South Asia: Imported ferrous scrap prices remain stable amid weak demand, cautious buying

• Indian buyers stay away amid ample inventories
  
  
• Turkish tags soften on weak rebar sales, oversupply
  
  

The South Asian scrap market remained subdued, marked by weak demand and cautious buyer activity across India, Pakistan, and Bangladesh. Prices were stable d-o-d in all three regions.

Indian buyers refrained from importing amid ample inventories and challenging market conditions. Pakistan faced sluggish demand, with a bid-offer gap and smog-induced disruptions in Lahore adding to liquidity challenges. In Bangladesh, financial constraints and letter of credit (LC) restrictions restricted purchases despite steady offers.

Meanwhile, Turkiye's imported scrap prices softened due to oversupply in Europe and muted rebar demand, though some mills hinted at renewed interest ahead of the holiday season.

Overview

India: Indian buyers stayed on the sidelines, showing little interest in booking imported scrap due to subdued market sentiment. Offers for shredded from the US and the UK/Europe were quoted at $385-390/tonne (t) CFR Nhava Sheva, with indicatives for UK-origin shredded stable d-o-d at $388/t CFR. Meanwhile, HMS (80:20) was priced at $365-370/t CFR.

West African HMS (80:20) offers ranged at $365-375/t CFR west coast India, varying with loading conditions.

A trader noted, "The market is sluggish, and buying interest is absent as most buyers are holding sufficient inventories."

Another trader remarked, "Predicting the market is tough. Indian buyers are not matching their bids to global levels. Shredded bids stand at $380-384/t CFR Mundra, HMS at $360-362/t, and HMS 1 at $370-372/t CFR Nhava Sheva. This could well be the bottom."

Pakistan: Pakistan's imported scrap market remained sluggish today as buyers stayed cautious amid weak rebar demand and liquidity challenges. UK-origin shredded indicatives remained unchanged d-o-d at $390/t CFR, with offers for European shredded at $392-395/t CFR Qasim. Mills refrained from booking, targeting $380/t for February shipments.

The lockdown in Lahore due to smog further dampened activity, with sufficient inventories covering needs until January. Local scrap was priced at PKR 144,000-148,000/t ($518-532/t), while rebar prices dipped slightly to PKR 248,000-252,000/t ($892-906/t), as sellers pushed cash sales to address liquidity pressures. Despite some recent bookings, the wide bid-offer gap continues to limit transactions, with market sentiment remaining muted.

Bangladesh: Bangladesh's imported scrap market remained subdued today due to weak steel demand and ongoing financial constraints, including LC restrictions. UK-origin shredded prices were flat d-o-d at $390/t CFR Chattogram, with offers at $390-395/t CFR Chattogram. Meanwhile, HMS (80:20) was quoted at $380-385/t CFR.

Domestic scrap prices stood at BDT 50,000-53,000/t ($418-443/t), billets at BDT 67,500/t ($565/t), and rebars at BDT 78,000-80,000/t ($653-670/t). Mills stayed cautious, limiting purchases as inventories remained high and financial challenges persisted.

Turkiye: Turkish imported scrap prices edged down today following a recent US-origin deal at $353/t CFR Iskenderun, reflecting ongoing oversupply in Europe and weak demand from Turkish mills. US-origin HMS (80:20) bulk prices dropped by $1/t d-o-d to $353/t CFR Turkiye, with indicative values cited at $353-355/t CFR. Meanwhile, EU-origin material hovered at around $350/t CFR amid limited rebar sales and cautious buying by mills.

European recyclers, constrained by weak domestic demand, continued offering competitive prices, keeping pressure on the market. Despite muted rebar exports, some sell-side sources reported a slight uptick in mill interest amid the approaching holiday season, but the outlook remains largely pessimistic for a near-term price recovery.

Price assessments

India: UK-origin shredded indicatives remained stable d-o-d at $388/t CFR Nhava Sheva.

Pakistan: UK-origin shredded indicatives remained unchanged d-o-d at $390/t CFR.

Bangladesh: UK-origin shredded prices were flat d-o-d at $390/t CFR Chattogram.

Turkiye: US-origin HMS (80:20) bulk prices dropped by $1/t d-o-d to $353/t CFR Turkiye.