South Asia: Imported ferrous scrap market faces slowdown amid seasonal lulls, economic pressure

• Indian yards fully booked for January loadings

  
  
  

• Bid-offer gaps, soft rebar demand impact Turkiye
  
  

The South Asian imported scrap markets experienced a slowdown today, influenced by the holiday period, year-end liquidity issues, and limited offers. Prices were largely stable d-o-d; India and Bangladesh saw levels remaining unchanged, while there was a slight hike in Pakistan.

Overall, the market across South Asia faced challenges due to seasonal lulls and economic pressures. In India, buyers were cautious, with many yards fully booked for January shipments and activity expected to resume in early January. Pakistan's market was similarly subdued, with minimal trading and liquidity constraints dampening sentiment. Bangladesh faced challenges with letter of credit (LC) delays and banking restrictions, though rebar demand improved.

Meanwhile, Turkiye's market remained sluggish, with prices edging down d-o-d amid limited holiday-season activity.

Overview

India: India's imported scrap market remained moderate with stable prices d-o-d, as buyers adopted a cautious stance amid limited offers during the Christmas and New Year holidays. Many yards were reportedly fully booked for January loadings and are expected to resume offering in early January for February shipments.

Indicative offers for UK/Europe and US-origin shredded stood at $385-390/t CFR Nhava Sheva, while HMS (80:20) from the UK was quoted at $365/t CFR, with buyer interest at $360/t CFR.

A steel mill official noted, "We are offering discounts on rebars to clear inventory. At the moment, we prefer sponge iron to scrap due to an INR 1,000/t cost advantage for local material and INR 2,000/t for imported scrap."

A supplier stated, "No offers are being made as the market has entered holiday mode. Activity is expected to resume around 6 January."

An EU-based supplier echoed, "Scrap action is minimal during the holidays, and snowy conditions are expected to delay yard operations until 6 January."

Pakistan: Pakistan's imported scrap market remained slow, as the holiday mode and year-end liquidity constraints dampened activity. Despite this, prices inched up d-o-d.

UK shredded offers stayed firm at $390-393/t CFR Qasim, with UAE-origin HMS at around $385/t CFR, but trading volumes were minimal. Domestic scrap prices held at PKR 137,000-140,000/t, while rebar was at PKR 240,000-245,000/t, reflecting weak demand as mills resorted to forced sales.

Market sentiment stayed bearish, with mills operating at reduced capacities and buyers resisting elevated offers. Seasonal factors and liquidity challenges are expected to keep the market cautious in the near term.

Bangladesh: Bangladesh's imported scrap market faced persistent hurdles due to LC delays, banking restrictions, and a rising dollar rate, leading to constrained liquidity. Amid these challenges, imported scrap prices were stable d-o-d, as seasonal rebar demand improved, encouraging mills to increase production. However, limited scrap availability remained a significant bottleneck.

In the domestic market, rebar prices are rising steadily, with rates at BDT 78,000-79,000/t ex-Dhaka. In Chattogram, mills' quotes were at around BDT 81,000-82,000/t.

Local scrap prices held firm, with HMS at BDT 50,000/t and PNS at BDT 52,000/t, as mills grappled with tight supply amid growing demand pressures.

Turkiye: The Turkish imported scrap market remained sluggish, with prices of US-origin HMS (80:20) edging down by $1/t to $349/t CFR amid limited holiday season activity.

A wide bid-offer spread characterised the market, with Turkish mills targeting below $350/t CFR, while sellers aimed higher due to slow material flows. Mills adopted a cautious approach as rebar demand softened, and only those with low scrap inventories remained active.

However, sellers were firm on their offers, stating that mill demand might be stronger than indicated, though not enough to drive significant market momentum during the holiday season.

Price assessments

India: UK-origin shredded indicatives were assessed unchanged d-o-d at $388/t CFR Nhava Sheva.

Pakistan: UK-origin shredded indicatives were assessed at $394/t CFR Qasim, up by $2/t d-o-d.

Bangladesh: UK-origin shredded were assessed stable d-o-d at $392/t CFR Chattogram.

Turkiye: US-origin HMS (80:20) bulk was assessed at $349/t CFR Turkiye, down by $1/t d-o-d.