South Asia: Imported ferrous scrap offers remain largely stable amid limited buying interest

In the South Asian scrap market today, activity across India, Pakistan, Bangladesh, and Turkiye reflected a mix of subdued demand and price stability. In India, buyers are leaning towards local sources due to ongoing price discrepancies and a slow domestic steel market. Pakistan's import market has slowed due to reduced rebar sales and squeezed margins, while Bangladesh continues to see weak demand and processing delays. Meanwhile, Turkiye's scrap offers remain stable, with recent deals maintaining firm pricing.

Overview

India: Indian buyers remained subdued due to persistent price discrepancies and a slowdown in the domestic steel market. They preferred sourcing scrap and sponge iron locally for its cost effectiveness.

Indicative offers for shredded scrap from the US and UK/Europe were assessed at $385-390/t CFR Nhava Sheva, while HMS (80:20) offers were at $365-370/t CFR.

Pakistan: In Pakistan, buyers have reduced their procurement of imported scrap due to a slowdown in rebar sales caused by the monsoons and squeezed margins. Indicative offers for shredded scrap from the UK/Europe were at $395-400/t CFR Qasim.

A steel mill official commented, "Demand for imported scrap is slow. The monsoons have dampened rebar demand, and higher expenses have squeezed margins. We're only fulfilling our existing orders."

In the domestic market, local scrap prices ranged between PKR 145,000-148,000/t, while rebars were priced at PKR 250,000-260,000/t, depending on payment terms.

Bangladesh: Bangladesh's imported scrap market saw subdued activity. Workable levels for imported scrap remained low due to weak demand and delays in LC processing. US-origin bulk HMS offers were at $395-398/t CFR, with bids below $385-388/t. Mills showed reduced interest, operating at only 50% of previous levels, and rebar sales remained lacklustre. Suppliers mostly halted offers to assess market trends, with sea freight costs and declining material collection rates affecting profitability. Weak construction activity suggests continued challenges for long product producers.

Turkiye: Turkish imported scrap offers remained largely stable d-o-d following the recent deals from the US and Baltic region.

• A US-origin supplier recently sold a bulk cargo of HMS (80:20) at $371/t to a mill in the West Black Sea region.
  
  
• Another US-origin bulk shipment, which included HMS (80:20), shredded, and bonus grades, was booked by a mill in the Mediterranean region at $370/t and $390/t CFR, respectively.
  
  
• A Baltic (Lithuania)-origin bulk scrap cargo was sold to an East Marmara mill at $368/t for HMS (80:20) and $388/t for bonus grades.
  
  

Price assessments

• India: UK-origin shredded scrap indicatives remained unchanged from the previous day at $390/t CFR Nhava Sheva.
  
  
• Pakistan: UK-origin shredded indicatives inched up by $1/t d-o-d to $401/t CFR Qasim.
  
  
• Bangladesh: UK-origin shredded prices edged down by $2/t from the previous day to $403/t CFR Chattogram.
  
  
• Turkiye: US-origin HMS (80:20) bulk prices remained unchanged d-o-d at $370/t CFR Turkiye.