South Asia: Imported ferrous scrap offers drop by up to $5/t d-o-d amid limited market activity

• Weak euro leads to drop in Turkish prices

  
  
  

• Indian buyers put off by weak steel demand
  
  

South Asian and Turkish imported scrap markets saw limited activity today amid market uncertainties and low steel demand. Overall, imported scrap offers dropped by $2-5/tonne (t) across markets.

Indian buyers were cautious due to weak domestic steel sentiments and falling prices, which kept inquiries selective. In Pakistan, sluggish rebar demand and transportation delays from heavy smog slowed purchasing, with mills holding back in expectation of price drops. Bangladesh's scrap market remained quiet amid weak steel demand and import hurdles, while Turkiye faced softened prices following lower tradable levels from Europe and a strong dollar, which pushed Turkish mills to adopt a wait-and-see approach.

Overview

India: Indian buyers exhibited moderate interest today due to weak domestic steel market sentiments and recent declines in local scrap and steel prices, sparking uncertainty about future trends. UK-origin shredded scrap indicatives declined by $2/t d-o-d to $395/t CFR Nhava Sheva, with offers assessed at $390-395/t CFR, while HMS (80:20) stood at $370-375/t CFR.

A trading company representative noted, "Indian buyers are keeping activity limited, selectively pricing and targeting lower rates than the general market offers. Bulk inquiries remain minimal, although some buyers are considering larger volumes."

Pakistan: Pakistan's imported scrap market remained steady today, with minimal buyer activity due to low rebar demand. Offers for UK/Europe-origin shredded scrap stood at $390-395/t CFR Qasim, with indicatives assessed at $397/t CFR Qasim, a decline of $2/t d-o-d. Mills held back on new purchases, awaiting potential price drops.

Furthermore, persistent smog in Punjab hindered transportation, adding to the market's sluggishness. Sellers showed caution, with limited willingness to lock in new deals amid ongoing price instability. Domestic scrap prices also faced downward pressure as mills sought lower rates, reflecting the broader market uncertainty and subdued demand.

Bangladesh: Bangladesh's imported scrap market remained quiet further today, as weak steel demand and high inventory levels continued to dampen trade. UK-origin shredded prices were at $398/t CFR Chattogram, down by $2/t d-o-d.

Steel mills, including major ones, held off on new purchases due to sufficient stock and limited market demand. Imported shredded offers from Australia and Malaysia remained at $395-400/t CFR, while mills showed minimal buying interest. Ongoing letter of credit (LC) challenges, a weakening currency, and high freight costs further hindered imports, adding to the subdued market sentiment.

Turkiye: Turkish imported ferrous scrap prices weakened today, reflecting lower tradable levels in European markets and a stronger dollar against the euro. US-origin HMS (80:20) bulk prices were at $358/t CFR Turkiye, down by $5/t d-o-d.

A new European cargo was sold recently, setting the benchmark price for European HMS (80:20) at $353/t CFR, marking a slight dip from prior workable levels. Additionally, mills in Turkiye showed reluctance to higher prices, signalling caution amid weak demand and limited activity. Shortsea scrap prices also declined, with Romanian-origin material selling at around $345/t CFR. The thin trading week underscores mills' preferences to await stronger market signals before resuming purchases, with no offers seen for US-origin scrap today.

A yard owner reported that the current dock prices in the EU are around EUR 290/t ($306-308/t), with the euro nearing a two-year low against the USD, which has intensified expectations of low-priced deals for Turkiye. Market participants expect EU-origin scrap to be traded at $350-355/t CFR Turkiye, aligning with reported workable levels. Though specific transactions remain unconfirmed, sentiment leans toward potential softening in deal prices due to the favourable exchange rates, likely benefitting Turkish mills seeking more competitive import options.

Price assessments

India: UK-origin shredded scrap indicatives inched down by $2/t d-o-d to $395/t CFR Nhava Sheva.

Pakistan: UK-origin shredded indicatives dropped by $2/t d-o-d to $397/t CFR Qasim.

Bangladesh: UK-origin shredded prices were at $398/t CFR Chattogram, down by $2/t d-o-d.

Turkiye: US-origin HMS (80:20) bulk prices stood at $358/t CFR Turkiye, down by $5/t d-o-d.