- Asian market feels pressure on China weakness
- Turkiye steady as mills await demand clarity
South Asian scrap markets showed rangebound trends, with India and Bangladesh seeing cautious buying, Pakistan’s domestic m,arket trend subdued by China’s weakness, while Turkiye stayed steady as mills awaited clearer demand signals amid currency and freight cost pressures.
Market overview
India: India’s imported scrap trade remained limited, with prices easing after a brief uptrend over the past 2-3 days as the US Dollar strengthened sharply.
EU-origin shredded was heard at $370-375/t CFR, while UK HMS 80:20 was quoted at $335-340/t. Offers included Yemen bundles at $300/t and Kuwait HMS at $360/t, though buyers indicated interest closer to $350/t.
Pakistan: Pakistan’s imported scrap market remained slow, with sentiment tracking China’s downturn. Market participants noted that as long as Chinese prices remain under pressure, Pakistan’s market is likely to stay on the lower side. Some shredded cargoes from the UAE and EU were booked in the $381-394/t range. Buying activity picked up after a prolonged lull, driven by reduced basic scrap inventories at mills.
In the domestic market, local scrap was assessed at PKR 140,000/t ($), billet at PKR 200,000/t($), and rebar at PKR 236,000/t($). Imported offers were reported with UK shredded at $382-383/t CFR and EU shredded at over $385/t CFR.
China’s sharp declines over the past two days weighed heavily on outlook. The CFR Qasim-Mundra port gap stood at $10-15/t, further impacting trade competitiveness.
Bangladesh: Bangladesh’s imported scrap market edged slightly higher, with Australian shredded offers at $375/t and HMS 80:20 in containers at $355/t. US bulk was heard at $368-372/t CFR, with some shippers quoting $375/t.
However, persistent monsoon rains, tight credit conditions, and political uncertainty kept demand subdued as both buyers and sellers remained cautious, limiting fresh bookings and slowing overall trade momentum.
Turkiye: Turkish deep-sea scrap prices stayed steady as mills adopted a wait-and-see approach, having already secured most requirements. Market sentiment remained cautious, with some pointing to the weakening Euro as a downside risk, while others highlighted rising dry bulk freight costs that could limit recyclers from lowering offers further, keeping price movement largely sideways this week.
A participant noted that sentiment stayed weak on sluggish steel demand and muted exports. China’s decline and a weaker EUR/USD may pressure prices near $342-346/t CFR, risking further downside if demand fails to improve.
Price assessments
India: UK-origin shredded indicatives were assessed at $368/t CFR Nhava Sheva, stable d-o-d.
Pakistan: UK-origin shredded indicatives stood at $384/t CFR Qasim, up by $1/t d-o-d.
Bangladesh: UK-origin shredded prices edge down by $1/t d-o-d at $376/t CFR Chattogram.
Turkiye: US-origin HMS (80:20) bulk scrap prices were stable d-o-d at $346/t CFR Turkiye.
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