South Asia: Imported ferrous scrap market remains subdued d-o-d

The South Asian ferrous scrap markets experienced a subdued day, marked by weak demand and fluctuating price trends across key regions. In India, mills held back from purchases amid soft steel demand and competitive domestic alternatives, while Pakistan's market remained slow due to monsoon-related construction lulls. Bangladesh faced financing issues that muted scrap activity, and the Turkish market saw a cautious start to the week as buyers and sellers grappled with falling billet prices and steady scrap offers.

Overview

India: Indian mills stayed on the sidelines due to weak steel demand and the availability of more affordable domestic alternatives. Shredded scrap offers from the US and UK/Europe hovered around $390-395/t CFR Nhava Sheva, while HMS (80:20) was priced at $365-370/t CFR.

Pakistan: Demand for imported scrap in Pakistan remained sluggish as weak finished steel sales persisted during the monsoon season. Shredded scrap offers from the UK and Europe were heard in the $395-400/t CFR Qasim range.

Domestically, local scrap prices hovered between PKR 145,000-150,000/t, while billets were priced at PKR 210,000-215,000/t, and rebars at PKR 245,000-250,000/t ex-works.

A steel mill official commented, "The bearish trend continues, but there's hope that once the monsoon ends, construction activities will pick up, along with steel and scrap trades."

Bangladesh: Imported scrap demand in Bangladesh remained muted due to financing challenges and weak steel demand. Shredded scrap offers from the UK and Europe were assessed at $400-405/t CFR Chattogram, while HMS (80:20) scrap prices were in the $390-395/t CFR range.

Turkiye: The Turkish imported scrap market remained steady, with deep-sea ferrous scrap prices unchanged as the week began slowly. Buyers exercised caution, while sellers held firm on their offers. Turkish imports of premium HMS (80:20) were assessed at $370/t CFR, with no shift in prices reported. Despite the quiet start, sellers remained optimistic, expecting prices to hold, particularly as billet prices stayed flat at $480/t CFR Turkiye.

However, mills were cautious due to falling billet prices, and a tug-of-war emerged between sellers trying to maintain margins and buyers aiming for better deals. The scrap-to-rebar spread stood at $208/t, allowing mills to focus on scrap as long as margins remained favourable. Asian market trends and weakening iron ore prices also influenced sentiment. Despite the stagnant activity, sellers felt confident that prices would not dip below $370/t CFR, with the firm US and Baltic markets supporting stable scrap offers

Price assessments

India: UK-origin shredded scrap indicatives were up by $1/t to $395/t CFR Nhava Sheva from previous day.

Pakistan: UK-origin shredded indicatives down by $2/t to $400/t CFR Qasim from previous day.

Bangladesh: UK-origin shredded prices down by$1/t at $403/t CFR Chattogram from previous day.

Turkiye: US-origin HMS (80:20) bulk prices fell by $1/t to $370/t CFR Turkiye from previous day.