South Asia: Imported ferrous scrap offers drop by up to $3/t d-o-d

• India limits purchases amid weak steel demand
  
  
• Turkish prices stay firm as mills cautiously restock
  
  

The South Asian ferrous scrap markets witnessed mixed activity amid global economic pressures and local demand dynamics. However, offers for shredded from the UK/Europe saw minor corrections across the region, dropping by $1/tonne (t) d-o-d in India and Pakistan and by $3/t in Bangladesh.

Indian mills stayed cautious due to weak sentiments in the domestic steel segment and mismatched bids and offers. Conversely, Pakistani buyers showed higher activity compared to neighbouring countries, driven by a domestic scrap shortage, despite global market slowdowns. Additionally, Bangladesh's scrap market also slowed down, as major mills held sufficient inventories and, thus, showed limited buying interest.

Meanwhile, Turkiye's deep-sea scrap market saw stable pricing as mills cautiously proceeded with restocking activities. However, bearish sentiment persisted due to weak finished steel demand and an ample supply of January cargoes. US-origin bulk HMS (80:20) offers in Turkiye remained stable.

Overview

India: Indian buyers showed limited interest in imported scrap due to a bid-offer mismatch and weak support from the domestic steel market.

Offers for shredded from the US and UK/Europe were at $370-375/t CFR Nhava Sheva, while HMS (80:20) was quoted at $340-350/t CFR. West African HMS (80:20) was heard at $350-355/t CFR, depending on container size.

Notably, a bulk cargo from the US, reportedly booked by an eastern India-based steel mill, included HMS (80:20) and shredded, though confirmation is still awaited.

Pakistan: Pakistani buyers showed higher activity compared to neighbouring countries due to a domestic scrap shortage. However, amid the global market slowdown, buyers kept suppliers under pressure by placing lower bids.

Deals were heard at $380-383/t CFR, with expectations for UK/Europe-origin shredded to drop to around $375/t CFR Qasim. In the domestic market, scrap prices rose to PKR 145,000-148,000/t ($520-531/t), while rebar tags held steady at PKR 238,000-245,000/t ($854-879/t), depending on payment terms.

Bangladesh: Bangladesh's imported scrap market experienced a slowdown due to weaker finished steel sales, a dip in government project activity, and subdued demand. Market participants noted that major mills held adequate scrap inventories, leading to limited buying interest.

Offers stood at $375-380/t CFR Chattogram for Australian shredded, $365/t for HMS (80:20), and $390/t for PNS.

Turkiye: Turkish deep-sea import scrap prices remained stable, as mills cautiously continued restocking from European recyclers. Weak finished steel demand and bearish sentiment pressured scrap prices, with unsold January cargoes adding to supply. Sellers cited collection difficulties due to winter, but buyers remained cautious, expecting further price dips amid sluggish rebar demand.

US-origin bulk HMS (80:20) was assessed at $332/t CFR, unchanged d-o-d. EU-origin material traded at $327-328/t CFR, while Baltic/US offers hovered near $330-335/t CFR.

Price assessments

India: UK-origin shredded indicatives were assessed at $372/t CFR Nhava Sheva, down by $1/t compared to the last close on Friday.

Pakistan: UK-origin shredded indicatives were at $379/t CFR Qasim, down by $1/t compared to the last close on Friday.

Bangladesh: UK-origin shredded was assessed at $381/t CFR Chattogram, down by $3/t against the last close on Friday.

Turkiye: US-origin HMS (80:20) bulk scrap offers remained unchanged at $332/t CFR Turkiye compared to the last close on Friday.