- Eid expected to slow down scrap trading in Pakistan
- Rising freights keep traders confused about quoting new offers
South Asian imported scrap markets showed mixed sentiment, with cautious buying in India and firm demand in Bangladesh and Pakistan. Turkish buyers adopted a wait-and-watch approach. Rising freight costs and supply disruptions linked to the Middle East situation continued to influence trade flows and pricing expectations across markets.
India: Imported scrap market sentiment in India remained cautious d-o-d, with trading activity largely subdued as buyers resisted higher offers. Indicative Oceania-origin CFR prices on 18 March were heard at $370/t for HMS 80:20, $380/t for HMS 90:10, $390/t for shredded, and $400/t for PNS CFR Chennai.
Domestic supply conditions have tightened due to reduced vessel dismantling at Alang and gas shortages impacting industrial activity.
Shredded deals have been largely absent for two weeks, with buyers resisting higher offers. Trading may remain slow due to the financial year-end and Eid al-Fitr, unless suppliers ease offers and buyers raise bids.
Pakistan: Imported shredded scrap sentiment remained firm, with UK-origin shredded heard around $408-410/t CFR Qasim, while PNS was indicated near $410-415/t CFR.
Buying activity has strengthened as supply disruptions from the Middle East redirected mills toward European-origin cargoes, tightening availability and pushing workable levels higher.
As a result, prices have risen to around $410-420/t CFR, maintaining a premium of about $25-30/t over India. However, trading activity may slow over the next 10-15 days due to the upcoming Eid al-Fitr holidays.
Bangladesh: Imported scrap sentiment remained firm, supported by steady demand though mills kept offers open amid uncertain freight. Indicative prices from Australia were $380/t for HMS 80:20, $388-390/t for HMS 90:10, $400/t for shredded, and $410-415/t for PNS CFR.
Domestic rebar prices in Dhaka and Chattogram were heard around BDT 88,000-93,000/t ($717-758/t) exw, while billet remained stable at BDT 75,000-76,000/t ($611-619/t) exw.
Local ship scrap in Chattogram was indicated near BDT 56,000-58,000/t ($456-472/t) exy.
Market sources noted firm freight from Australia, Hong Kong, and Singapore limiting mills’ margins while purchasing scrap at high prices.
Many overseas traders adopted a wait-and-watch approach amid uncertain freights for Chattogram.
Turkiye: Deep-sea imported scrap prices edged down to around $380-382/t CFR, with mills maintaining a cautious stance amid rising freight costs and uncertain trade conditions. Most buyers were reluctant to pay above $370-375/t CFR, keeping trading activity limited.
Market sentiment was also pressured by tighter margins, with the scrap-to-rebar spread narrowing to about $180-185/t, below the preferred $200/t level. Weak finished steel demand and softer export sales to CIS and European markets have further weighed on buying appetite.
However, market sources noted that persistently high freight rates could eventually push scrap prices higher if mills are forced to adjust procurement levels.
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