South Asia: Imported ferrous scrap market remains weak amid uncertain global cues

• Political disruptions, low steel demand stall Pak trade
  
  
• Oversupply pressures drag down Turkiye prices further
  
  

The South Asian and Turkish imported scrap markets faced continued weak demand amid political uncertainties. Indian market remained subdued as buyers preferred domestic scrap over imports, while Pakistan saw minimal activity due to political unrest disrupting supply chains. In Bangladesh, sluggish steel demand and limited project activity kept scrap prices under pressure, with buyers holding back on new bookings. Meanwhile, Turkiye's scrap market continued to slide, driven by oversupply and competitive billet offers from China and the CIS region, forcing mills to bid aggressively low.

Imported scrap offers fell by $1/t in Pakistan and Bangladesh but remained unchanged in India. Turkiye's bulk scrap offers witnessed a drop of $3/t d-o-d.

Overview

India: India's imported scrap market remained subdued as buyers opted for domestic scrap, available at similar rates, amid volatility and uncertainty in global trends. Offers for UK/Europe-origin shredded scrap were heard at $380-385/t CFR Nhava Sheva, while HMS (80:20) from the same regions stood at $360-365/t CFR and $365-375/t CFR from West Africa.

A steel mill official informed, "The international market is weak, and we are getting shredded locally at INR 37,000/t, which is comparable to imported scrap after adding freight and other costs. With steel prices under pressure and no changes in import duties, the market is unlikely to improve soon.

Another mill representative echoed similar sentiments, stating, "Imports are limited as local scrap intake remains high, and production levels are steady."

Pakistan: Pakistan's imported scrap market remained muted today, with no significant activity as political protests in the Punjab region led to near-lockdown conditions, halting trade and transport. Offers for UK/EU-origin shredded scrap stood at $385/t CFR Qasim, but workable levels were pegged around $382-383/t CFR.

Local scrap prices hovered at PKR 140,000/t, while rebar traded at PKR 245,000-250,000/t in Karachi and PKR 245,000/t in Punjab.

Ongoing unrest and motorway closures disrupted supply chains, delaying essential goods, including metal scrap, particularly in northern regions. Mills are cautious, expecting limited market activity through December, with concerns over rising energy costs, unsold inventories, and declining steel demand adding to the bearish outlook.

Bangladesh: Bangladesh's imported scrap market continued to face downward pressure amid sluggish steel demand, driven by a lack of new government projects and reduced production, with steel plants operating at only 50% capacity.

Recent offers for EU/UK-origin shredded scrap stood at $385-390/t CFR Chattogram, while Australian HMS 1 was offered at $376-378/t CFR, depending on LC terms.

Finished steel sales remain slow, with billets at BDT 66,000-67,000/t and rebar trading at BDT 78,000-80,000/t ex-Dhaka and BDT 82,000-84,000/t ex-Chattogram. Buyers are in a wait-and-watch mode, expecting further price corrections, while suppliers hold back on bulk offers due to unfavourable market conditions.

Turkiye: The Turkish imported ferrous scrap market weakened further today, with deep-sea scrap prices continuing to slide amid bearish sentiment and oversupply pressure from European recyclers. Offers for US-origin bulk HMS (80:20) were at $341/t CFR, marking a $3/t drop, with EU-origin deals closing at $337/t CFR.

Despite expectations of a seasonal price increase, oversupply and cheaper billet offers from China and CIS countries kept prices under pressure. Turkish mills were seen bidding aggressively low, aiming for $335/t CFR, the lowest since November 2022. Sellers remained hesitant, citing reduced scrap flows from Europe due to harsh winter conditions but struggled to secure higher prices.

Price assessments

India: UK-origin shredded indicatives were assessed stable d-o-d at $385/t CFR Nhava Sheva.

Pakistan: UK-origin shredded indicatives edged down d-o-d by $1/t to $385/t CFR.

Bangladesh: UK-origin shredded prices edged down by $1/t to $388/t CFR Chattogram compared to to the previous day.

Turkiye: US-origin HMS (80:20) bulk prices were assessed at $341/t CFR Turkiye, down by $3/t d-o-d.