- Euro gains pushing Turkish scrap offers higher
- Pakistan’s scrap market sluggish amid Ramadan
The South Asian imported scrap market remained sluggish across regions, with weak demand, liquidity constraints, and Ramadan-related slowdowns weighing on sentiment.
In India, buyers resisted higher offers despite improved finished steel sales, citing ample domestic scrap supply and currency concerns. Pakistan’s market saw minimal activity as mills held back purchases amid liquidity issues and shutdowns ahead of Eid. Bangladesh faced a similar slowdown, with high offers meeting buyer resistance and limited LC openings restricting fresh bookings. Meanwhile, Turkiye’s scrap market remained stable, but European sellers pushed for higher prices due to a strengthening Euro, making negotiations tougher for Turkish mills.
Overview
India: India’s imported scrap market remained sluggish due to weak demand, tight liquidity, and an increasing bid-offer gap. UK/European shredded was heard at $375-380/t CFR Nhava Sheva, but buyers kept bids lower at $365-370/t, while HMS (80:20) offers stood at $350-355/t CFR. Despite improved finished steel sales and rising Turkish scrap prices, Indian buyers refrained from accepting higher offers, citing ample domestic scrap supply and currency devaluation concerns.
Traders noted that UK/EU-origin shredded and HMS remained unworkable due to high landed costs, with no significant buying interest. With Holi and the fiscal year-end approaching, market activity is expected to stay muted, limiting fresh imports in the near term.
Pakistan: Pakistan’s imported scrap market remained weak as Ramadan slowed buying activity, compounded by liquidity constraints and subdued steel demand. Mills resisted higher offers, keeping bids below seller expectations. UK/European shredded was offered at $380-382/t CFR Qasim, but buyers sought $375-380/t. UAE-origin shredded was quoted at $385-390/t CFR, while HMS hovered at $358-360/t CFR.
Market sentiment stayed sluggish, with many melting units in Lahore and Gujranwala shutting down for Ramadan and upcoming Eid holidays.
Rebar prices varied from PKR 240,000-250,000/t based on payment terms. Payment delays and weak liquidity persisted, with no major changes expected until post-Ramadan, when demand may start recovering.
Bangladesh: Bangladesh’s imported scrap market remained sluggish as Ramadan dampened buying interest, with LC openings continuing at a slow pace. Buyers pushed back against high offers, with Australian/New Zealand shredded at $375-380/t CFR, HMS from Australia at $360-365/t CFR, and Singapore PNS bid at $380/t CFR against offers at $390/t CFR.
Weak construction activity kept market recovery expectations low until after Ramadan. Despite slight improvements in LC conditions, sentiment remained muted, with limited deep-sea bulk inquiries. A trader noted a price gap of at least $10/t, making current offers unworkable for buyers or sellers.
Turkiye: The Turkish imported scrap market remained stable, but European seller targets climbed due to a sharp appreciation of the euro against the US dollar. While tradable values for US/Baltic-origin HMS (80:20) were mostly at $365-367/t CFR, European recyclers pushed offers to $370/t CFR and above.
EU-origin scrap was quoted at $360-363/t CFR, with sellers firming their stance amid tight export availability and stronger domestic demand. Turkish mills struggled to meet these higher offers, with sources indicating resistance but acknowledging limited bargaining power as the euro continued to strengthen.
Price assessments
India: UK-origin shredded indicatives were assessed stable d-o-d at $376/t CFR Nhava Sheva.
Pakistan: UK-origin shredded indicatives stood at $382/t CFR Qasim, unchanged d-o-d.
Bangladesh: UK-origin shredded indicatives were inched up by $1/t d-o-d to $384/t CFR Chattogram.
Turkiye: US-origin HMS (80:20) bulk scrap prices were kept unchanged at $367/t CFR Turkiye.
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