South Asia: Imported scrap markets face slowdown; tax exemptions boost trade in Pakistan

• India sees weak demand, buyers prefer domestic scrap
• Heavy rains slow down construction work in Bangladesh

South Asia’s imported scrap markets remained subdued amid selective buying. India witnessed weak inquiries in India, Pakistan received a boost from tax-efficient imports, and Bangladesh was slowed down by heavy rains. However, prices held steady amid limited activity.

India: India’s imported scrap market remained weak, with limited inquiries as buyers favoured cheaper domestic alternatives. HMS 80:20 offers from the UK, Brazil, and West Africa ranged within $330-335/t CFR, while shredded was at $360/t CFR.

Recent African HMS 80:20 sales included 23-t loads at $343/t and 25-t loads at $350/t, delivered CFR Mundra with inland container depot (ICD) options. Buyers were increasingly selective amid the subdued market.

Pakistan: Pakistan’s imported scrap market saw UAE HMS 80:20 at $375/t and UK shredded at $380-382/t CFR Qasim, with inquiries at around $376-378/t. Mills benefited from tax efficiency, paying duty only on value addition for imported scrap.

Local scrap rates ranged within PKR 135,000-140,000/t ($/t), remaining under pressure despite demand in tax-exempt areas. Overall, imports increased, offering cheaper alternatives, while local scrap retained a premium in limited segments.

Bangladesh: Bangladesh’s imported scrap market remained slow, with heavy rains continuing to disrupt construction activity and suppress buying interest. Rebar prices stood at BDT 77,000/t ($/t) exw in Dhaka and BDT 80,000-82,000/t ($/t) exw in Chattogram.

Turkiye: Turkish deep-sea scrap prices remained unchanged amid limited mill interest. HMS 80:20 was traded at $346-347/t, while EU-origin material ranged at $334-345/t CFR, showing stable sentiment and minimal imported scrap activity.

A market participant observed, “European offers for Turkiye at $338-340/t are unrealistic, with mills expecting $335-338/t for EU scrap and slightly higher for Baltic. US freights are high, $35/t for 35,000 t and $43-45/t for 20,000 t shipments.”

Price assessments

India: UK-origin shredded indicatives remained stable d-o-d at $365/t CFR Nhava Sheva.

Pakistan: UK-origin shredded indicative prices remains stable to $379/t CFR Qasim compared previous day.

Bangladesh: UK-origin shredded prices edged up by $1/t d-o-d to $374/t CFR Chattogram compared previous day.

Turkiye: US-origin HMS (80:20) bulk scrap prices were stable d-o-d at $347/t CFR Turkiye.