South Asia: Imported ferrous scrap market turns cautious amid weak buying interest

• India turns to domestic scrap on depreciating rupee
  
  
• Turkish buyers seek price cuts amid supply overhang
  
  

South Asia's imported scrap markets saw a cautious day, shaped by weak buying interest and fluctuating price dynamics.

In India, high seaborne offers and a depreciating rupee pushed buyers toward domestic scrap. Pakistan faced limited trading, with mills operating at reduced capacity amid subdued demand. Meanwhile, Bangladesh showed steady booking activity, driven by slight improvements in letter of credit (LC) openings, though sentiments remained cautious. In Turkiye, scrap prices softened further, as mills targeted discounts amid ample supply.

Across all four regions, economic pressures and cautious post-holiday sentiment kept activity restrained, with mixed expectations for the short term.

Overview

India: India's imported scrap market remained muted, with buyers favouring domestic procurement due to high seaborne offers and a weak rupee, which raised import costs. UK-origin shredded indicatives were stable d-o-d at $383/t CFR Nhava Sheva.

Offers for shredded stood at $385/tonne (t) CFR Nhava Sheva, but bids stayed below $380/t CFR. HMS (80:20) from the UK/Europe was quoted at $355-360/t CFR, while West African HMS was offered at $360-370/t CFR.

Traders reported minimal deal activity, citing a $10/t pricing gap caused by currency fluctuations. Despite steady domestic production of billets and TMT, oversupply and cautious sentiment kept imported scrap demand subdued, with expectations of continued market sluggishness in the near term.

Pakistan: Pakistan's imported scrap market remained sluggish, with limited trading activity, as wary buyers negotiated lower prices. UK-origin shredded indicatives were assessed at $388/t CFR Qasim, down by $2/t d-o-d. Offers for the same held steady at $388-390/t, though bids remained below workable levels.

UAE-origin HMS was traded at $368-370/t CFR, while shredded offers touched $392-395/t CFR.

Mills operated at reduced capacity, at around 45-50%, amid subdued demand and cautious post-holiday sentiment. Seasonal scrap shortages provided some support, but discounts on finished steel prices reflected weak sales.

Traders noted modest expectations for a price surge to $392-396/t CFR in the short term, driven by typical early-year buying trends, though broader recovery signals remained absent.

Bangladesh: Bangladesh's imported scrap market remained active, with around 15,000-16,000 t booked recently, but sources suggest that prices may stay range-bound due to cautious buying. UK-origin shredded stood at $391/t CFR Chattogram, unchanged d-o-d.

A trader noted, "LC openings are slightly easier now but still infrequent. Offers remain firm, while bids are down by $6-8/t. Dhaka-based buyers are active, but Chattogram-based ones are quoting well below current offers."

Another trader highlighted bulk US-origin prices, stating, "US West Coast HMS at $370/t CFR, shredded at $375/t CFR, and bonus at $380/t CFR. Sellers are firm at $365-370/t CFR, but buyers are unwilling to exceed $360/t CFR. Major mills hold sufficient inventory, while some are refraining from purchasing."

Turkiye: The Turkish imported scrap market softened, though US-origin HMS (80:20) was assessed at $343/t CFR, unchanged d-o-d. Deals were confirmed at lower levels from European and US origins, reflecting good recycler availability.

Mills targeted further price reductions amid supply overhang, with bids for US scrap at $339-342/t CFR and EU material at $330-335/t CFR. Sellers resisted steep drops, but buyers expected concessions.

While short-term sentiment remains weak due to cautious mill buying, some recyclers predicted tightening supply later in the year, suggesting potential long-term price stability.

Price assessments

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

Pakistan: UK-origin shredded indicatives were assessed at $388/t CFR Qasim, down by $2/t d-o-d.

Bangladesh: UK-origin shredded stood at $391/t CFR Chattogram, unchanged compared to yesterday.

Turkiye: US-origin HMS (80:20) bulk was assessed stable today at $343/t CFR Turkiye.