South Asia: Imported ferrous scrap prices remain largely stable d-o-d amid limited market activity

• Indian buyers continue to prefer domestic scrap amid lower tags
  
  
• Turkish scrap prices inch up, though mills show limited interest
  
  

The South Asian ferrous scrap markets were largely stable d-o-d, with limited activity across India, Pakistan, and Bangladesh. India witnessed some transactions, though weak demand and competitive domestic prices kept the market subdued. Additionally, Bangladesh and Pakistan saw no major price movements amid limited activity.

Notably, UK-origin shredded was down by $2/tonne (t) in India but was stable across Pakistan and Bangladesh.

Meanwhile, prices of US-origin HMS (80:20) edged up by $1/t in Turkiye. However, the overall market was subdued, under pressure due to muted demand from steel mills.

India: India's imported scrap market saw nominal activity, with only a few deals reported. Buyers were largely absent, as prices of domestic scrap were lower than those of imported material.

Offers for HMS (80:20) from Australia/New Zealand were at around $355/t, while shredded from the same origins was offered at $368-372/t, both on a CFR Chennai basis.

A major trader was heard to have sold UK-origin HMS (80:20) with 2% impurities at $350/t to a Punjab-based buyer. As per market insiders, traders are keen to sell HMS (80:20) at $355-$360/t, but many believe customers are unlikely to purchase at these levels. UK-origin HMS (80:20) with 3-4% impurities was bid at $345/t CFR.

Shredded from the UK/Europe saw bids at $365/t CFR, with offers at $375/t CFR for Mundra and Nhava Sheva.

West African-origin HMS (80:20) was bid at $355/t for cargoes of 24-25 t, with offers at $360/t CFR. Latin American sub-grade HMS (50:50) was sold at $327/t CFR to a Gujarat-based buyer and at $325/t CFR to a Chennai-based one.

Notably, sources stated that in recent days, some buyers have faced quality issues such as the presence of impurities, including sand and snow-related dust, in certain grades of scrap from the Middle East.

Pakistan: Pakistan's imported scrap market witnessed better trade activity, with freights remaining unchanged. Unlike in India, no material quality issues were observed in Pakistan.

A 1,000-t parcel of shredded from the UK/Europe was sold at $378/t CFR Qasim.

Bangladesh: The imported ferrous market remained slow in Bangladesh amid limited demand, with no active buying observed. Offers for HMS from the UK/Europe hovered at around $365-370/t, whereas shredded from Australia and the UK/EU were offered at $378-385/t CFR Chattogram.

Turkiye: Turkish deep-sea imported ferrous scrap prices inched up d-o-d, with workable levels for US/Baltic-origin HMS (80:20) reported at $340-345/t CFR. However, mills showed limited interest in restocking, leading to a stand-off as sellers pushed for higher prices.

EU recyclers similarly targeted $340-345/t CFR, with price adjustments primarily due to currency fluctuations.

Despite firmer seller positions, subdued mill demand and weak downstream steel sales kept the market restrained. Muted demand from Turkish mills was driven by slow rebar sales and declining prices, which reduced the urgency for scrap purchases.

Additionally, Turkiye's leading steelmaker, Kardemir, opened rebar and wire rod order books at lower levels, which market participants believe will limit any significant scrap price increases.

Price assessments

India: UK-origin shredded indicatives were assessed at $374/t CFR Nhava Sheva, down by $2/t compared to the last close on Friday.

Pakistan: UK-origin shredded indicatives were at $381/t CFR Qasim, stable compared to Friday.

Bangladesh: UK-origin shredded was assessed at $384/t CFR Chattogram, stable compared to Friday.

Turkiye: US-origin HMS (80:20) bulk scrap edged up by $1/t to $341/t CFR Turkiye compared to Friday.