South Asia: Imported ferrous scrap market under pressure amid weak demand

• India imports weak amid sluggish finished sales
  
  
• Chinese billets keep Turkish demand subdued
  
  

The South Asian imported scrap market remained under pressure. Prices emitted slightly mixed signals with demand weak in several countries due to a sluggish steel market and expectations of further price declines. In India, low buyer interest persisted, driven by sluggish finished sales, while Pakistan saw moderate activity with cautious purchasing amid liquidity challenges. Bangladesh experienced some activity with bulk deals reported, but confirmations remained pending. In Turkiye, the market remained stagnant as mills refrained from buying due to weak end-product demand and competition from cheaper Chinese billets.

Overview

India: Demand for imported scrap in India remained weak, driven by a lack of buyer interest amid a sluggish steel market and expectations of further price softening. Indicative offers for shredded scrap from the UK/Europe were at $385-390/t CFR Nhava Sheva, while HMS (80:20) was priced at $365/t CFR. HMS (80:20) offers from West Africa ranged between $365-375/t CFR, depending on the loading port.

A supplier commented, "With Indian demand already low, the decline in Turkish prices has add more pressure. Suppliers are feeling the pressure but cannot lower prices due to high procurement costs, and the outlook is uncertain. Even yard owners are unsure how to boost sales."

A trade source added, "Buyers always find reasons to negotiate; the market is not favourable for buying."

Pakistan: Pakistan's imported scrap market witnessed moderate activity today, with buyers closely tracking global trends and anticipating lower offers. Shredded scrap offers from the UK/Europe were quoted at $385-390/t CFR Qasim. In the domestic market, rebar sales showed some improvement but fell short of expectations, prompting buyers to plan purchases cautiously. Industry production levels remained at 30-40%. Rebar prices were at PKR 250,000-255,000/t ex-Karachi, depending on payment terms, and PKR 245,000-248,000/t ex-Punjab.

A mill official noted, "If Turkish prices drop further, we expect scrap to touch $370-375/t. Local demand is better, but liquidity issues persist. With the holiday season nearing, activity may be slow, and rebar inventories are sufficient for 15 days." A supplier added, "There is buying interest at $385-390/t, but no offers at $380/t. With only four working weeks left this year, prices may remain stable at current levels."

Bangladesh: Bangladesh buyers showed moderate activity today, with reports of recent bulk deals, though confirmations remain pending. These include a 30,000-t US-origin mix of HMS (80:20) at $370/t CFR Chattogram, shredded scrap at $375/t CFR, and bonus scrap at $380/t CFR. Another deal involved 25,000-30,000 t of Australian HMS (80:20) at $370-375/t CFR Chattogram. Additionally, a Japanese bulk vessel carrying 10,000 t of shindachi and busheling scrap was booked at $385-390/t CFR. Meanwhile, the local market remained subdued due to limited government projects and ongoing financing challenges. Rebar prices were quoted at BDT 75,000-80,000/t ex-Dhaka and BDT 80,000-84,000/t ex-Chattogram.

Turkiye: The Turkish imported scrap market remained stagnant, with US bulk HMS (80:20) prices assessed at $343/t CFR, unchanged d-o-d. Mills continued to show little interest in purchasing due to weak demand for end products, availability of cheaper Chinese billets, and uncertain price trends. While bearish sentiment dominated, sellers found a glimmer of hope in demand from South Asia, suggesting alternative opportunities.

Some recyclers believed prices might have bottomed, but others highlighted ample dockside supply. With December likely to stay quiet, participants expect limited movement in the near term, though winter and holiday seasonality may offer slight support.

Price assessments

India: UK-origin shredded indicatives dropped by $1/t d-o-d to $386/t CFR Nhava Sheva.

Pakistan: UK-origin shredded indicatives edged down by $3/t d-o-d to $387/t CFR.

Bangladesh: Prices of shredded, also from the UK, inched up by $1/t d-o-d to $389/t CFR Chattogram.

Turkiye: US-origin HMS (80:20) bulk prices edged up by $1/t d-o-d to $344/t CFR Turkiye.