South Asia: Imported ferrous scrap markets witness bearish demand; Turkiye shows positive signs

• Indian buyers inactive amid high inventories
  
  
• Turkish markets optimistic on rising rebar sales
  
  

The South Asian imported ferrous scrap markets saw subdued activity today, driven by weak demand, financial constraints, and high inventories in India, Pakistan, and Bangladesh.

Indian mills refrained from fresh bookings due to subdued steel demand and ample inventories. Pakistan's liquidity issues and reduced construction activity kept market sentiments low, while Bangladesh struggled with LC challenges and limited demand, despite a few bulk deals.

In contrast, Turkiye's scrap market strengthened as robust rebar demand spurred restocking, pushing up prices slightly, though sellers remained cautious amid potential supply influx from recyclers.

Overview

India: India's imported scrap market remained largely inactive today, with buyers showing minimal interest due to ample inventories and sluggish demand. Major mills across regions reported sufficient stock levels, while others refrained from purchases until early 2025. Offers for shredded scrap from the US and UK/Europe stood at $385-390/t CFR Nhava Sheva, with buyers countering at $380/t. HMS offers ranged from $360-370/t CFR, but buyer interest was subdued.

Bulk busheling from Japan was quoted at $405/t CFR, with no takers. Ample domestic pig iron and sponge iron availability further dampened imported scrap demand. Steel consumption post-COVID remains lower than production, intensifying supply pressure and slowing market activity.

Pakistan: Pakistan's imported scrap market remained cautious today due to a seasonal domestic steel market slowdown and liquidity issues. UK-origin shredded scrap offers edged up to $385-390/t CFR Qasim. Mills operated at reduced capacities, citing sluggish rebar sales at PKR 240,000-245,000/t and local scrap at PKR 140,000/t. Limited restocking activity persisted, while firm global offers prompted a wait-and-watch approach among buyers.

Many mills face challenges due to lower construction activity and financial strain, resulting in subdued market sentiment and minimal inquiries for imported material.

Bangladesh: Bangladesh's imported scrap market remained sluggish today as mills struggled with limited demand and ongoing financial constraints. Bulk HMS deals from Australia were heard at $350-355/t CFR, while offers for Japanese HS were at $370/t CFR, with bids falling short at $360/t. Kanto scrap prices hovered at $342-345/t CFR, reflecting weaker demand for premium grades. Mills continued to face challenges with LC conditions and slow rebar sales, which, at $655/t, remained far below last year's levels. Smaller mills are operating minimally, and the overall market outlook for next year suggests continued pressure unless rebar demand improves significantly.

Additionally, a bulk deal was heard concluded recently comprising 25,000-28,000 t of HMS mix scraps from Australia at around $350-360/t CFR Chattogram.

Turkiye: The Turkish imported scrap market strengthened on 12 December as rising restocking demand and robust rebar sales drove mills back into the market. Deepsea prices climbed, with EU-origin HMS (80:20) assessed at $347/t CFR, up $2/t on the day, and offers for US-origin scrap reaching $355/t CFR. Positive sentiment was supported by speculative rebar restocking linked to anticipated Syrian reconstruction and potential Chinese stimulus measures. Domestic rebar prices surged to $580/t exw, further pushing mills to secure scrap. However, sellers expressed caution, noting a potential influx of supply from recyclers re-entering the market at higher price levels. This balance kept the market optimistic yet wary of near-term volatility.

A few deals were confirmed, including two mills in the West Marmara region securing EU-origin bulk scrap cargos at $342-345/t for HMS (80:20). In the Aegean region, a mill booked two bulk scrap cargos-one from the Baltic and Sweden at $347/t for HMS (80:20) and another from Germany at $344/t.

Price assessments

India: UK-origin shredded indicatives were assessed unchanged d-o-d at $380/t CFR Nhava Sheva.

Pakistan: UK-origin shredded indicatives edged up by $1/t d-o-d to $388/t CFR Qasim.

Bangladesh: UK-origin shredded was assessed at $390/t CFR Chattogram, up by $2/t d-o-d.

Turkiye: US-origin HMS (80:20) bulk was assessed at $347/t CFR Turkiye, up by $2/t d-o-d.