South Asia: Imported ferrous scrap prices remain under pressure; offers drop in key markets

• Indian buyers avoid imports due to high costs and weak steel demand
  
  
• Turkiye's scrap prices drop further as mills push for lower offers
  
  

South Asia's imported scrap markets remained under pressure, reflecting sluggish demand across major regions amid steel sector challenges and global economic uncertainties. India, Pakistan, and Bangladesh grappled with weak sentiment driven by low steel demand, high import costs, and cautious trading atmosphere.

In Turkiye, scrap prices faced downward pressure, with buyers targeting lower levels while sellers anticipated a potential recovery.

Offers for UK/Europe shredded scrap remained unchanged in India, while prices dropped by $3/t in Pakistan and $1/t in Bangladesh. US-origin bulk HMS (80:20) offers to Turkiye dropped by $4/t.

Overview

India: India's imported scrap market faced weak demand due to a sluggish domestic steel sector and a depreciating rupee, which pushed up import costs. Shredded scrap offers stood at $370-375/t CFR Nhava Sheva, while buyers capped bids at $365-370/t CFR. HMS (80:20) offers from Europe and West Africa ranged $355-360/t CFR but saw limited takers. Buyers preferred domestic pig iron, adding to import challenges. The rupee's near-record low of 87 against the USD dampened market sentiment further, with activity expected to remain subdued ahead of the Union Budget.

Pakistan: Pakistan's imported scrap market remained sluggish, with mills operating at 40-45% capacity due to weak steel demand. Shredded scrap offers from the UK/Europe hovered at $380-385/t CFR Qasim, while buyers targeted $380-383/t, reflecting cautious sentiment.

Suppliers faced pressure to reduce offers further, with market activity subdued and seasonal factors adding to the slowdown. The near-term outlook suggests prices may stabilise around $375-380/t as trading volumes remain limited and demand shows slow signs of recovery.

Bangladesh: Bangladeshi buyers showed minimal interest in imported scrap due to a sluggish domestic steel market and reduced government project activity. Major mills, holding ample inventories, stayed away from fresh bookings. Australian shredded scrap was offered at $375-380/t CFR Chattogram, HMS (80:20) at $365/t CFR, and PNS scrap at $390/t CFR.

A trader noted, "The market remains largely stable compared to last week, but there are no bids this week. Bulk inquiries are ongoing, but bid-offer gaps persist. Key mills are operating cautiously, with limited purchases anticipated."

Turkiye: The Turkish imported scrap market saw a sharp price drop as mills secured lower-priced US-origin cargoes, with HMS (80:20) assessed at $337/t CFR, down $4/t. European recyclers struggled with unyielding collection costs, and mills pressed for even lower offers, targeting sub-$327/t CFR. Despite the bearish sentiment, some sellers anticipated a February recovery, citing stronger US domestic fundamentals potentially lifting export prices. Meanwhile, European recyclers faced challenges in adjusting collection costs, hinting at limited flexibility in pricing. Buyers and sellers remained at odds over future price expectations, keeping the market uncertain.

Price assessment

India: UK-origin shredded indicatives were assessed unchanged d-o-d at $375/t CFR Nhava Sheva.

Pakistan: UK-origin shredded indicatives were assessed at $381/t CFR Qasim, down by $3/t d-o-d.

Bangladesh: UK-origin shredded stood at $385/t CFR Chattogram, down by $1/t d-o-d.

Turkiye: US-origin HMS (80:20) bulk edged down by $4/t d-o-d to $341/t CFR Turkiye.