South Asia: Imported ferrous scrap markets remain largely stable

• India's scrap market stable, limited buying activity seen
  
  
• Pakistan's scrap market muted due to strike
  
  

The South Asian ferrous scrap markets showed stable trends today. India's market remained stable with limited buying activity, while Pakistan's demand stagnated due to political strikes halting market activity. Bangladesh faced sluggish demand amid financial instability and a volatile taka, while Turkiye's market stayed unchanged, with low buyer interest and pressure on scrap prices from weak rebar sales.

Overview

India: India's imported scrap market saw stability today, as buying activity was limited due to a weak steel market and ongoing bid-offer mismatches, leading to very few transactions.

A trader informed, "We are hearing workable levels around $385-388/t CFR, but we are holding our offers higher at $395-400/t for December loadings . African HMS offers are around $375-380/t, with workable levels at $372-375/t CFR WC India, while buyer bids are at $370/t for 22,000 t, with financing involved."

Pakistan: Imported scrap demand in Pakistan remained marginally down by $1/t, as overall activity remain stagnant today due to strikes organized by the PTI political party, which have halted all market activities over the past 3 to 4 days. A few deals were reported at $385/t CFR for UK/Europe-origin shredded scrap.

A trader commented, "Protests have severely disrupted the Punjab and KPK regions, with all motorways closed for the past four days. Transport is at a standstill, causing significant business disruptions in northern Pakistan. The situation remains uncertain but may last another two to three days."

Bangladesh:Bangladesh's imported scrap market remained sluggish today, with limited activity due to weak steel demand and financial constraints. Mills were hesitant to commit to new imports as the Bangladeshi taka remained volatile at historic lows. Economic instability, limited financing, and rising non-performing loans have hindered a full market recovery, while key infrastructure projects remain stalled.

Turkiye: The Turkish imported ferrous scrap market stayed largely unchanged, with offers for US and Baltic-origin material ranging from $343-345/t CFR. However, low buyer interest from Turkish mills, driven by limited finished steel sales, led to a reduction in rebar prices, which put further pressure on scrap prices. The buy-side reported a lack of restocking demand and expects continued price pressure in the near term. European sellers will need to accept these low Turkish prices (below $340/t CFR for EU-origin) if they want to sell.

The recent drop in rebar prices in Turiye is mainly due to sluggish demand and lower import scrap prices. As a result, mills are adjusting their pricing strategies, offering discounts to remain competitive and stimulate sales.

Price assessments

India: UK-origin shredded indicatives were assessed at $385/t CFR Nhava Sheva, stable compared to previous day.

Pakistan: UK-origin shredded indicatives edge down by $1/t at $386/t CFR compared to to previous day.

Bangladesh: UK-origin shredded prices were flat at $389/t CFR Chattogram compared to to previous day.

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