South Asia: Imported ferrous scrap offers drop by up to $5/t amid subdued demand

• India hit by wide bid-offer gaps, weak steel market
  
  
• Uptrend expected in Turkiye amid tightening supply

  
  
  

The South Asian scrap market witnessed subdued activity, driven by weak steel market conditions and regional economic challenges. UK/Europe-origin shredded offers dropped by $3/tonne (t) in India, $4/t in Pakistan and $5/t in Bangladesh.

In India, imported scrap demand remained muted due to bid-offer mismatches and a weak steel market. Pakistan saw reduced mill operations amid sluggish domestic demand and declining local scrap prices. In Bangladesh, a softening steel market and delays in government projects kept scrap demand low.

Meanwhile, Turkiye experienced a bearish trend with falling prices, although there was some optimism for a recovery by the month-end. US-origin bulk HMS (80:20) offers to Turkiye dropped by $2/t.

Overview

India: In India, imported scrap demand remained muted due to bid-offer mismatches and a subdued steel market.

Indicative offers for US and UK/Europe-origin shredded stood at $375-380/t CFR Nhava Sheva, while buyers bids hovered at around $370/t CFR. UK/Europe-origin HMS (80:20) was offered at $355-360/t CFR, with buyers eyeing $350/t CFR as workable. West African HMS (80:20) offers ranged within $350-360/t CFR, depending on container loading terms.

Pakistan: Pakistan's imported scrap market remained sluggish, with local scrap prices dropping to PKR 142,000/t, while rebar held steady at PKR 240,000-245,000/t. Mills continued operating at reduced capacities, reflecting weak demand.

Indicative offers for shredded from the UK/Europe were heard at $383-385/t CFR Qasim.

Bangladesh: Imported scrap demand remained sluggish today due to a softening local market. Domestic scrap prices held steady, but rebar prices dropped by BDT 500-1,000/t from last week to BDT 85,000-86,000/t ex-Dhaka and BDT 87,000-88,000/t ex-Chattogram. The decline was driven by weak demand, adequate buyer inventories, and delays in government projects indicating slow progress.

Australian-origin HMS 80:20 was offered at $360/t CFR Chattogram, with shredded at $380-385/t CFR. PNS from Hong Kong was heard at $385/t CFR, while Japanese rebar bundles were priced at $393/t CFR.

Additionally, a deal for bulk Japanese H1/H2, totalling approximately 9,000-10,000 t, was heard concluded at $352/t CFR, though confirmation is still pending.

Turkiye: Turkish imported ferrous scrap prices declined, with US-origin HMS (80:20) at $341/t CFR. Trade values ranged within $336-343/t CFR, amid mixed market sentiment. Some sources predicted recovery on tighter scrap availability and reduced collection due to winter, while others expected prices to remain under pressure from oversupply, especially European offers.

Unconfirmed deals and divided opinions kept the outlook uncertain, though sources hinted at a rebound by late January, with potential $10/t price gains, supported by construction demand and limited scrap availability.

Price assessments

India: UK-origin shredded indicatives were assessed lower by $3/t at $380/t CFR Nhava Sheva, compared to the last close on Friday.

Pakistan: UK-origin shredded indicatives were assessed at $385/t CFR Qasim, down by $4/t compared to the last close on Friday.

Bangladesh: UK-origin shredded stood at $386/t CFR Chattogram, dropping by $5/t compared to the last close on Friday.

Turkiye: US-origin HMS (80:20) bulk was assessed at $341/t CFR Turkiye, down by $2/t compared to the last close.