South Asia: Imported scrap market sees mixed trends; Turkiye bullish on strong rebar sales
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The South Asian imported scrap markets showed mixed activities today. India witnessed moderate demand amid cautious buying due to the recent rebar price hikes. Pakistan's market remained sluggish due to liquidity issues in the downstream steel sector. In Bangladesh, the market softened further as weak construction activities and political uncertainties dampened purchasing interest, despite a rise in global scrap offers. Notably, bulk scrap imports into Bangladesh surged by 17% y-o-y over January-September 2024. Meanwhile, Turkiye's market strengthened, driven by strong domestic rebar sales and restocking needs, though mills resisted higher scrap bids.
Overview
India: In India, buyers remained active in securing imported scrap, with a few deals reportedly concluded today. Indicative offers for shredded scrap from the US and UK/Europe were heard at $400-405/t CFR Nhava Sheva, while HMS (80:20) from the UK/Europe and West Africa was offered at $375-380/t CFR.
According to a trader, "Demand for imported scrap remained moderate as buyers exercised caution. Indian primary steel mills have announced a rebar price hike of around INR 2,000/t for October, which may influence the secondary market. However, the impact has yet to be seen, so buyers are taking a wait-and-watch approach."
Another trader noted, "Demand has improved, with buyers inquiring actively. The market is up due to rising iron ore and sponge prices, but I believe workable levels will stay at $400-405/t."
Pakistan: In Pakistan, demand for imported scrap remained sluggish as the downstream steel sector continues to face liquidity challenges, leading to need-based purchases. Indicative offers for shredded scrap from the UK/Europe were heard at $400-410/t CFR Qasim.
Bangladesh: Bangladesh's imported scrap market softened today due to weak construction activity and low purchasing interest, especially from rebar sellers. Despite rising global offers, buyers remain cautious amid economic instability and political uncertainties.
A bulk scrap vessel from Japan, carrying 10,000 t of busheling scrap, was reportedly booked at $405/t CFR Chattogram.
Notably, as per BigMint's vessel line-up data, bulk scrap imports into Bangladesh rose 17% y-o-y in January-September 2024 to 2.51 million tonnes, mainly driven by supplies from the US, Australia, and Japan.
Turkiye: The Turkish imported scrap market saw a price rise, driven by strong domestic rebar sales and a need for restocking. US-origin HMS (80:20) scrap prices were assessed at $382/t CFR, up $7/t from the previous day. Mills, benefiting from high rebar demand, showed a bullish sentiment, with expectations for continued price increases. Recyclers, buoyed by factors like US port strikes and rising iron ore prices, set offers at $385-388/t CFR for US/Baltic-origin HMS. However, mills resisted higher bids, capping them at $382/t CFR. Supply tightness in key Turkish regions also contributed to the optimistic market outlook.
Price assessments
India: UK-origin shredded scrap indicatives inched up d-o-d by $2/t to $403/t CFR Nhava Sheva.
Pakistan: UK-origin shredded indicatives edged up by $1/t to $404/t CFR Qasim d-o-d.
Bangladesh: UK-origin shredded prices were at $406/t CFR Chattogram, up by $2/t d-o-d.
Turkiye: US-origin HMS (80:20) bulk prices rose by $7/t to $385/t CFR Turkiye d-o-d.
