South Asia: Imported ferrous scrap markets remain sluggish amid price gaps, weak demand

• Indian buyers cautious about imported scrap, bid-offer gap widens
  
  
• Pakistani buyers prioritise cheaper arrivals over fresh bookings
  
  

The South Asian scrap markets continued to face subdued activity, with buyers in India, Pakistan, and Bangladesh showing limited interest in new bookings due to a combination of price gaps, high inventories, and weak steel market sentiment.

India saw minimal trade as buyers remained cautious amidst a slowing domestic steel market, driven by regional disruptions and the approaching Diwali festival. In Pakistan, fresh scrap arrivals were met with lukewarm demand as previously booked shipments continued to arrive at cheaper rates. Similarly, Bangladesh saw minimal scrap buying, with major buyers inactive for months.

Meanwhile, Turkiye's imported scrap market remained stagnant, as mills hesitated to seal new bookings, anticipating lower prices amid slow domestic rebar sales.

Overview

India: Indian buyers remained uninterested in booking imported scrap due to a $5-8/t gap between buyer bids and seller offers, resulting in minimal trade activity. Additionally, a slowdown in the domestic steel market, driven by disruptions from a cyclone in some regions and the upcoming Diwali festival, dampened demand. Indicative offers for shredded scrap from the US and UK/Europe were around $395-398/t CFR Nhava Sheva, while buyers sought prices closer to $390-392/t CFR. Offers for HMS (80:20) from Europe and West Africa ranged from $375-380/t CFR, but buyers aimed for levels below $370/t CFR.

Pakistan: Pakistani buyers showed limited interest in fresh scrap bookings, as previously booked shipments, continue to arrive. Fresh arrivals expected to reach Pakistan are being offered at $395-398/t CFR Qasim, while buyer bids were heard around $390-392/t CFR.

A steel mill official commented, "A lot of material has been arriving recently, but many are struggling to release it and are offering at significantly lower prices. Cash flow issues have worsened. While offers are around $400/t, it seems material can be released for $390-395/t. We managed to buy some quantity at $385/t, and shredded UK scrap for fresh bookings is at $395/t."

Bangladesh: In Bangladesh, imported scrap buying activity remained minimal, with several major buyers staying inactive for the past two months due to sufficient inventories and weak steel market sentiment. Indicative offers for shredded scrap from Australia and New Zealand were heard at $400-405/t CFR Chattogram, while buyers sought prices closer to $395-400/t CFR. HMS (90:10) scrap from South America was reportedly offered at $355-365/t CFR.

Turkiye: The Turkish imported scrap market remained largely stagnant, with no new deals or price movements reported. Both buyers and sellers held their positions, unwilling to make concessions. Turkish mills were hesitant to book new scrap due to slow domestic rebar sales and the expectation that they could secure lower prices if they waited. US and European sellers, however, maintained firm pricing, citing strong domestic markets and high collection costs.

The market outlook appeared bearish for Turkish mills, who aimed to pressure scrap prices lower, while sellers showed little urgency to adjust prices downward, leading to a continued market pause.

Price assessments

India: UK-origin shredded scrap indicatives edge down by $2/t at $395/t CFR Nhava Sheva compared to previous day.

Pakistan: UK-origin shredded indicatives remained stable to $395/t CFR Qasim compared to previous day.

Bangladesh: UK-origin shredded prices were stood at $400/t CFR Chattogram, stable compared to previous day.

Turkiye: US-origin HMS (80:20) bulk prices remained stable at $372/t CFR Turkiye compared previous day.