South Asia: Imported ferrous scrap offers edge up in Pak, Bangladesh despite limited demand

• Indian buyers stay away amid bid-offer disparities
  
  
• Potential supply squeeze may lift prices in Turkiye
  
  

South Asia's imported scrap markets witnessed a cautious trading session today. Indian buyers showed limited interest due to persistent bid-offer gaps, while Pakistan's market hinted at a possible rebound, supported by recent rebar price hikes and positive policy shifts. In Bangladesh, weak steel demand and letter of credit (LC) restrictions suppressed procurement, with buyers favouring smaller bulk bookings over containerised scrap. Turkiye, on the other hand, saw a marginal price uptick, amid expectations that supply may tighten.

Despite limited buying interest, offers for shredded scrap edged up by $2-5/t in Pakistan and Bangladesh, while they remained unchanged in India. US bulk HMS (80:20) offers to Turkiye inched up by $1/t d-o-d.

Overview

India: UK-origin shredded indicatives held steady d-o-d at $388/t CFR Nhava Sheva.

Indian buyers held back today amid bid-offer gaps, which dampened demand for imported scrap. Indicative offers for US and UK/Europe-origin shredded scrap hovered at $390-395/t CFR Nhava Sheva, though buyers found prices above $385/t CFR unworkable. HMS (80:20) offers from the UK/Europe and West Africa stood at $370-375/t CFR.

Domestically, demand for scrap was stable, but festive season-related transportation issues slowed arrivals, prompting traders to raise offers. Mills also upped prices of semi-finished steel. A mill owner noted, "While the market should stay range-bound during the upcoming Chhath Puja, activity is likely to rise mid-week, especially if primary mills lift finished steel prices, boosting the secondary market."

Pakistan: UK-origin shredded indicatives increased by $5/t d-o-d to $395/t CFR Qasim.

Pakistani buyers showed limited interest today amid a sluggish domestic market. However, an uptick in activity is expected following recent rebar price hikes by local mills and favourable policy announcements by the State Bank of Pakistan.

"We have finally raised prices after a year of downturns. The policy outlook is positive; let us hope activity picks up in the coming days," a steel mill representative stated.

Another official commented, "Conditions are similar to last week, with a slight demand improvement; we expect stability at these rates."

Domestically, rebar prices were around PKR 250,000-255,000/t, local scrap at PKR 150,000-152,000/t, and billets at PKR 210,000-211,000/t exw.

Bangladesh: UK-origin shredded prices rose $2/t d-o-d to $395/t CFR Chattogram.

Offers increased despite a sluggish market due to low steel demand, ongoing construction disruptions, and LC constraints. Furthermore, HMS (80:20) from Europe was offered at $380-385/t CFR Chattogram, while the containerised scrap segment saw limited activity as buyers focused on smaller bulk purchases. US bulk offers at $390/t were largely deemed unviable.

Turkiye: Turkish imported scrap prices saw a minor rise, with expectations for more bookings soon. The last deal, closed by an Izmir mill, involved UK-origin HMS (80:20) at $359/t CFR, pushing up the US-origin variant by $1/t to $364/t. Tradable values hovered at $363-365/t, while rebar prices held steady at $590/t FOB, keeping the scrap-rebar spread wide at $226/t.

Limited scrap supply and high collection costs (around $291/t delivered to docks) may spur mills to book promptly, potentially increasing prices by $5-10/t.

Price assessments

India: UK-origin shredded indicatives remained stable d-o-d at $388/t CFR Nhava Sheva.

Pakistan: UK-origin shredded indicatives edged up by $5/t d-o-d to $395/t CFR Qasim.

Bangladesh: UK-origin shredded prices stood at $395/t CFR Chattogram, up $2/t d-o-d.

Turkiye: US-origin HMS (80:20) bulk prices inched up by $1/t at $364/t CFR Turkiye compared to yesterday.