- Pakistan struggles with higher shipping surcharges
- Turkish prices remain steady amid cautious optimism
South Asia’s imported scrap markets presented a mixed picture, with regional sentiment shaped by freight challenges, seasonal slowdowns, and divergent buyer behaviour. Shredded scrap offers from the UK/Europe edged down by $2/tonne (t) in India, while remaining unchanged in Pakistan and Bangladesh.
India saw a marginal uptick in supply, as cargoes were diverted from Pakistan due to emergency shipping surcharges, yet buyer resistance kept trade activity sluggish. Pakistan struggled with inflated costs and muted steel demand, prompting sellers to reroute material elsewhere. Meanwhile, Bangladesh faced monsoon-related construction lulls and limited buying appetite, despite stable letter of credit (LC) conditions.
In contrast, Turkiye’s market remained relatively steady, supported by firm US-origin bulk trades and cautious optimism on short-term pricing. US-origin bulk HMS 80:20 offers to Turkiye also remained unchanged today.
Market overview
India: India’s imported scrap market saw limited activity, as buyers remained cautious amid weak finished steel demand and a widening bid-offer gap. The recent imposition of shipping surcharges on Pakistani-bound containers led traders to divert cargoes toward India, increasing supply pressure. However, Indian buyers continued resisting higher offers.
Shredded from the UK/Europe was offered at $370-375/t CFR Nhava Sheva, while bids hovered at around $360-365/t. A few sales were concluded at $365/t, but most negotiations stalled.
HMS 80:20 offers ranged from $345-355/t CFR, though buyers pushed for $340-350/t. With market direction unclear and the monsoon season approaching, sentiment stayed largely subdued.
Pakistan: Pakistan’s imported scrap market remained under pressure due to an emergency surcharge imposed by major shipping lines, pushing up landed costs and discouraging fresh bookings. Mills showed limited interest as weak steel demand, slow construction activity, and tight rebar margins continued to weigh on sentiment.
Offers for shredded from the UK/Europe climbed up to $380-385/t CFR Port Qasim, but most trades settled at $378-380/t, with bids capped at around $375/t. Buyers resisted higher prices, warning they could not pass on the cost amid competitive rebar markets.
Some sellers began diverting cargoes to India, where market conditions were more favourable, further limiting trade flow into Pakistan.
Bangladesh: Bangladesh’s imported scrap market stayed sluggish amid weak steel demand and the onset of the monsoon season, which dampened construction activity. Mills remained cautious, preferring to manage inventories rather than book fresh cargoes, despite no major issues with LC openings. Trade activity was thin, with a persistent bid-offer mismatch discouraging deals.
Offers for containerised shredded from Australia were heard at $375-380/t CFR Chattogram, HMS 1 at $360-365/t, and HMS 80:20 at $350-355/t CFR. While sellers remained active, buyer resistance and cautious sentiment kept the market quiet and overall tone soft.
Turkiye: The Turkish imported scrap market held steady with US-origin bulk HMS 80:20 at $347/t CFR, supported by limited but firm trades, including US-sourced cargoes to Izmir mills. Market sentiment stayed cautiously optimistic, with expectations of prices nearing $350-360/t CFR soon. However, futures on the London Metal Exchange (LME) neared spot prices, hinting at subdued medium-term confidence.
Deals included shipments from the US and Europe, with prices ranging within $337-347/t CFR for HMS and up to $367/t for shredded and PNS. Overall, the tone was firm but restrained.
Price assessments
India: UK-origin shredded indicatives were assessed at $367/t CFR Nhava Sheva, down by $2/t compared to the last close on Friday.
Pakistan: UK-origin shredded indicatives stood at $377/t CFR Qasim, unchanged compared to the last close on Friday.
Bangladesh: UK-origin shredded prices were assessed at $378/t CFR Chattogram, unchanged compared to the last close on Friday.
Turkiye: US-origin HMS (80:20) bulk scrap prices were assessed at $347/t CFR Turkiye, stable compared to the last close on Friday.
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