South Asia: Imported ferrous scrap offers drop on muted demand across markets

• South Asian scrap demand weak amid sluggish steel sales, financial strain
  
  
• Turkish scrap prices fall further; mills cautious on future trends
  
  

The South Asian ferrous scrap market continued to experience a challenging environment, with weak demand and financial pressures affecting key countries. In India, sluggish domestic steel sales, high inventory levels, and relatively better availability of domestic scrap have kept demand for imported scrap subdued.

Pakistan's market remained quiet, with buyers exercising caution despite declining prices, while Bangladesh faced weak steel demand and financial strain, limiting buyer interest. Meanwhile, the Turkish market struggled with falling prices and slow demand, as mills awaited potential price support from tightening supply.

Overall, imported scrap prices across regions fell by up to 2-3/t compared to last weekend's closing.

Overview

India: In India, the demand for imported scrap remained weak due to sluggish finished steel sales in the domestic market, liquidity challenges stemming from high inventories of both raw materials and finished steel, and relatively good availability of domestic scrap at competitive prices compared to imported scrap. Indicative offers for shredded scrap from the UK/Europe were heard at $380-385/t CFR Nhava Sheva, but interest from buyers at these price points was limited.

Offers for HMS 80:20 from the UK/Europe were heard at $360-365/t CFR, with buyers' asks were around $350-355/t CFR. From West Africa, offers ranged between $360-370/t CFR, depending on loading.

A trader source noted, "The market is under significant pressure due to liquidity issues, weak demand for finished steel, and ongoing production cuts. The recent raid in Punjab has further dampened market sentiment, leaving traders uncertain about whether buyers will even lift their booked materials."

Pakistan: Pakistan's imported scrap market remained quiet, with buyers exercising caution despite falling prices. Offers for shredded scrap from the UK/Europe were heard at $380-385/t CFR Qasim. Mills faced tight margins as rebar prices remained steady but construction demand weakened. UAE-origin HMS continued to see interest, with unprocessed material offered at $370/t CFR, while sheared HMS was priced at $380/t CFR.

Bangladesh: Bangladesh's imported scrap market remained subdued today amid weak steel demand and financial challenges. Offers for EU/UK-origin shredded stood at $385-390/t CFR Chattogram, but buyers held back, anticipating further price drops. Australian HMS (90:10) was offered at $388/t CFR, with bids at $382-385/t CFR, while US HMS (80:20) was offered at $385-386/t CFR, with limited interest. Japanese H2 offers at $365-367/t CFR also failed to attract firm bids.

Turkiye: The Turkish imported scrap market continued to weaken today, with prices sliding further amid sluggish demand and ample inventories. Sentiment remained bearish, with recyclers hesitant to sell amid falling prices and upcoming holiday disruptions. While some suggest prices may be nearing a bottom, others expect collection rates to decline if prices drop further, potentially tightening supply and offering future price support. For now, Turkish mills remain cautious, closely monitoring market conditions.

Price assessments

India: UK-origin shredded indicatives dropped by $3/t to $380/t CFR Nhava Sheva, compared to last closing on Friday.

Pakistan: UK-origin shredded indicatives edged down by $3/t to $382/t CFR compared to last closing on Friday.

Bangladesh: UK-origin shredded prices edge down by $1/t at $386/t CFR Chattogram compared to last closing.

Turkiye: US-origin HMS (80:20) bulk prices were assessed at $338/t CFR Turkiye, down by $2/t compared to last closing on Friday.