- Indian buyers wary, mills favour sponge over scrap
- Demand soft in Pakistan amid rainfall, cautious sentiment
South Asia’s scrap markets remained quiet, with India cautious amid cheap domestic scrap, Pakistan facing weak demand, and Bangladesh witnessing selective buying. Turkish scrap prices held steady, though holiday closures may tighten supply in coming weeks.
Market overview
India: India’s imported ferrous scrap market stayed quiet today, with buyers avoiding new bookings. Many mills have shifted to higher sponge iron intake, up 50-60%, reducing scrap demand. South Indian buyers are also sourcing iron ore and pellets from Iran and the Middle East to meet their requirements.
Domestic scrap remains cheaper than imports, further pressuring demand. HMS 80:20 offers from the UK hover at $330-335/t CFR, while shredded scrap is indicated around $365/t CFR.
The market is in a wait-and-watch mode, with participants cautious amid uncertainty in domestic and global markets.
Pakistan: Pakistan’s imported ferrous scrap market remains subdued, with sentiment largely unchanged. Demand has been very weak in recent weeks, weighed down by rainy weather and limited government focus on the real estate and construction sectors.
At Port Qasim, UK-origin shredded scrap is currently offered around $375/t CFR. However, many suppliers are withholding offers, as Pakistan is offering higher realisations of $380-385/t for shredded scrap locally, making them reluctant to sell at lower levels.
Bangladesh: Bangladesh’s imported ferrous scrap market showed moderate activity, with buyers remaining selective.
Indicative CFR Chattogram prices are $340-345/t for Australian HMS 80:20 and about $370/t for Australian shredded scrap. Dhaka mills, not buying regularly, are quoting upto $375/t for shredded to secure material.
Offers for PNS and busheling from Singapore and Malaysia stand at $380-385/t, while bids remain lower at $375-378/t CFR.
Turkiye: Turkish deep-sea imported scrap prices remained largely stable today, as buyer targets fell short of sellers’ expectations. Weak rebar demand has kept Turkish mills from bidding higher for high-quality HMS 80:20 scrap.
Indicative tradable values for EU and UK-origin HMS 80:20 were reported between $320-325/t CFR and just below $345/t CFR.
Turkiye is on holiday today and tomorrow, further slowing market activity. Many UK and European yards are also preparing for 20-25 day holiday closures, likely reducing material flow into the Turkish market in the weeks ahead.
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 $377/t CFR Qasim, stable stable compared to previous day.
Bangladesh: UK-origin shredded prices were up d-o-d by $1/t at $373/t CFR Chattogram.
Turkiye: US-origin HMS (80:20) bulk scrap prices were assessed at $345/t CFR Turkiye, stable compared to previous day.
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