South Asia: Imported ferrous scrap market under pressure on muted demand

• South Asian scrap market faces sustained pressure
  
  
• Demand softens, prices stabilise across key markets
  
  

The South Asian imported scrap market faced continued pressure, with limited activity across key markets. In India, weak steel demand and mismatch in bid-offer levels slowed down trade, while Pakistan's market showed only moderate demand despite slight improvement in domestic steel sales. Bangladesh's market remained subdued due to financial constraints and cautious buying, while Turkiye's market stayed stable with minimal price fluctuations seen.

Overview

India: India's imported scrap market faced pressure today, with limited buying interest amid an unsupportive steel market and persistent bid-offer mismatches resulting in minimal trades. Indicative offers for shredded scrap from the UK/Europe were at $385-390/t CFR Nhava Sheva, while buyer interest remained capped at $380/t CFR. HMS (80:20) offers ranged from $360-365/t CFR for UK/Europe origins and $365-375/t CFR for West African supplies, depending on the loading.

A trader informed, "The market is very weak, with buyers quoting around $5/t lower than offers and only few inquiries were heard."

Another source said: "The market is slow, with little buying or selling, but prices seem to be nearing the bottom. Buying might pick up once buyers feel confident about the trends."

Pakistan: Imported scrap demand in Pakistan remained moderate today, supported by a slight improvement in domestic steel sales, though the recovery fell short of expectations. A few deals were reported at $385/t CFR for UK/Europe-origin shredded scrap, while some suppliers continued to quote higher at $390-392/t CFR Qasim levels.

A trader commented, "The market is likely to remain soft, and at $380-385/t CFR levels, a near-term rebound doesn't seem likely."

Bangladesh: Bangladesh's imported scrap market remained quiet today, with only moderate activity amid weak steel demand and financial constraints. Several bulk deals were reported from Australia, the US, and Japan, but confirmations are still awaited. Rebar prices ranged from BDT 75,000-84,000/t ($653-703/t), but mills were reluctant to commit to new imports due to high stock levels and delays in infrastructure project approvals.

Turkiye: The Turkish imported ferrous scrap market remained relatively stable, with US and Baltic-origin offers ranging between $343-345/t CFR. Market sentiment was mixed, with no clear driving force for price increases. Some participants felt prices had reached their bottom, while others doubted further price declines. European sellers were cautious, with new offers expected to be below $340/t CFR.

Price assessments

India: UK-origin shredded indicatives were assessed at $385/t CFR Nhava Sheva, down by $1/t compared to last closing on Friday.

Pakistan: UK-origin shredded indicatives remained unchanged at $387/t CFR compared to last closing on Friday.

Bangladesh: UK-origin shredded prices were flat at $389/t CFR Chattogram compared to last closing on Friday.

Turkiye: US-origin HMS (80:20) bulk prices were assessed stable at $344/t CFR Turkiye, compared to last closing on Friday.