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

The South Asian imported ferrous scrap market faced significant challenges, with demand weakening in India, Pakistan, Bangladesh, and Turkiye.

In India, the sluggish steel market and bid-offer discrepancies limited interest in imported scrap. Pakistan experienced a slowdown in steel production, which affected buyer engagement, while Bangladesh struggled with weak demand and letter of credit (LC) issues.

Turkiye saw declining prices due to oversupply, yet strong domestic rebar sales provided some stability for local mills.

Overview

Demand fails to pick up in India amid bid-offer mismatch: Demand for imported scrap has remained weak in India due to bid-offer discrepancies and a sluggish steel market. Indicative offers for shredded scrap from the US and the UK/Europe were assessed at $385-390/tonne (t) CFR Nhava Sheva, while HMS (80:20) offers from West Africa and Europe stood at $360-370/t CFR.

A trader noted, "The market is quiet, and buyers are not interested in the current offer levels. Their bids are approximately $8-12/t lower than the offers on the table."

Notably, approximately 3,000 t of shredded scrap from the US and the UK/Europe were reported sold at $390/t CFR on India's east coast.

Sluggish steel market tempers scrap demand in Pakistan: Pakistani buyers were sluggish today, influenced by a slowdown in the domestic steel market and tight cash flows caused by looming electricity and gas bills. Additionally, bookings were being made based on immediate needs, as steel production across the industry hovers at around 50-60% and overall demand remains weak. Indicative offers for shredded scrap from the UK and Europe were reported at $390-395/t CFR Qasim.

Bangladesh witnesses flagging buying interest: Bangladeshi buyers demonstrated limited interest in imported scrap due to sluggish steel demand and challenges related to opening letters of credit (LCs). Currently, mills are receiving previously booked orders, which has lessened the urgency for new imports. Recent indicative offers for shredded scrap from Australia were at around $405-410/t CFR Chattogram, while offers from PNS in Malaysia touched $415-420/t CFR. Despite these offers, no buyers were willing to engage at these price points.

Turkish prices drop on oversupply from Europe: The Turkish imported scrap market saw a further decline in prices, driven by sluggish demand and an oversupply from European recyclers. HMS (80:20) scrap was traded at $360-365/t CFR, with European-origin material priced lower due to increased supply, weak demand, and reduced collection costs. US-origin cargoes held firmer at around $367/t CFR, but ongoing negotiations and potential strikes at US ports created uncertainty over future shipments.

Despite falling scrap prices, strong domestic rebar sales in Turkiye at $600-610/t exw kept mills busy, though concerns linger about rebar buyers seeking price reductions.

Price assessments

India: UK-origin shredded scrap indicatives remained unchanged compared to the last close on Friday at $389/t CFR Nhava Sheva.

Pakistan: UK-origin shredded indicatives remained stable at $393/t CFR Qasim compared to the last close.

Bangladesh: UK-origin shredded prices were reported to be stable at $400/t CFR Chattogram in comparison to the last closing on Friday.

Turkiye: US-origin HMS (80:20) bulk prices edged down by $1/t to $365/t CFR Turkiye, compared to the last closing on Saturday.