- India sees selective purchases amid mills’ preference for local scrap
- Pakistan market firm even as mills struggle with cash flow constraints
Imported scrap markets across South Asia remained firm on 15 September, with India and Pakistan seeing selective buying, while Bangladeshi prices remained elevated. Turkish prices strengthened on active mill procurement and higher deep-sea scrap deals.
India: The imported scrap market remained firm d-o-d, with a Costa Rica-origin HMS 60:40 cargo booked at $335/t CFR Chennai for November arrival. Australian offers were heard at $365-370/t for HMS and $390-400/t for shredded scrap, while African HMS 80:20 was offered at $375-380/t CFR Mundra.
However, buying interest remained selective, with some mills continuing to meet requirements through domestic scrap. Shredded scrap was offered at $410-420/t, while prices could remain stable to slightly lower in the near term as the festive season approaches.
Pakistan: Imported scrap market remained firm d-o-d. Reportedly, 500 t of Brazil-origin sheared HMS reportedly purchased at $393/t CFR Qasim. Around 1,000 t of UK-origin shredded scrap was also sold at $417-418/t CFR, while European shredded offers were heard at $424-425/t. The last reported EU-origin shredded deal was at $418/t for 250 t.
However, cash-flow constraints and selective mill operations have weighed on local scrap prices. Rising electricity costs and heavy surcharges are also prompting production cuts, as mills face difficulty absorbing the higher cost burden. Current offers stood at $390-400/t for HMS 80:20, $400-410/t for hand-loaded HMS, and $415-425/t for shredded scrap.
Bangladesh: The imported scrap market remained firm, with Brazil-origin shredded scrap booked at $400/t CFR Chattogram and HMS 90:10 at $380/t. UK/EU shredded offers hovered around $400/t, while HMS was offered at $370-375/t.
Turkiye: Deep-sea imported scrap prices strengthened d-o-d, with fresh deal activity pushing prices to their highest levels since mid-June. A US-origin HMS 80:20 cargo was reportedly booked by an Turkiye-based mill at $395/t CFR, a level widely considered repeatable by market participants. Strong buying interest and multiple reported transactions continued to support bullish sentiment.
Additional deals included Baltic-origin HMS 80:20 cargoes reportedly booked at $386/t CFR and $390/t CFR by Marmara-based mills, while an EU-origin cargo was heard sold at $386.5/t CFR to an Turkiye-based mill. Market participants indicated that healthy mill demand and active procurement for October requirements continued to support higher scrap prices.
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