South Asia: Imported ferrous scrap markets face sluggish demand; offers remain unchanged

• Indian buyers silent amid weak steel sales, duty rumor
  
  
• Pakistan, Bangladesh, Turkiye witness weakened market activities
  
  

The South Asian ferrous scrap market remained under pressure today, with sluggish demand across key markets. In India, weak steel sales led to muted buying interest, while suppliers holding back scrap offers in anticipation of potential price hikes linked to steel import duties.

Pakistan's market continued to witness cautious sentiments, with buyers waiting for lower offers amid limited construction activity. Bangladesh saw resistance to high offers, with buyers anticipating price drops. Meanwhile, the Turkish market remained stagnant, with minimal activity as mills exhibited caution due to excess supply and low steel demand, leaving the market uncertain.

Meanwhile, imported scrap offers across markets remained largely stable d-o-d.

Overview

India: Indian buyers remained silent today as sluggish steel sales in the domestic market dampened buying interest. Domestic scrap suppliers, however, have limited their offerings, anticipating a potential price increase amid ongoing rumors about new steel import duties.

Shredded scrap offers from the UK and Europe stood at $380-385/t CFR Nhava Sheva, but buyers showed little interest at these levels. Meanwhile, HMS (80:20) from the same origins was offered at $355-360/t CFR, with buyers firmly bidding below or around $350/t CFR.

Pakistan: Pakistan's imported scrap market remained sluggish today as buyers held out for lower offers, while suppliers stayed firm at $385-390/t CFR Qasim. Bids stayed below $380/t, reflecting cautious sentiment amid weak construction activity and moderate rebar sales.

In the domestic steel market, local scrap prices were steady at PKR 140,000-142,000/t, with rebar trading between PKR 245,000-250,000/t. Mills continued to operate at low production levels, facing tight margins as stable rebar prices failed to offset declining demand, leaving the market in a state of uncertainty.

Bangladesh: Bangladesh's imported scrap market remained sluggish today as buyers resisted high offers amid weak steel demand and ongoing liquidity challenges. EU/UK-origin shredded scrap offers stood at $385-390/t CFR Chattogram, with limited buyer interest as most buyers awaited further price drops. Australian shredded scrap was offered at $380-385/t CFR, while bids hovered around $375/t. South African HMS (80:20) offers were at $350/t CFR, but buyers leaned toward $345/t. Meanwhile, busheling scrap from Malaysia was heard being offered at $410/t CFR, and oversized PNS from Hong Kong at $415/t CFR; however, takers were few.

In the domestic market, scrap prices hovered at BDT 77,000-78,000/t ex Dhaka while BDT 82,000-83,000/t ex Chattogram. Billet prices ranged between 65,000-66,000/t and local scrap was at BDT 49,000-51,000/t exw.

Turkiye: The Turkish imported scrap market remained stagnant today as deepsea scrap prices held steady amid minimal trades. Sellers continued to withdraw from the market, with US and Baltic-origin HMS (80:20) assessed around $338/t CFR. However, Turkish mills displayed limited interest, likely bidding lower due to sluggish steel demand and concerns over excess supply. While some traders anticipated a market bottom, mills' cautious approach and competition from alternative buyers, particularly in the Middle East, muddied the outlook. EU-origin HMS offers hovered around $337-338/t CFR, with collection flows in Europe remaining minimal amid low dock prices.

Price assessments

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

Pakistan: UK-origin shredded indicatives remained flat d-o-d at $382/t CFR .

Bangladesh: UK-origin shredded prices were kept unchanged at $383/t CFR Chattogram d-o-d.

Turkiye: US-origin HMS (80:20) bulk prices remained unchanged d-o-d at $338/t CFR Turkiye.