- Turkish mills inactive; freight hike pressures scrap
- Mills in Pakistan, Bangladesh remain cautious
South Asia’s imported scrap market stayed stable this week as mills in Pakistan and Bangladesh remained cautious, while India resisted higher offers amid weak steel demand. Overall, prices held steady with minimal trade activity and limited buying interest.
Turkiye: Turkish deep-sea scrap import market stayed quiet through the week with mills largely inactive during the seasonal slowdown. Trading volumes were thin, with HMS 80:20 holding steady early in the week at $346-347/t CFR, while EU-origin cargoes hovered in the $334-345/t CFR range. Limited demand, vessel shortages, and weak finished steel prices kept sentiment subdued.
By week’s end, US-origin HMS 80:20 slipped 1% to $345/t CFR as freight rates rose $10-15/t and some US sellers diverted cargoes to domestic markets for better returns. Ample European supply versus restricted US availability further pressured sentiment, leaving Turkish buyers cautious.
India: Imported scrap market stayed weak through the week as competitive domestic scrap kept buyers away from imports. Offers for HMS 80:20 for UK/EU stayed at $325-330/t CFR but demand was thin and bulk cargoes remained unworkable due to weak finished steel demand. Falling steel prices further dampened sentiment and reinforced buyer resistance to higher offers.
Pakistan: Pakistan’s imported scrap market remained quiet through the week, with mills showing little buying interest amid weak demand and a cautious stance. Shredded offers hovered around $378-384/t CFR Qasim, with UAE HMS 80:20 at $375/t and limited busheling offers at $390-395/t. Small inquiries were heard near $376-378/t, but most mills stayed sidelined.
Local scrap stayed under pressure at PKR 135,000-140,000/t ($478-496/t), while imports offered cheaper alternatives, helped by tax efficiency on value addition. Overall, shredded prices were stable at $379/t CFR, unchanged w-o-w, reflecting muted sentiment and minimal trade activity.
Bangladesh: Bangladesh’s imported scrap market stayed slow as rains curbed construction and weak steel demand limited buying. Mills preferred short-sea cargoes, while deep-sea offers faced wide bid-offer gaps.
Rebar demand stayed weak at BDT 77,000-83,000/t ($633-682/t). Australian shredded was offered $380/t CFR against bids at $370/t, while UK/EU shredded settled at $374/t CFR, up 1% w-o-w.
Japan: H2 export prices held steady at JPY 42,000/t ($283/t) FOB, with Vietnam demand keeping offers at $320-325/t CFR against bids of $310-315/t. Despite weak construction, demand stayed moderate, and typhoon impact on Vietnam was limited.
Tokyo Steel cut H2 purchase prices by JPY 500/t from 27 Aug, revising Okayama and Kansai to JPY 39,000/t and Takamatsu to JPY 37,000/t.
Vietnam: Deep-sea bulk market stayed quiet on weak construction demand and wide bid-offer gaps, though H2 bids stood at $315/t CFR after Tokyo Steel’s cuts. A northern mill preparing to restart could lift demand in the medium term.
UAE: BigMint’s UAE processed HMS index slipped AED 12/t ($3/t) w-o-w to AED 1,210/t ($329/t) as domestic sentiment softened. HMS 80:20 eased to AED 1,160-1,190/t, while shredded held firmer at AED 1,270-1,290/t on selective demand.
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