South Asia: Imported scrap market remains unchanged d-o-d on weak demand-11 Sep
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Recent trends in the South Asian scrap market revealed varying levels of activity and pricing stability across key regions. In India, buyers are currently hesitant to engage in imported scrap transactions due to the attractive pricing and ample supply of domestic scrap, reflecting a broader lack of confidence amid market pressures.
On the other hand, in Pakistan, scrap imports have slowed due to decreased government project activity and weakened steel demand. Meanwhile, in Bangladesh, payment challenges and persistently low steel demand have led to a cautious approach toward imported scrap. Conversely, Turkish mills have secured two bulk cargoes of US scrap at stable prices, indicating a steadier market position in the region.
Overview
India: Indian buyers have remained largely inactive, showing little interest in booking imported scrap due to the competitive pricing and abundant availability of domestic scrap. With the current pressures in the local market, there is a noticeable lack of confidence among buyers in securing imported scrap.
A market participant explained: "Buyers are hesitant to commit to imported scrap deliveries that will arrive in the next three months, especially with the ongoing uncertainty in the domestic steel market. They're opting for domestic scrap instead."
Indicative offers for shredded scrap from the US and UK/Europe ranged between $390-395/tonne (t), though some sellers quoted as high as $400-405/t CFR Nhava Sheva. Offers for HMS 80:20 were assessed at $365-370/t CFR.
Pakistan: Pakistani buyers have reduced scrap imports due to a slowdown in government projects, which has led to weakened steel demand and, consequently, lower scrap demand.
A steel mill official said: "The market is subdued, with tight cash flows. The government has yet to announce new infrastructure projects, and steel prices are under pressure. Despite the end of the monsoon season, steel demand remains weak. To boost sales, sellers are offering grade 60 bars at a minimum of PKR 250,000/t in cash and up to PKR 260,000/t on credit."
Indicative offers for shredded scrap were $400/t CFR Qasim for material from the UK/Europe and $405/t CFR from the UAE.
Bangladesh: Bangladeshi buyers have been largely inactive in booking imported scrap due to payment challenges and weak steel demand. Indicative offers for shredded scrap from the UK/Europe ranged between $400-405/t CFR, while HMS (80:20) offers were at $390-395/t CFR.
Domestic scrap prices were reported at BDT 54,000-55,000/t. Rebar prices were BDT 82,000-85,000/t ex-Dhaka and BDT 89,000-90,000/t ex-Chattogram.
Turkiye: Turkish mills have recently secured two bulk cargoes of US scrap at stable prices. A US-origin supplier sold a bulk shipment to a Mediterranean region-based mill, which included 16,000 t of HMS (80:20) at $370/t, 6,000 t of shredded scrap at $390/t, and 7,000 t of PNS at $390/t CFR Turkiye.
Additionally, the same supplier provided another bulk cargo to a mill in the West Marmara Region, with HMS (85:15) priced at $372.5/t and shredded scrap at $390/t CFR Turkiye.
Price assessments
India: UK-origin shredded scrap indicatives were kept unchanged d-o-d at $395/t CFR Nhava Sheva.
Pakistan: UK-origin shredded indicatives were stable at $400/t CFR Qasim from the previous day.
Bangladesh: UK-origin shredded prices were at $402/t CFR Chattogram, unchanged from the previous day.
Turkiye: US-origin HMS (80:20) bulk prices were kept stable at $370/t CFR Turkiye from the previous day.
