyers capped bids — $345/t for US, $340-342/t for Baltic, and $335-338/t for EU cargoes. Though a few bulk bookings were reported, most mills were only replenishing spot stocks.
With sluggish finished steel sales, many buyers stayed cautious, delaying bulk purchases. Despite signs of improving sentiment, the market lacked momentum, as both mills and suppliers adopted a wait-and-watch approach for clearer pricing direction.
Price assessments
India: UK-origin shredded indicatives were assessed at $360/t CFR Nhava Sheva, up by $1/t d-o-d.
Pakistan: UK-origin shredded indicatives stood at $372/t CFR Qasim, unchanged d-o-d.
Bangladesh: UK-origin shredded prices were assessed at $367/t CFR Chattogram, down by $1/t.
Turkiye: US-origin HMS (80:20) bulk scrap prices were assessed at $345/t CFR Turkiye, unchanged d-o-d.
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