South Asia: Imported ferrous scrap markets show signs of slowing down before holidays

• Limited offers keep Indian market slightly active
  
  
• South Asian markets see holiday-induced slowdown
  
  

The South Asian scrap markets are closing the year on a mixed note, reflecting regional variations in demand, holiday slowdowns, and economic headwinds. India showed a slight uptick in activity with limited offers, while Pakistan's market remained sluggish amid liquidity issues and weak steel demand. Bangladesh faced prolonged challenges due to LC delays, political instability, and economic constraints, dampening sentiment further. Meanwhile, Turkiye's market witnessed a lull as mills stayed on the sidelines, capping price movements. Amidst these trends, Arab Ship Breaking & Recycling Limited's HKC-2009 certification stood out, highlighting strides in sustainable ship recycling practices.

Overview

India: The Indian imported scrap market witnessed a slight uptick in demand, with buyers actively inquiring and a few deals being concluded. However, the holiday season with Christmas and New Year approaching kept suppliers out of the market, and fresh offers remained limited. Suppliers are reportedly fully booked for January shipments and are expected to begin February bookings after the holidays around 5 January. Indicative offers included shredded scrap from the UK/Europe at $385-388/t CFR Nhava Sheva and HMS (80:20) at $365/t CFR. Other offers were HMS from Latin America/Central America at $385/t, PNS UK at $390/t, tin can shredded at $345-350/t, and Brazil HMS at $360-365/t.

Pakistan: Pakistan's imported scrap market remained sluggish, with limited activity as participants entered holiday mode. UK shredded scrap offers stayed at $390-393/t CFR Qasim, but reported deals were minimal and unconfirmed. Domestic scrap prices ranged from PKR 137,000-140,000/t, while rebar and billet stood at PKR 240,000-245,000/t and PKR 207,000-208,000/t, respectively. Weak rebar demand and year-end liquidity issues further dampened market sentiment. The December slowdown and winter season kept the market quiet, with overall sentiment remaining bearish.

Bangladesh: Bangladesh's imported scrap market remained subdued due to prolonged LC approval times, political unrest, and economic challenges. Offers for Australian HMS were at $375-380/t CFR Chattogram, shredded scrap at $385-390/t, and Japanese HMS at $390-395/t. Dhaka mills leaned toward cheaper ship-breaking scrap, while bulk imports were dominated by major players with better LC conditions. Political instability, restricted banking activities, and frozen investments have weakened demand. Ongoing delays in steel mill projects and declining state-funded infrastructure have further impacted scrap market dynamics, keeping the overall sentiment bearish.

It is noteworthy that Arab Ship Breaking & Recycling Limited (ASBRL) achieved HKC-2009 certification, affirming its adherence to global safety, sustainability, and environmental standards in ship recycling.

Turkiye: The Turkish imported scrap market remained quiet as the last working week of the year began, with mills refraining from fresh bookings due to weak rebar demand. Collectors were already on holiday, offering no fresh deals. Market sentiment turned cautious, limiting upward price movement. US-origin bulk HMS (80:20) prices at $350/t CFR Turkiye stable d-o-d, reflecting the lull in trading activity.

Price assessments

India: UK-origin shredded indicatives were assessed at $388/t CFR Nhava Sheva, down by $2/t d-o-d.

Pakistan: UK-origin shredded indicatives were assessed unchanged at $392/t CFR Qasim d-o-d.

Bangladesh: UK-origin shredded were assessed at $392/t CFR Chattogram, down by $2/t d-o-d.

Turkiye: US-origin HMS (80:20) bulk was assessed stable d-o-d at $350/t CFR Turkiye.