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

The South Asian ferrous scrap markets experienced a slowdown today. In India, demand for imported scrap remained moderate as buyers adopted a "wait-and-see" approach, driven by concerns over declining offers and domestic prices, as well as stricter GST checks and the upcoming holidays. Pakistan's market was similarly sluggish, with limited bookings and challenges stemming from weak rebar sales. Bangladesh also remained cautious, with buyers postponing purchases due to monsoon flooding and economic slowdowns. In contrast, the Turkish imported scrap market remained steady, with prices holding relatively stable.

Overview

India: In India, demand for imported scrap remained moderate on Wednesday, as buyers adopted a cautious "wait-and-see" stance due to concerns over potential declines in offers. This sentiment was heightened by falling domestic scrap and sponge prices, influenced by stricter GST checks and the upcoming Dussehra holidays. Indicative offers for shredded scrap from the US and UK/Europe were assessed at $400-405/t CFR Nhava Sheva, while HMS (80:20) was priced at $380-390/t CFR.

Pakistan: Pakistan's imported scrap market remained sluggish, with limited bookings as mills face weak rebar sales and reduced production levels. Offers for shredded scrap from the UK/Europe reached $405-410/t CFR Qasim, while UAE-origin HMS ranged from $385/t for regular HMS to $395-400/t for sheared HMS. Domestic scrap prices remained firm at PKR 140,000-145,000/t, while billets were priced around PKR 205,000-210,000/t. Rebar were being offered at PKR 245,000-250,000/t.

A trader revealed, "Despite slightly improved international prices, Pakistani mills are hesitant to procure, citing payment challenges and a subdued local market."

Bangladesh: Bangladesh's imported scrap market showed signs of caution today, as buyers delayed purchases amid persistent monsoon flooding, economic slowdowns, and suspended projects. With steel production operating at about 50-60% of typical capacity due to low demand and high inventory levels, most buyers have postponed trades, planning to reassess market conditions next month.

Domestic rebar prices fluctuated, with offers at BDT 85,000-86,000/t in Chattogram and between BDT 78,000-82,000/t in Dhaka, while local scrap prices remained at BDT 52,000/t.

This restrained market sentiment follows discussions on fostering a business-friendly environment to attract foreign investment, as emphasised by South Korea's ambassador, potentially paving the way for future stability in the scrap and steel sectors.

Turkiye: The Turkish imported scrap market held steady today. US-origin HMS (80:20) offers were around $390/t, while EU-origin offers were slightly lower at $385/t. Recent trades for HMS (80:20) were in the $385-388/t range, reflecting limited movement in prices.

Steel mills in Turkiye continued to build their November scrap inventories at comparable prices. Meanwhile, some local auto and shipbreaking scrap prices saw slight declines due to softening domestic demand.

Price assessments

India: UK-origin shredded scrap indicatives were stable at $405/t CFR Nhava Sheva d-o-d.

Pakistan: UK-origin shredded indicatives edged up by $1/t to $408/t CFR Qasim compared to the previous day.

Bangladesh: UK-origin shredded prices inched up by $1/t to $408/t CFR Chattogram d-o-d.

Turkiye: US-origin HMS (80:20) bulk prices remained unchanged d-o-d at $386/t CFR Turkiye.