South Asian imported scrap demand remains subdued while Turkiye drags prices lower

• Indian buyers target lower HMS booking levels
• Buyers in Pakistan, Bangladesh show low buying interest 

South Asian imported steel scrap markets on 23 June reflected weak sentiment across India, Pakistan, and Bangladesh amid poor steel demand and cautious buying. Turkish deep-sea scrap prices softened further, while buyers across South Asia continued targeting lower levels amid ample offer availability.

India: The imported ferrous scrap market remained subdued, with buying activity limited as most mills found prevailing offer levels unviable. Chennai-based buyers were largely targeting $330-335/t CFR for HMS 80:20, while a few mills with immediate requirements were willing to pay up to $340-345/t CFR.

Deal indications included Africa-origin HMS 80:20 at $335/t CFR Mundra and Brazil-origin HMS 80:20 (2% impurities) at $325/t CFR Nhava Sheva. Offer indications were heard at $345/t CFR for Europe-origin HMS 80:20 (1.5% impurities), $383/t CFR for UK-origin shredded scrap, $385/t CFR for EU-origin shredded scrap, and $335/t CFR for Africa-origin HMS 80:20.

Pakistan: Imported shredded scrap sentiment softened in Pakistan, with buyers remaining cautious amid ample offer availability. Buyers were targeting around $410/t CFR Qasim, while offer indications were heard at $414/t CFR. A deal for approximately 500 t of near-arrival UK-origin shredded scrap was reported at $420/t CFR Qasim late last week.

Bangladesh: The imported scrap market remained quiet, with buyers showing limited interest amid weak steel demand and poor import viability. Offer indications were heard at $407-410/t CFR for UK-origin shredded scrap and $365-370/t CFR for UK-origin HMS, although market participants reported little response from buyers.

Turkiye: Deep-sea imported scrap sentiment weakened further, with Turkish buyers remaining cautious amid persistently weak rebar demand and limited finished steel sales. Market participants reported that mills were delaying fresh bookings in anticipation of lower scrap prices, resulting in a sharp decline in workable levels over the past few days.

Additional downward pressure came from the depreciation of the euro and pound against the US dollar, improving export competitiveness for UK and European suppliers. Market sources expect more offers to emerge from Europe, with HMS 80:20 indications heard below $380/t CFR Turkiye, while US-origin material was estimated at $380-385/t CFR. Some participants expect prices to test $370-375/t CFR as mills seek to restore margins and maintain an adequate spread between scrap and finished steel prices.