South Asia: Imported ferrous scrap markets remain cautious ahead of holidays

• South Asian scrap markets face holiday slowdown
  
  
• Liquidity constraints and LC delays impact trade
  
  

The South Asian scrap markets displayed a cautious sentiment today, with India, Pakistan, and Bangladesh facing distinct challenges. Indian buyers maintained a wait-and-see approach amid a domestic steel market slowdown and limited supplier activity ahead of the holidays. In Pakistan, liquidity constraints and year-end financial closures subdued trade, while in Bangladesh, LC delays and economic hurdles continued to hinder market activity despite a slight boost from seasonal rebar demand. Across the region, trading volumes remained thin, reflecting persistent buyer resistance and broader economic uncertainties.

Overview

India: Indian buyers have taken a cautious stance, adopting a wait-and-see approach amidst a slowdown in the domestic steel market and limited supplier activity ahead of the holidays. Market insiders noted that several yards have temporarily halted operations until after the festive period.

Indicative offers for shredded scrap from the UK/Europe and US ranged between $380-385/t CFR Nhava Sheva, while HMS (80:20) offers were at $360-365/t CFR from the UK and $365-370/t CFR from West Africa.

A supplier commented, "It has been slow, especially this week due to the holidays. Current offers for shredded scrap from the UK/Europe and US are around $375-380/t, with limited buyer interest. HMS from the UK is at $350/t. However, we expect prices to rise by at least $10/t after the holidays."

Pakistan: Pakistan's imported scrap market remained subdued, influenced by year-end holidays and liquidity challenges. UK shredded offers held firm at $390-393/t CFR Qasim, while UAE-origin HMS was at $380-385/t CFR. However, trading volumes were minimal as buyers resisted elevated prices. Domestic scrap stood at PKR 135,000-140,000/t, with rebar at PKR 240,000-245,000/t, reflecting weak demand and mills operating at reduced capacities. Seasonal factors and financial closures kept the market cautious, with limited deals reported and bearish sentiment persisting.

Bangladesh: Bangladesh's imported scrap market remained sluggish amid LC delays, banking restrictions, and rising dollar rates, which constrained liquidity. Offers for UK/Europe origin shredded scrap hovered at $390-395/t CFR Chattogram.

Domestic rebar prices saw modest increases, reaching BDT 78,000-82,000/t, while billet stood at BDT 62,000-63,000/t. Seasonal rebar demand provided slight support, but weak project activity, stalled infrastructure development, and economic uncertainties kept market sentiment bearish. The outlook remains cautious, with broader challenges overshadowing recovery prospects.

Turkiye: The Turkish imported ferrous scrap market remained quiet today, with no firm offers or bids reported.

Price assessments

India: UK-origin shredded indicatives were assessed at $388/t CFR Nhava Sheva, down by $3/t d-o-d.

Pakistan: UK-origin shredded indicatives were assessed at $393/t CFR Qasim, down marginally by $1/t d-o-d.

Bangladesh: UK-origin shredded were assessed at $392/t CFR Chattogram, up by $1/t d-o-d.

Turkiye: US-origin HMS (80:20) bulk was assessed unchanged d-o-d at $349/t CFR Turkiye.