South Asia: Imported ferrous scrap offers remain largely stable d-o-d

• South Asia markets continue to see weak trading
  
  
• Bangladesh demand drops amid slow infra activity
  
  

The South Asian and Turkish ferrous scrap markets remained subdued today, reflecting ongoing challenges across key regions. India, Pakistan, and Bangladesh grappled with weak demand for finished steel, sluggish infrastructure development, and cautious buyer sentiment, while Turkiye stayed stagnant amid limited supply and seller resistance. With buyers pushing for lower prices and sellers holding out for a potential recovery, trading activity across these regions remained limited, highlighting the persistent volatility in global scrap markets.

Overview

India: Indian buyers remained largely inactive today amid weak finished steel sales and the availability of competitively priced domestic scrap. Adding to the market's woes, rising steel imports, especially from nations with favourable free trade agreements (FTAs) with India, have intensified pressure on the domestic industry. In response, the Ministry of Steel has proposed a 25% safeguard duty on select steel products to protect local manufacturers. Market participants believe that if this measure is implemented, trading activity could see a revival.

Shredded scrap offers from the UK and Europe were reported at $380-385/t CFR Nhava Sheva, while HMS (80:20) stood at $360-365/t CFR, though buyers indicated workable levels below $350-355/t CFR. West African HMS (80:20) offers ranged between $360-370/t CFR, depending on loading terms.

"In India, unless import duties are enforced, the situation will likely remain stagnant," remarked a market insider.

"Liquidity constraints, weak demand, and ongoing production cuts continue to weigh heavily on the market," another market participant added.

Pakistan: Pakistan's imported scrap market remained moderate today, with buyers adopting a cautious stance amid sluggish steel sales and ongoing market volatility. Shredded scrap offers from the UK and Europe were assessed at $380-385/t CFR Qasim, though buyers indicated workable levels slightly lower at $378-383/t CFR.

In the domestic market, local scrap prices were heard at PKR 140,000-142,000/t. Rebars traded at PKR 245,000-250,000/t, and billet prices stood at PKR 205,000-210,000/t exw.

Bangladesh: Bangladesh's imported scrap market remained sluggish today as buyers held out for lower prices than those currently offered. Weak demand for finished steel, driven by a bearish domestic market and slow infrastructure development, has further dampened scrap consumption.

Shredded scrap from Australia was offered at $380-385/t CFR Chattogram, while buyers placed bids at around $375/t. South African HMS (80:20) offers stood at $350/t CFR, with buyer interest closer to $345/t. Busheling scrap from Malaysia was heard at $410/t CFR, while oversized PNS from Hong Kong was offered at $415/t CFR.

Turkiye: The Turkish imported ferrous scrap market remained quiet today, with US-origin bulk HMS (80:20) prices stable at $338/t CFR. Sellers refrained from offering material, anticipating a potential price recovery, while buyers targeted lower levels of around $335/t CFR. Limited supply from Europe, driven by high collection costs and reduced dock flows, kept sellers cautious. With both sides in a wait-and-see mode, market activity was subdued, and no significant deals were reported.

Price assessments

India: UK-origin shredded indicatives were assessed stable at $380/t CFR Nhava Sheva, d-o-d.

Pakistan: UK-origin shredded indicatives remained flat d-o-d at $382/t CFR .

Bangladesh: UK-origin shredded prices edge down by $3/t to $383/t CFR Chattogram compared to the last closing.

Turkiye: US-origin HMS (80:20) bulk prices remained unchanged d-o-d at $338/t CFR Turkiye.