South Asia: Imported ferrous scrap trade slows down d-o-d amid unsupportive steel market

• High steel inventories keep Indian buyers away
  
  
• Slow rebar sales, smog impact Pak market
  
  

The South Asian ferrous scrap market witnessed a slowdown today. In India, demand remained subdued due to high finished steel inventories, while sellers maintained firm offers despite limited buyer interest. Pakistan's market saw sluggish movement, with slow rebar sales and weak local demand, compounded by smog and limited government projects. Meanwhile, Bangladesh's scrap market held steady, with cautious buying and expectations of increased activity once banking restrictions ease. In Turkiye, the market experienced a slight uptick, driven by recent deals, but hesitation from buyers due to stagnant steel prices tempered the optimism.

Overview

India: India's demand for imported scrap remained subdued today, with end-users showing limited buying interest due to high inventories of finished steel, keeping production levels at around 80-90%. Sellers from the US and UK/Europe held firm on shredded scrap offers at $400-405/t CFR Nhava Sheva, while buyers aimed for workable levels closer to $390-395/t CFR. Meanwhile, HMS (80:20) offers from UK/Europe and West Africa were at $370-380/t CFR.

Pakistan: Pakistan's domestic steel market saw slow activity today due to sluggish rebar sales, driven by ample stockpiles, limited government projects, and smog conditions, particularly in Punjab. Buyers remained cautious and held back on imported scrap purchases, with UK/Europe offers at $395-400/t CFR Qasim, while buyers targeted $392-393/t CFR.

A steel mill official noted, "Local demand is weak, with mills carrying unused inventories and little chance of government projects resuming soon." Another mill official said, "The market is stagnant with rebar sales at a standstill; prices have held steady at around PKR 250,000/t, and only a price increase might spur some movement."

Bangladesh: Bangladesh's imported scrap market remained steady with limited transactions as buyers kept bids lower than offer levels. Shredded scrap from Australia was offered at $400-405/t, HMS at $390/t, while Hong Kong PNS and Malaysian busheling were priced above $425/t and $430/t, respectively. Buyers were evaluating US bulk scrap offers, with expectations of increased demand once LC restrictions ease.

Turkiye: Imported ferrous scrap price remained largely stable, with earlier deals reported at $362-363/t CFR. Tradable levels hovered between $360-365/t CFR as the market remained cautious, balancing a modest uptrend with steady supply. While some traders anticipate further increases, mills are hesitant, noting limited support from stagnant long steel prices. For instance, rebar remains stuck at $585-590/t FOB.

Price assessments

India: UK-origin shredded scrap indicatives inched down by $3/t to $396/t CFR Nhava Sheva.

Pakistan: UK-origin shredded indicatives slipped by $1/t to $397/t CFR Qasim.

Bangladesh: UK-origin shredded prices were at $402/t CFR Chattogram, unchanged d-o-d.

Turkiye: US-origin HMS (80:20) bulk prices remained unchanged d-o-d at $363/t CFR Turkiye.