South Asia: Imported ferrous scrap markets continue to face challenges; Turkiye rebounds

• Weak demand, liquidity issues bother South Asian markets
  
  
• Turkiye sees firm rebar demand, further uptrend expected
  
  

The South Asian ferrous scrap markets continued to face headwinds as weak domestic steel demand, liquidity challenges, and global factors impacted trading activity. UK-origin shredded prices rose in Pakistan and Bangladesh but were stable in India. Prices of US-origin HMS (80:20) bulk were stable d-o-d in Turkiye.

Indian buyers trod cautiously, expecting further price corrections amid sluggish steel sales. In Pakistan, seasonal slowdowns kept purchases limited to essential needs. Bangladesh witnessed minimal scrap trade, with financial constraints and low inquiries weighing heavily on mills, which operated at losses to maintain liquidity. Meanwhile, Turkiye's market displayed an uptick, buoyed by robust rebar sales and steady bulk scrap demand.

Overview

India: Indian buyers remained cautious today due to sluggish domestic steel sales amid liquidity challenges. Major primary steel mills have slashed December's list prices, mirroring weak market conditions, while buyers expect further drops in scrap tags. However, industry players believe that implementing steel safeguard measures could bolster market sentiment.

UK-origin shredded indicatives were assessed unchanged d-o-d at $380/t CFR Nhava Sheva, with offers for the same from the UK/Europe at $380-385/t CFR Nhava Sheva, while HMS (80:20) was at $355-360/t CFR. West African HMS (80:20) stood at $360-370/t CFR, depending on loading quantity.

A steel mill official noted, "US/UK markets are quiet due to holidays, leaving Japan and Australia as the only active regions. Indian buyers remain on the sidelines, as finished steel sales are minimal. Scrap prices are expected to dip further. Recently, Turkiye booked US scrap at $345/t, but this is unlikely to influence the Indian market."

Pakistan: Pakistani buyers maintained a cautious approach, procuring imported scrap on need basis amid a seasonal slowdown in the domestic steel market and liquidity shortfalls. UK-origin shredded indicatives edged up by $4/t d-o-d to $387/t CFR Qasim, with offers for the same from the UK/Europe at $385-390/t CFR Qasim.

A steel mill official noted, "Need-based buying is ongoing, reflecting the typical year-end slowdown. The local market remains stable, with scrap at PKR 142,000/t and rebar at PKR 245,000-250,000/t. Imported shredded stands at $385-390/t."

A trader added, "UK-sourced shredded sold at $390/t, supported by slightly improving global sentiment, but inquiries remain limited. Pakistan's rebar was priced at PKR 240,000/t, billet at PKR 206,000-210,000/t, and local scrap at PKR 140,000/t."

Bangladesh: Bangladesh's imported scrap market saw limited activity today, with weak buyer inquiries and financial pressures dampening demand.

UK-origin shredded was assessed at $388/t CFR Chattogram, up by $4/t d-o-d. Offers for containerised shredded from the UK/Europe were assessed at $390/t CFR Chattogram, while HMS stood at $375-380/t CFR, reflecting cautious buying. Rebar and billet prices continued to face downward pressure as mills operated at a loss to maintain liquidity.

In Dhaka, rebars stood at BDT 77,000-79,000/t ($644-$661), while Chattogram tags for the same were at BDT 81,000-82,000/t ($678-$686/t). Billet prices were at BDT 63,000/t ($527/t), with local scrap assessed at BDT 48,500-50,000/t ($406-$418/t).

Turkiye: The Turkish imported ferrous scrap market held steady, maintaining levels after a sharp hike the previous day. Turkish mills showed firm interest in restocking amid intensified rebar sales, with sellers standing strong on price expectations.

US-origin HMS (80:20) bulk was assessed stable d-o-d at $345/t CFR Turkiye, with tradable values at $345-350/t CFR, while Baltic-origin material ranged within $340-345/t CFR.

Market sentiment indicated further upward movement, with mills booking ahead of expected market developments, including China's economic policy signals. Limited supply from Baltic recyclers due to rising collection costs and the holiday season added to the firm price outlook.

Price assessments

India: UK-origin shredded indicatives were assessed unchanged d-o-d at $380/t CFR Nhava Sheva.

Pakistan: UK-origin shredded indicatives edged up by $4/t d-o-d to $387/t CFR Qasim.

Bangladesh: UK-origin shredded was assessed at $388/t CFR Chattogram, up by $4/t d-o-d.

Turkiye: US-origin HMS (80:20) bulk was assessed stable d-o-d at $345/t CFR Turkiye.