South Asia: Imported scrap market witnesses further slowdown amid weak steel sales
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- Bid-offer disparities prevail in India, Pakistan
- Lower European prices push down Turkish rates
The South Asian scrap markets faced a slow day as domestic steel demand remained weak and economic challenges loomed across the region. Indian buyers held back from making significant purchases, noting mismatches in bid and offer levels, while Pakistan's market continued with its sluggishness, with imported scrap offers slightly above buyers' expectations. In Bangladesh, the market stayed quiet as construction delays and payment issues weighed on demand. Meanwhile, Turkiye also saw a downturn in imported scrap prices, with new deals reflecting softer tradable values.
Overview
India: Indian buyers remained on the sidelines today, citing bid-offer mismatches and domestic market volatility. Shredded offers from the UK and Europe hovered around $400-410/t CFR Nhava Sheva, while buyers aimed for $390-395/t CFR. HMS (80:20) from the UK, Europe, and West Africa saw offers in the $380-385/t CFR range, though buyers indicated workable levels closer to $375-380/t CFR.
A buyer from southern India noted, "We have cut imports by 30% and shifted towards local scrap, which is more favourable. We will increase this reliance over the next month."
Meanwhile, a primary steel producer purchased a recently arrived cargo of approximately 10,000 t of mixed US scrap, including shredded at $400-405/t CFR Vizag and CR busheling at around $415/t CFR.
Pakistan: The demand for imported scrap was sluggish as the domestic steel market continued to slow down. Indicative offers for shredded from the UK/Europe were assessed at $400-405/t CFR Qasim, slightly above buyers' expectations.
A trader commented, "The market is down, and buyers are hesitant, as local scrap is cheaper than imported material. Steel demand is dull, with shredded from the UK priced at $405."
Bangladesh: Bangladesh's imported scrap market remained quiet today, with demand subdued due to ongoing economic challenges and rains slowing down construction projects. Delays in letter of credit (LC) openings and pending payment clearances deterred some suppliers, creating disadvantages for smaller buyers. Mills are holding sufficient inventories, reducing their sponge intake, and some manufacturers are liquidating rebar stocks at distressed prices to offset the sluggish demand. Indicative offers for shredded from the UK/Europe were at around $400-405/t CFR Chattogram, with HMS (80:20) at $390-395/t CFR.
A trader noted, "Challenges in clearing old payments and initiating new LCs, as well as the slow economy and lacklustre construction activity, have caused rebar demand to dip, forcing some sellers to cut prices."
A steel mill official echoed these sentiments: "The market remains slow, with limited new construction projects being announced."
Turkiye: The Turkish imported scrap market saw a decline, driven by a new Baltic-origin deal and softer tradable prices. Turkish mills continued purchasing for November shipments, securing Baltic-origin HMS (80:20) at $375/t CFR and shredded at $395/t CFR, while a US-origin HMS (80:20) deal was also concluded at $377/t CFR. US-origin HMS (80:20) workable prices have now consolidated below $380/t CFR, meeting mill expectations. Despite limited European offers, sellers indicated prices between $370-375/t CFR.
A major Turkish trading house explained, "European scrap prices are driving down overall bulk rates for Turkiye, but US prices remain firm above $380/t. With some US cargoes ready for prompt shipment and Turkiye still needing over 10 vessels for November, this gives US suppliers an edge in pricing."
Price assessments
India: UK-origin shredded indicatives remained stable d-o-d at $398/t CFR Nhava Sheva.
Pakistan: UK-origin shredded indicatives remained stable d-o-d at $405/t CFR Qasim.
Bangladesh: UK-origin shredded prices stood at $402/t CFR Chattogram, stable d-o-d.
Turkiye: US-origin HMS (80:20) bulk prices edged down by $5/t d-o-d to $375/t CFR Turkiye.
