South Asia: Imported scrap offers rise in India; Pakistan, Bangladesh markets remain under pressure
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The South Asian and Turkish imported scrap markets faced varying levels of demand and activity as economic challenges and cautious buyer sentiment shaped the landscape.
In India, demand for imported scrap remained moderate despite a recent uptick in inquiries, while Pakistan's market struggled with sluggish demand, prompting production cuts at many steel mills. Bangladesh also saw weak interest in imported scrap due to declining construction activity and political uncertainties. Meanwhile, the Turkish market stayed relatively stable, with US sellers withholding offers in anticipation of higher prices, though Turkish mills expressed more conservative expectations for the near term.
Overview
India: In India, the demand for imported scrap was moderate. Although inquiries had increased over the past few days, they had not yet translated into actual transactions due to buyer caution.
Market participants indicated that domestic raw material prices were firm, which was expected to push scrap prices upward. While prices had seen a slight rise, business activity had not picked up, mainly due to buyer uncertainty. Despite this, traders and suppliers remained optimistic, anticipating a surge in demand for steel ahead of the Diwali festival and the holiday season.
Indicative offers for shredded scrap from the US and UK/Europe ranged between $390-400/t CFR Nhava Sheva, while HMS (80:20) scrap from West Africa and the UK was priced around $370-380/t.
Pakistan: The demand for imported scrap in Pakistan remained sluggish due to a slowdown in the domestic steel market. As a result, most steel mills implemented production cuts, operating at only 40-60% of their capacity.
Indicative offers for shredded scrap from the UK/Europe were reported at $395-400/t CFR Qasim.
Bangladesh: Imported scrap demand in Bangladesh remained sluggish due to weak construction activity and low buying interest, especially among rebar sellers and steel suppliers involved in government projects. Economic instability, political uncertainties, and trade route challenges further pressured demand. Buyers showed limited interest in imports from distant regions like Australia and South America.
Indicative offers for shredded scrap from the UK/Europe were heard at $405-410/t CFR, while HMS (80:20) was at $385-390/t CFR. Australia-origin HMS (90:10) was offered at $400/t CFR, though buyers preferred $390/t CFR levels.
Turkiye: The Turkish imported scrap market remained largely stable today. US sellers are withholding offers, anticipating higher prices in the near future. Turkish imports of US-origin HMS (80:20) were assessed at $368/t CFR. Indicative values for US/Baltic-origin scrap were around $368-370/t, while UK-origin HMS (80:20) was offered at $365/t CFR. US suppliers were holding firm at a minimum of $370/t CFR, expecting scrap prices to rise by $30-50/t by year-end.
Turkish mills, however, expressed more conservative expectations, predicting scrap prices to remain steady around $365-370/t due to doubts over sustained rebar demand. Negotiations remained slow, as both mills and exporters assessed market conditions before making further moves.
Price assessments
India: UK-origin shredded scrap indicatives edged up by $6/t at $398/t CFR Nhava Sheva compared toto last closing on Friday.
Pakistan: UK-origin shredded indicatives rose by $6/t at $396/t CFR Qasim compared to last closing on Friday.
Bangladesh: UK-origin shredded prices were at $403/t CFR Chattogram, up by $4/t compared to to last closing on Friday.
Turkiye: US-origin HMS (80:20) bulk prices remained stable at $368/t CFR Turkiye compared to last closing on Friday.
