South Asia: Bangladesh sees active trades; India, Pak face subdued buying interest

• Bangladesh thrives amid domestic scrap shortages
  
  
• Pakistan faces cautious trading amid poor steel sales

  
  
  

The South Asian scrap markets continued to display contrasting trends across India, Pakistan, and Bangladesh.

In India, demand for imported scrap remained subdued due to bid-offer mismatches, currency fluctuations, and competitive domestic scrap prices. Pakistan's market was muted, with limited trading and cautious buyer sentiment. In contrast, Bangladesh saw increased activity, driven by domestic shortages and improved steel demand.

Notably, prices of UK-origin shredded were stable d-o-d in all three regions.

Meanwhile, Turkiye's market was stagnant, with US-origin scrap prices holding steady while Turkish mills pushed for lower rates from European suppliers.

Overview

India: India's demand for imported scrap remained muted due to limited buying interest, driven by bid-offer mismatches, currency fluctuations, and competitive domestic scrap prices. Buyers adopted a cautious stance amid expectations regarding Union Budget announcements and concerns over a potential safeguard duty on finished steel imports.

Weak domestic demand further dampened sentiment, with rebar prices slipping. A weakening rupee and high freight costs added to buyer apprehension, restricting market activity.

Indicative shredded offers from the UK/Europe stood at $380-385/t CFR Nhava Sheva, while HMS (80:20) was offered at $360/t CFR, with buyers bidding $350-355/t CFR. West African HMS (80:20) offers ranged within $360-370/t CFR based on container loading, and HMS 1 from Kuwait was offered at $380-385/t CFR Nhava Sheva/Mundra, with $385-390/t CFR for Chennai, as mills bid $375-378/t amid ongoing negotiations.

Pakistan: Pakistan's imported scrap market remained subdued, with buyers pushing for lower prices amid limited trading. UK-origin shredded was assessed at $390/t CFR Qasim, with deals concluded at $380-389/t CFR.

UAE-origin HMS was traded at $365-370/t CFR, while mills operated at 45-50% of their capacity due to weak demand and cautious post-holiday sentiment.

Seasonal scrap shortages provided marginal support, but discounts on finished steel reflected poor sales. Despite these challenges, Pakistan's sentiment was slightly better than India's, owing to limited domestic scrap availability driving some activity.

Bangladesh: Bangladeshi buyers showed more activity compared to India and Pakistan, driven by domestic scrap shortages, improved steel demand, and a slight ease in letter of credit (LC) openings.

Indicative offers for Australian-origin shredded ranged at $380-385/t CFR Chattogram, while HMS (80:20) was offered at $360-365/t CFR. LMS bundles from Malaysia and the Philippines were priced at $335-340/t CFR, and PNS from Hong Kong was offered at $380/t CFR.

Turkiye: Turkiye's imported scrap market remained stagnant. US-origin bulk HMS (80:20) prices held firm at $343/t CFR. US recyclers resisted price cuts amid a recovering domestic market, while Turkish mills intensified pressure on European suppliers, targeting $330-335/t CFR for HMS (80:20).

European recyclers showed flexibility, with expectations of prices dropping to $330/t CFR. Short-sea scrap prices stayed at $320/t CFR, supported by limited port availability.

Despite low buying urgency due to billet alternatives from China, sources expected a possible price uptick in spring, as sellers chose to hold material for better rates.

Price assessments

India: UK-origin shredded indicatives were assessed unchanged d-o-d at $383/t CFR Nhava Sheva.

Pakistan: UK-origin shredded indicatives were assessed at $388/t CFR Qasim, unchanged d-o-d.

Bangladesh: UK-origin shredded stood at $391/t CFR Chattogram, unchanged compared to yesterday.

Turkiye: US-origin HMS (80:20) bulk was assessed stable d-o-d today at $343/t CFR Turkiye.