South Asia: Imported ferrous scrap prices see mixed trends as buyer caution weighs on offers

• Turkish mills wait for lower prices amid weak rebar sales
  
  
• Lack of support from projects keeps Bangladeshi buyers at bay
  
  

The South Asian imported ferrous scrap markets were relatively weak today, with mixed trends observed. While India and Pakistan recorded slight d-o-d declines in prices, Bangladesh was stable d-o-d. Meanwhile, Turkiye also witnessed stable pricing.

There was a slowdown across India, Pakistan, Bangladesh, and Turkiye, with cautious buyers resisting high offers. In India specifically, buyers held off on imports, setting targets for mid-January in hopes of improved market conditions. In Pakistan, prices of shredded and HMS showed downward movements, while in Bangladesh, demand for PNS and busheling remained steady at slightly lower levels.

India: Imported scrap offers declined d-o-d amid a slowdown in activity. As per a major trading house representative, the market is holding back some volume, with suppliers expected to shut operations, starting this Saturday. Players are delaying imports to mid-January, expecting better market conditions.

Shredded offers from Europe and the US were quoted at 390-395/t, while HMS from the EU was priced at $366-370/t.

Pakistan: Prices showed a slight decline d-o-d, with suppliers' offers at $390-395/t for shredded with buyer interest ranging within $388-390/t CFR.

As per market participants, loadings of around 1,000-t shredded from the UAE were being offered at $400/t CFR Qasim.

Bangladesh: Imported scrap prices remained stable d-o-d. While suppliers did not receive much interest for HMS offers above $370/t, there was notable demand for PNS and busheling scrap at $380-385/t CFR.

According to a Dhaka-based importer, shredded offers from the EU were priced at around $400/t, but buyers showed interest only at levels below $380/t.

End-users are not procuring much, and the lack of support from the project segment is putting downward pressure on the market.

Recently, around 1,000 t of PNS from Malaysia were sold at $395/t CFR Chattogram for prompt shipment, and another parcel of 1,000 t of HMS (90:10) from Australia was booked at $360/t CFR Chattogram.

As per market insiders, one vessel booked recently at $362-365/t from the US comprising 30,000-32,000/t on a CFR Chattogram basis.

Turkiye: Turkish imported ferrous scrap prices remained steady d-o-d, with limited activity reported. As rebar sales weakened d-o-d, there was a deadlock between sellers, who held firm on their offers, and mills, who waited for lower prices. Despite the slowdown in rebar sales and limited global demand for scrap, Turkish mills expect softer prices in the near future.

A recycler stated, "Mills have definitely stepped back for now." The source noted that although they were uncertain about how many more cargoes they needed, they could afford to wait a bit.

A Turkish mill-side participant said, "The recent increase in scrap prices was driven by Turkish mills. Other regions, such as European mills, did not support this move. As a result, we expect prices to decrease."

Another Turkish mill source stated, "Nobody is going to pay $350-351/t CFR, but with the holiday season, the market is very uncertain."

US sellers' target of $355/t CFR was not feasible for mills.

Price assessments

India: UK-origin shredded indicatives were down by $3/t d-o-d at $390/t CFR Nhava Sheva.

Pakistan: UK-origin shredded indicatives edged down by $1/t d-o-d to $393/t CFR Qasim.

Bangladesh: UK-origin shredded was assessed at $394/t CFR Chattogram, stable d-o-d.

Turkiye: US-origin HMS (80:20) bulk was assessed at $351/t CFR Turkiye, stable d-o-d.