South Aisa: Imported ferrous scrap offers edge up slightly despite limited buying interest

• Indian buyers cautious amid weak steel demand
  
  
• Turkiye sees steady price increase in scrap
  
  

The South Asia's imported scrap markets showed mixed trends, influenced by currency fluctuations, demand shifts, and global market cues. India's market remained subdued due to weak finished steel demand and a rising dollar, prompting cautious buying.

Pakistan maintained stability with moderate rebar demand, supported by steady LC availability despite cash flow challenges. In contrast, Bangladesh's market stayed active, driven by pre-Ramadan restocking, though the sustainability of this momentum remains uncertain.

Meanwhile, Turkiye saw a steady price uptick fuelled by positive US domestic scrap expectations and robust restocking demand from mills.

Offers for shredded scrap from the UK/Europe remained stable in India, while edging up by $3/t in Pakistan and Bangladesh. US bulk HMS (80:20) offers to Turkiye moved up by $1/t d-o-d in Turkiye.

Overview

India: India's imported scrap market remained subdued as weak finished steel demand and the rising dollar, currently at 87.07, kept buyers on the sidelines. Market activity was slow, with participants adopting a wait-and-watch approach, hoping for some deals to materialise this week. The fluctuating dollar has made buyers cautious, preferring to hold off until currency movements stabilise.

A trader noted that uncertainties in the short term could lead to slight price declines, as overseas markets are not firm, prompting sellers to lower offers to maintain liquidity.

Shredded scrap offers from the UK/Europe and the US were assessed at $375-380/t CFR Nhava Sheva, while HMS (80:20) were at $350-355/t CFR from the UK/Europe. HMS (80:20) from West Africa ranged between $360-365/t CFR, depending upon container loading size.

Pakistan: Pakistan's imported scrap market remained stable with moderate rebar demand, though cash flow challenges persisted. However, buyers with strong LC flows faced no issues in opening new LCs, maintaining steady trade momentum. UK-origin shredded scrap was traded between $385-390/t CFR CFR. UAE-origin HMS stood at $365/t, fabrication scrap at $385/t, and shredded at $400/t CFR Qasim.

Local scrap prices were around PKR 143,000-144,000/t. Rebar prices held steady, with cash-based deals at PKR 245,000/t and credit-based transactions ranging between PKR 250,000-252,000/t.

Despite financial constraints, the market maintained a balanced tone, supported by consistent LC availability and stable rebar demand, keeping import activities moderately active.

Bangladesh: Bangladesh's imported scrap market stayed active with steady demand, fuelled by pre-Ramadan restocking.

Mills showed heightened interest, actively assessing offers, particularly for cheaper, near-shore materials. While market sentiment remains bullish, prices have been mostly stable with slight adjustments. The durability of this momentum beyond the festive season remains uncertain.

Offers for UK/Europe-origin shredded scrap were heard at $385-390/t CFR Chattogram, while HMS (80:20) was quoted at $370-375/t CFR.

Turkiye: Turkiye's imported scrap market saw a steady price increase supported by positive US domestic scrap settlement expectations and Turkish mills' restocking demand. Offers for US-origin bulk HMS (80:20) was assessed at $350/t CFR, up $1/t d-o-d.

US/Baltic-origin HMS (80:20) was offered at $349-$352/t CFR, with a US-origin offer at $360/mt CFR amid bullish sentiment ahead of February's domestic buyweek.

A Baltic-origin deal was reportedly booked by an Iskenderun mill at $349/t CFR for HMS (80:20) and $369/t CFR for shredded scrap remained unconfirmed.

EU-origin HMS (80:20) saw indicative values at $345-346/t CFR.

HMS collection costs in the Benelux region stood at Euro 285/t delivered to docks.

Price assessments

India: UK-origin shredded indicatives were assessed at $375/t CFR Nhava Sheva, unchanged compared to last closed on Friday.

Pakistan: UK-origin shredded indicatives were at $385/t CFR Qasim, up by $3/t compared to last closed on Friday.

Bangladesh: UK-origin shredded was assessed at $388/t CFR Chattogram, up by $3/t in comparison with last closed on Friday.

Turkiye: US-origin HMS (80:20) bulk scrap edged up by $1/t to $350/t CFR Turkiye compared to the last closed on Friday.