South Asia: Imported scrap index witnesses mixed trends d-o-d; Indian buyers silent - 18 July

The South Asian ferrous scrap index continued to experience mixed trends as the market witnessed fluctuations across different countries. In India, demand remained sluggish as buyers showed disinterest at current offer levels. Pakistan's market faced high offers and limited purchasing power among end-users, while local scrap shortages push prices upward.

In Bangladesh, post-Muharram market activity was moderate, affected by domestic steel market slowdown and financing challenges. Meanwhile, in Turkiye, stable deep-sea imported scrap prices persisted amid limited deal activity, with mills favouring Chinese billet offers over scrap due to cost advantages despite long lead times.

Overview

India: India's demand for imported scrap remained sluggish today due to buyers' disinterest at the current offer levels. Offers for shredded scrap from the US and UK/Europe were reported at $410-415/t CFR, while buyers were seeking prices of $400-405/t CFR. HMS (80:20) offers from the UK/Europe and West Africa ranged between $385-395/t CFR.

Pakistan: Today, Pakistan's imported scrap market faced challenges as suppliers maintained high offer levels, with the UK/Europe and the UAE shredded scrap at $425-435/t. Domestic rebar and billet prices remained stable, but major sales were lacking due to end-users' limited purchasing power. Local scrap shortages continued to push prices upward. With the market reopening post-Muharram, mills may push prices higher due to increasing production costs and declining raw material inventory.

Bangladesh: The Bangladeshi imported ferrous scrap market exhibited moderate activity, as buyers have not fully resumed operations following Muharram holidays. Additionally, a slowdown in the domestic steel market and challenges in financing imports have impacted scrap consumption. Indicative offers for shredded scrap from the UK and Europe were reported at $420-425/t CFR Chattogram, while HMS 80:20 was offered at $400-405/t CFR.

Turkiye: Turkish deep-sea imported ferrous scrap prices edged down amid limited deal activity. Offers for US-origin bulk HMS (80:20) were assessed at $391/t CFR. Market participants reported that none of the mills are currently focused on scrap. Instead, they are purchasing large volumes of billets from China. Turkish mills have found billet offers from China more attractive at current prices, despite facing long lead times when booking material from the region. As per sources there is no panic from buyer and seller side as there will be limited movement in prices.

Price assessments

India: UK-origin shredded scrap indicatives were assessed at $416/t CFR Nhava Sheva, up by $1/t d-o-d.

Pakistan: UK-origin shredded indicatives were assessed at $430/t CFR Qasim, up by $2/t d-o-d.

Bangladesh: UK-origin shredded prices were assessed at $425/t CFR Chattogram, down by $2/t d-o-d.

Turkiye: US-origin HMS (80:20) bulk prices were assessed at $391/t CFR Turkiye, down by $1/t.