South Asia: Imported ferrous scrap markets remain sluggish on steel sector slowdown

• Turkish mills seek lower scrap prices
  
  
• Indian market weakens due to slow demand in key sectors
  
  

The South Asian scrap market remains subdued, with India's demand sluggish due to weak automotive and construction sectors post-Diwali. Pakistan saw moderate buying in anticipation of the winter season, while Bangladesh faced low buyer interest due to financial constraints and a struggling infra sector. Turkish mills pressured prices lower, aiming to reduce inventories before the New Year.

Overview

India: The demand for imported scrap remained stable today due to the automotive and construction industries in India remaining stagnant after Diwali, with ongoing rains in many states further slowing recovery. This has led to bearish demand across the country.

Regional rebar price fluctuations in recent weeks do not suggest any long-term demand recovery, as per market insiders.

Buyers are bidding at $360/t for HMS from Africa, while sellers are holding firm at $365-368/t, creating bid-offer disparity. UK/EU shredded scrap offers are at $384-385/t, and HMS is being quoted at $362-364/t CFR West Coast India.

A UK-based supplier stated, "UK scrap export prices are unlikely to rise before Christmas. Even if we increase offer prices, there won't be a significant boost in demand from Asian buyers."

Recent offers:

• Australia: HMS 1 at $370-372/t, shredded at $378-380/t, with some sellers offering immediate payment discounts to maintain liquidity.
  
  
• Nearshore regions: Scrap offers remain low, around $360-365/t for HMS from Bahrain, Oman, and Yemen.
  
  

Pakistan: The imported scrap market remained subdued today. Buying activities were seen this week in anticipation of the upcoming winter season and December holidays.

As per a Karachi-based mill source, suppliers are currently quoting $390/t for scrap from the UK and EU, with deals finalised at $388-389/t for approximately 10,000-12,000 t this week, amid the upcoming restocking season.

However, locally sourced scrap remains more expensive than imported scrap by around PKR 1,000-2,000/t($4-7/t).

Bangladesh: Bangladesh's imported scrap market remained subdued today amid weak steel demand and limited buyer interest. Offers for EU/UK-origin shredded stood at $385-388/t CFR Chattogram, but bids remained lower as most buyers stayed on the sidelines, anticipating further price corrections in the near term.

Containerised offers to CFR Chattogram were heard from Australian HMS (90:10) at $388/t (bids $382-385/t), shredded at $394-398/t (bids $390/t), and Southeast Asian PNS at $410-415/t. US HMS (80:20) mix is offered at $385-386/t (bids $380/t), with shredded at $390-395/t (bids $385/t). Japanese H2 is at $365-367/t (bids $360/t), and HS at $392-395/t (no firm bids).

Turkiye: The Turkish imported ferrous scrap market witnessed a stable trend d-o-d, with US-origin bulk HMS (80:20) offers assessed at $340/t CFR. Sellers faced weak offers from Turkish mills due to slow finished steel sales and reduced interest in scrap imports. Deals heard for Baltic and US-origin scrap were reported at $337.5/t and $342/t, respectively, maintaining the range-bound workable price range.

Turkish mills intensified pressure on prices, with buyer targets for US/Baltic-origin HMS (80:20) dropping to the $330/t CFR. Mills reported lower scrap demand as they aimed to reduce finished steel inventories before the new year.

A market participant said, "Everyone is trying to enter the New Year without stock, so they are eager to sell their cargoes."

An EU recycler said, "The downside in scrap prices is due to abundant cargoes and the weak euro."

Another EU recycler said, "Recyclers might wait for improvement in January, but that could lead to oversupply and keep prices low."

Price assessments

India: UK-origin shredded indicatives stable d-o-d to $383/t CFR Nhava Sheva.

Pakistan: UK-origin shredded indicatives edged up d-o-d by $1/t to $385/t CFR.

Bangladesh: UK-origin shredded prices edge down by $1/t at $387/t CFR Chattogram compared to the previous day.

Turkiye: US-origin HMS (80:20) bulk prices were assessed at $340/t CFR Turkiye, stable d-o-d.