South Asia: Imported scrap markets remain subdued; Muharram holidays weigh on trading

• Indian mills prefer domestic scrap, sponge iron
• Weak rebar demand pressures Turkish scrap prices

South Asia’s imported scrap markets remained weak on 26 June as cautious buying, the Muharram holidays, and poor import viability weighed on trading. Meanwhile, lower Turkish deep-sea scrap bookings continued to pressure regional pricing and market sentiment.

India: The imported ferrous scrap market remained subdued, with buying activity continuing to weaken as mills shifted towards domestic scrap and sponge iron owing to better cost competitiveness. Market participants in central India indicated that domestic scrap remained the preferred raw material, while freight costs reduced the competitiveness of sponge iron.

Offer indications were heard at $325-330/t CFR for UK-origin HMS 80:20, $380-385/t CFR for UK-origin shredded scrap, $330-335/t CFR for HMS 80:20, and $385/t CFR for shredded scrap. Containerised shredded scrap prices remained largely unchanged on 25 June amid persistently weak buying sentiment.

Pakistan: Imported shredded scrap prices remained under pressure, with buyers maintaining a wait-and-watch approach amid ample offer availability. Bids for UK-origin shredded scrap were heard at around $405/t CFR Qasim against offers of approximately $410/t CFR. Trading activity remained largely muted due to the Muharram holiday, with most market participants staying away from fresh bookings.

Bangladesh: The imported scrap market remained under pressure, with buying activity limited as buyers targeted lower workable levels amid weak sentiment. Trading was further subdued due to the Muharram holiday. A deal for Brazil-origin containerised HMS 80:20 was reported at $362/t CFR Chittagong. Offer indications were heard at $365/t CFR for UK-origin HMS 80:20, $405/t CFR for UK-origin shredded scrap, and $370-375/t CFR for Australia-origin HMS 80:20 against bids at $360-365/t CFR.

Turkiye: Deep-sea imported scrap prices edged lower on 26 June as Turkish mills concluded several EU-origin bookings at lower levels amid weak rebar demand despite limited participation from US and Baltic suppliers. Reported deals for EU-origin HMS 80:20 were heard at $379-381/t CFR, indicating continued downward pressure on workable prices.

Market sentiment remained bearish amid weak rebar demand, with ex-works rebar prices around $565/t. Workable levels were heard at $370-375/t CFR for Europe- and Baltic-origin HMS 80:20 and up to $380/t CFR for US-origin material, with further downside expected.