- India scrap sentiment uncertain amid freight surge, weak rupee
- Turkiye scrap prices stable near $370-375/t amid cautious buying
South Asian imported scrap markets remained firm yet cautious on 9 March as Middle East tensions disrupted logistics and lifted freight costs. Pakistan and Bangladesh saw higher offers, while India stayed uncertain and Turkiye prices held stable amid cautious mill buying.
India: Imported scrap sentiment in India remained uncertain as Middle East tensions disrupted trade flows and raised logistics risks. Offers were heard around $355-358/t for UK-origin HMS (3% impurities), while Africa, Europe and US-origin HMS were indicated near $370/t, with Africa-origin HMS including diecast around $375/t. Freight rates have surged from about $40/container before the conflict to nearly $60-65, while crude oil prices have risen from around $90/bbl to $115/bbl, increasing shipment costs. Additionally, the rupee weakened to an all-time low above INR 92/$, adding further pressure on import costs.
In the domestic market, prices increased d-o-d after the government instructed that only 50% of gas/LNG supply will be available in the market. This may lead to around 10-15% production disruptions across India as rolling and heating lines face constraints, potentially tightening availability and pushing prices higher.
Bangladesh: Imported scrap sentiment in Bangladesh strengthened as suppliers directed more cargoes from Australia and New Zealand to the market. HMS 80:20 was heard around $370/t CFR, while UK-origin shredded offers were reported near $390/t CFR, with the increase largely attributed to the ongoing Middle East crisis impacting freight and supply flows.
Pakistan: Imported scrap sentiment in Pakistan remained firm d-o-d, with offers for UK-origin shredded heard around $405/t CFR Port Qasim while buyers indicated near $400/t. Recent deals included two UK-origin shredded cargoes at $405/t and $400/t CFR Qasim. Market participants noted $400/t as the minimum workable level from suppliers, with EU-origin material potentially trading above $400/t due to lower impurities and strong domestic demand in Europe pushing offers near $415/t CFR. Trading activity remained relatively quiet as the week opened.
Turkiye: Deep-sea imported scrap prices into Turkiye remained unchanged d-o-d on 9 March, with workable levels for US-origin HMS 80:20 heard around $370-375/t CFR as mills maintained cautious buying amid the Middle East conflict. Rising freight costs may support prices in the near term, while domestic scrap prices stayed stable in a slower market.
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