South Asia: Imported ferrous scrap market sees mixed trends d-o-d

• Indian market slows amid rupee depreciation
  
  
• Turkiye's prices decline as demand weakens
  
  

South Asia's scrap market presented a mixed scene today, with regional dynamics shaping demand and pricing trends.

India's import market remained sluggish, as buyers leaned on domestic procurement due to a bid-offer mismatch and the rupee's depreciation, which made imports less viable. Pakistan's market saw muted activity, with mills operating at reduced capacities amid limited trades and firm European shredded offers. In contrast, Bangladesh witnessed a surge in scrap demand driven by domestic shortages and rising rebar sales, leading to several import deals.

Notably, indicative prices of UK-origin shredded were down by $2/t d-o-d in India and Bangladesh, but Pakistan's tags remained stable.

Meanwhile, Turkiye's market softened further, with mills exerting pressure on sellers amid subdued demand. Prices of US-origin HMS (80:20) bulk edged down by $3/t d-o-d.

Overview

India: India's imported scrap market saw sluggish demand today, as buyers focused on domestic procurement, driven by a bid-offer mismatch due to higher seaborne offers. The depreciation of the Indian rupee further strained import viability, raising costs and keeping bids minimal. Indicative offers from the US and UK/Europe stood at $385/t CFR Nhava Sheva, while buyer interest remained below $380/t CFR.

HMS (80:20) from the UK/Europe was offered at $355-360/t CFR, with buyers targeting $350/t CFR. Meanwhile, HMS (80:20) from West Africa was quoted at $360-370/t CFR, depending on loading conditions.

One trader noted, "The strong dollar has upended the market, with a $10/t gap in pricing due to currency fluctuations. Customers are unresponsive, and deals have dried up."

Another trader added, "The market remains very slow, with only minimal volumes moving."

Pakistan: Pakistan's imported scrap market remained muted, with limited trades, as buyers sought lower prices. Shredded from the UK was heard at $388-390/t CFR Qasim, and suppliers resisted further reductions.

Domestic rebar prices rose slightly to PKR 240,000-245,000/t ($861-879/t), but discounts of PKR 2,000-3,000/t ($7-11/t) were commonly offered. Mills operated at 45-50% of their capacity due to subdued demand, while seasonal factors and a cautious approach post-holidays kept activity restrained.

European recyclers continued to offer firm shredded prices, but buyer interest hovered below workable levels, reflecting a challenging market environment.

Bangladesh: Bangladesh's imported scrap demand surged due to a domestic shortage and improved rebar sales. Many mills increased rebar prices by BDT 4,000-5,000/t ($33-41/t), with current rates at BDT 85,000-86,000/t ($699-707/t) ex-Dhaka and BDT 88,000-89,000/t ($723-732/t) ex-Chattogram.

A steel mill official attributed the price hike to local scrap shortages, noting steady rebar sales of 500-600 t daily, although market volatility remains a concern.

Local scrap prices ranged within BDT 52,000-55,000/t ($427-452/t).

Meanwhile, several deals for imported scrap were concluded, including 2,000 t of PNS HK at $380/t CFR, 2,000 t of US shredded at $368/t CFR, 1,000 t of HMS 90:10 from New Zealand at $370/t CFR, 500 t of rebar bundles from Japan at $388/t CFR, 1,000 t of HMS (90:10) from Brazil at $362/t CFR, 1,000 t of HMS bundles from Brazil at $340/t CFR, 1,000 t of AB bundles from Hong Kong at $350/t CFR, and 1,000 t of shredded 211 from Australia at $390/t CFR.

Turkiye: The Turkish imported ferrous scrap market saw a price dip, as mills leveraged subdued demand to push sellers for lower prices. Offers for US-origin HMS (80:20) were assessed at $343/t CFR, down $3/t d-o-d.

EU-origin material faced bids as low as $335/t CFR, while US-origin bids hovered around $340/t CFR. Recyclers resisted these price levels due to stable HMS collection costs in Europe, making lower price targets challenging. With limited demand and unsold cargoes pressuring the market, buyers and sellers remained at odds over pricing strategies.

A Mediterranean-region steel mill recently secured US-origin HMS (80:20) and shredded at $345/t and $365/t CFR, respectively. Additionally, another mill in the region booked an HMS (80:20) cargo from Europe at $333/t CFR.

Price assessments

India: UK-origin shredded indicatives were assessed at $383/t CFR Nhava Sheva, down by $2/t d-o-d.

Pakistan: UK-origin shredded indicatives were assessed stable d-o-d at $390/t CFR Qasim.

Bangladesh: UK-origin shredded stood at $391/t CFR Chattogram, down by $2/t d-o-d.

Turkiye: US-origin HMS (80:20) bulk was assessed at $343/t CFR Turkiye, down by $3/t d-o-d.