South Asia: Imported ferrous scrap market sees mixed trends, outlook bearish

• Pakistan faces slow buying amid cash flow issues
  
  
• Turkish scrap market muted; activity may resume next week
  
  

The South Asian scrap market displayed mixed sentiments amid the holiday season, with limited activity across major regions. In India, indicative prices of UK-origin shredded were stable d-o-d, but they declined by $3/t and $1/t d-o-d in Pakistan and Bangladesh.

India's market remained subdued with moderate demand and limited offers, while Pakistan faced sluggish buying due to cash flow issues. In Bangladesh, steady local demand and improved banking operations supported the market, though buyer reluctance capped activity.

Meanwhile, Turkiye's market stayed muted as participants returned from holidays, with balanced supply-demand dynamics hinting at steady prices ahead. Bulk US-origin HMS (80:20) remained stable d-o-d.

Overview

India: India's imported scrap market remained muted, with moderate demand, as subdued buyer interest met limited supplier offers amid the holiday season.

Shredded offers were assessed at $385-390/t CFR Nhava Sheva, while HMS (80:20) from the UK/Europe stood at $360-365/t CFR and $365-375/t CFR for West African material.

A trader noted, "The market is still slow. The holiday mood continues, and business has become challenging. India prices are not supportive."

A steel mill official added, "The market remains subdued. We are buying local scrap and imported material in small quantities. Recently, we secured 500 t of Hong Kong bales at $340/t and Australian shredded at $370/t."

Pakistan: Pakistan's imported scrap market remained sluggish amid the New Year holidays, low demand, and ongoing cash flow issues. Buyer sentiment was cautious, limiting transactions and liquidity.

Offers for UK-origin shredded stood at $390-395/t CFR Qasim, while UAE-sourced HMS (80:20) and fabrication were offered at $375/t and $390/t CFR, respectively.

Bangladesh: Bangladesh's imported scrap market maintained steady sentiments, supported by stable local demand and improved banking operations.

Offers for Australian shredded stood at $385/t CFR Chattogram, while Malaysian sheared and Hong Kong Holo bundles were both at $370/t CFR. Domestic scrap prices ranged within BDT 52,000-55,000/t, and rebar prices held firm at BDT 79,000-83,000/t.

A trader remarked, "Bangladesh is in sleeping mode. There is a scrap shortage, but buyers are unwilling to pay workable prices."

Turkiye: The Turkish imported ferrous scrap market remained muted, as participants returned from the holidays, with activity expected to resume next week.

Prices of US-origin HMS (80:20) hovered at $346-350/t CFR, while EU-origin was at $340-345/t CFR. Sellers reported firm targets, but challenges such as the weak performance of the euro and high collection costs limited price increases.

Baltic recyclers cited winter's impact on scrap flow, and US recyclers preferred to wait for better prices. Despite quiet trading, sources noted balanced supply-demand dynamics, with expectations of February shipment purchases keeping prices steady around $345/t CFR.

Price assessments

India: UK-origin shredded indicatives were assessed stable d-o-d at $387/t CFR Nhava Sheva.

Pakistan: UK-origin shredded indicatives were assessed at $390/t CFR Qasim, down by $3/t d-o-d.

Bangladesh: UK-origin shredded dropped by $1/t d-o-d to $394/t CFR Chattogram.

Turkiye: US-origin HMS (80:20) bulk was assessed stable d-o-d at $346/t CFR Turkiye.

Outlook

In the near term, South Asia's scrap market is expected to remain subdued, with moderate demand and cautious buyer sentiment continuing. India and Pakistan will likely face slow activity due to the impact of the New Year holiday period and cash flow issues, while Bangladesh may see steady conditions, supported by stable local demand. Turkiye's market should stabilise as activity picks up in the coming weeks.