South Asia: Imported scrap offers see slight drop d-o-d, India in holiday mood

The South Asian imported scrap market experienced mixed activity yesterday, shaped by regional challenges and economic conditions. In India, demand softened as the Navratri and Dussehra festivities led to a holiday slowdown, with no firm bids or offers reported. Pakistan's market remained under pressure due to liquidity constraints and weak steel sales, while Bangladeshi buyers postponed purchases amid economic slowdowns, ongoing monsoon flooding, and high inventory levels. In contrast, Turkish mills were actively securing scrap to meet robust rebar production demand for November.

Overview

India: In India, imported scrap demand slowed on Friday as the Navratri and Dussehra festivities set a holiday tone across the market. No firm bids or offers were reported, reflecting the festive mood. Indicative offers of US and UK/European shredded scrap softened slightly to $395-400/t CFR Nhava Sheva, while HMS (80:20) offers stood at $375-380/t CFR.

Pakistan: In Pakistan, imported scrap buying has slowed as poor finished steel sales, low production levels driven by liquidity challenges, and a reduction in government projects and construction activities weigh on demand. Indicative offers for shredded scrap from the UK/Europe stood at $405-410/t CFR Qasim.

Bangladesh: Bangladesh's imported scrap market was cautious today as buyers held off on purchases due to persistent monsoon flooding, a sluggish economy, and stalled projects. Shredded scrap offers from Australia/New Zealand were at $415-420/t CFR Chattogram, with HMS (80:20) at $390-395/t CFR. Steel production is running at only 50-60% capacity, reflecting low demand and high inventories, with most buyers planning to reassess trades next month.

Turkiye: Turkish mills are actively procuring imported scrap to support strong domestic rebar production anticipated for November, driving buyers to secure supplies amid limited availability. Recent transactions include Venezuela-origin HMS (80:20) secured at $382/t CFR by an Aegean-based mill, along with EU-origin HMS (80:20) at $381/t and $378/t CFR. Additionally, Germany-origin HMS (80:20) was booked at $376/t CFR by mills in the same region.

Price assessments

India: UK-origin shredded scrap indicatives edged down by $1/t to $404/t CFR Nhava Sheva d-o-d.

Pakistan: UK-origin shredded indicatives edged up by $1/t to $408/t CFR Qasim compared to the previous day.

Bangladesh: UK-origin shredded prices inched down by $1/t to $407/t CFR Chattogram d-o-d.

Turkiye: US-origin HMS (80:20) bulk prices remained unchanged d-o-d at $388/t CFR Turkiye.