South Asia: Buyers remain cautious following price hike; Turkish market remains steady
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South Asian ferrous scrap offers witnessed a slight uptick today; however, buyers across markets remained cautious. In India, buyers took a conservative stance amid concerns over price volatility, while in Pakistan sluggish steel sales and liquidity issues dampened scrap demand. Bangladeshi buyers remained largely inactive due to weak construction activity and political uncertainty. The Turkish market held steady following a strong week, with domestic rebar demand supporting scrap purchases even as sellers anticipate further price increases.
Overview
India: Indian buyers adopted a wait-and-see approach today concerned about potential price volatility and uncertain if the current levels will hold or decline. Indicative offers for shredded scrap from the US and UK/Europe were assessed at $400-405/t CFR Nhava Sheva, while HMS (80:20) from the UK/Europe and West Africa was heard at $380-385/t CFR.
Offers for HMS 1 and PNS from Peru and Latin America stood at $392-397/t CFR, with blue steel at $415-417/t CFR.
A trader noted, "The market is silent today; buyers are cautious, questioning the sustainability of the current price hike."
Another trader observed "Some buyers are holding off, while others are considering booking due to pent-up demand ahead of the festive season."
A trader from north India said, "We sold a lot of material from West Africa at $365-370 last week, but now, with higher prices, buyers are showing resistance."
A steel mill official noted, "We are booking in small quantities and will wait for price stability before making bigger commitments."
Pakistan: In Pakistan, demand for imported scrap remained sluggish today due to subdued steel sales, delayed payments, and liquidity challenges. Indicative offers for shredded scrap from the UK/Europe were reported at $405-410/t CFR Qasim.
Bangladesh: Bangladeshi buyers stayed on the sidelines today, with no firm offers or deals reported. Weak construction activity and low purchasing interest from rebar sellers kept demand muted, as buyers remained cautious amid economic instability and political uncertainty, despite rising global offers.
Indicative offers for shredded scrap from the UK/Europe were at $405-410/t CFR Chattogram, with HMS (80:20) at $390-395/t CFR.
A trader said, "Chinese demand pushed both finished product and scrap prices high last week. Market participants are very cautious about the right time to procure."
Turkiye: Turkish deep-sea imported scrap prices remained largely stable today at $385/t CFR, after completing a bullish week. Turkish mills, driven by strong domestic rebar sales, continued to secure scrap deals, with US-origin HMS (80:20) booked at $385-386/t CFR for November shipments. Mills were prioritising domestic rebar sales over exports, as prices reached around $630-635/t exw supported by ongoing demand. Sellers are holding off on offering scrap, anticipating further price hikes, while European exporters are firm on $385/t CFR for HMS (80:20) amidst strong rebar demand and elevated dock collection prices in Europe.
Price assessments
India: UK-origin shredded scrap indicatives inched up by $1/t to $404/t CFR Nhava Sheva compared to last closing on Friday.
Pakistan: UK-origin shredded indicatives edged up by $2/t to $406/t CFR Qasim compared to last closing on Friday.
Bangladesh: UK-origin shredded prices were at $407/t CFR Chattogram, up by $1/t compared to last closing on Friday.
Turkiye: US-origin HMS (80:20) bulk prices remained unchanged at $385/t CFR Turkiye compared to last closing on Friday.
