South Asia: Imported ferrous scrap market sees limited buying interest amid weak downstream demand

• Turkish buyers stay on sidelines amid weak finished sales
  
  
• India shows wary interest amid steel import duty rumours
  
  

The South Asian and Turkish scrap markets faced a quiet day, marked by cautious buyer activity and weak steel demand across regions. In South Asia, prices increased by $4-5/tonne (t), while Turkiye saw a slight decline of $1/t.

Indian buyers showed limited interest amid speculation of a potential steel import duty, while Pakistan saw modest restocking ahead of the holidays, despite subdued finished steel sales. In Bangladesh, sluggish construction activities and LC challenges dampened scrap demand. Meanwhile, Turkiye's market remained stagnant, with participants stepping back as mills grappled with low end-product sales.

Overview

India: Indian buyers displayed mild interest in imported scrap today, with a few inquiries surfacing amid rumours of a potential steel import duty, which fuelled expectations of price increases. However, buyer confidence remained subdued, with limited appetite for large volumes due to weak domestic steel demand.

UK-origin shredded indicatives were assessed at $383/t CFR Nhava Sheva, up by $5/t compared to the last close on Friday. Indicative offers for the same stood at $385-390/t CFR, while buyers targeted lower levels of around $378-380/t CFR. Moreover, HMS (80:20) offers from the UK/Europe stood at $360-362/t CFR, with West African-origin material at $365-375/t CFR, depending on loading.

Pakistan: Pakistani buyers showed some restocking activity ahead of the Christmas and New Year holidays, though major deals were scarce, with limited bookings reported at varied prices based on yard and quality. The finished steel market remained weak, with mills operating at 30-40% of their capacity. Rebar prices were heard at PKR 245,000-250,000/t ($880-898/t), while local scrap traded at PKR 140,000-142,000/t ($503-510/t).

UK-origin shredded indicatives inched up by $4/t to $384/t CFR Qasim compared to Friday. Offers for the same stood at $385-390/t CFR from premium yards, while some others were at around $380/t CFR.

Bangladesh: Bangladeshi buyers remained quiet today amid sluggish steel demand, caused by stalled infrastructure and construction activities. Persistent challenges in letter of credit (LC) openings further constrained market activity.

UK-origin shredded was assessed at $385/t CFR Chattogram, up by $5/t compared to the last close on Friday. Indicative offers for shredded from Singapore, Malaysia, and Indonesia stood at $390/t CFR Chattogram, while HMS (80:20) from the same origins was offered at $370/t CFR. African HMS (80:20) was heard at $350/t CFR.

In the domestic market, billet prices were reported at BDT 63,000/t ($527/t), rebar stood at BDT 74,000-76,000/t ($618/t) ex-Dhaka and BDT 80,000-81,000/t ($669-677/t) ex-Chattogram, while local scrap offers hovered at BDT 48,000-50,500/t ($401-422/t).

Turkiye: The Turkish imported scrap market remained subdued, with prices steady, as both buyers and sellers exhibited limited trading interest. Turkish mills held back on scrap purchases due to weak end-product sales for January, which limited demand.

In a quiet market with no new deals, sellers faced challenges in securing material flows to docks at current procurement prices, while mills leveraged the situation to pressure recyclers. Market sentiment leaned bearish, with expectations of further price drops, as suppliers may be compelled to sell to sustain operations.

US-origin HMS (80:20) bulk edged down by $1/t to $337/t CFR Turkiye compared to Friday, with indicative prices hovering at around $337-338/t CFR.

Price assessments

India: UK-origin shredded indicatives were assessed at $383/t CFR Nhava Sheva, up by $5/t compared to the last close on Friday.

Pakistan: UK-origin shredded indicatives inched up by $4/t to $384/t CFR Qasim compared to Friday.

Bangladesh: UK-origin shredded was assessed at $385/t CFR Chattogram, up by $5/t compared to the last close on Friday.

Turkiye: US-origin HMS (80:20) bulk edged down by $1/t to $337/t CFR Turkiye, compared to Friday.