South Asia: Imported scrap prices witness mixed trend; Turkish market signals recovery

In South Asia, the ferrous scrap market exhibited mixed signals. In India, demand for imported scrap weakened as buyers opted for cost-competitive domestic alternatives and anticipated further price corrections, leading to discrepancies between bids and offers.

Pakistani interest in scrap also dwindled due to a subdued steel market amid rainy weather, though prices saw a slight increase. Meanwhile, in Bangladesh, severe flooding significantly impacted market activity resulted in minimal buying interest. Conversely, the Turkish market showed signs of recovery, with increased scrap prices driven by improved demand and limited offers, suggesting a tightening market.

Overview

India: India's demand for imported scrap remained weak as buyers showed little interest due to better options in the domestic market, a slowdown in the steel sector, and expectations of further price correction. Discrepancies between bids and offers also persisted. Indicative offers for shredded scrap from the US and UK/Europe were around $385-390/t CFR Nhava Sheva, but buyers sought prices below $385/t CFR. Offers for HMS (80:20) from the UK/Europe and West Africa ranged from $365-375/t CFR, while buyers targeted below $360/t for UK/Europe-origin HMS and $365-370/t for West African scraps.

A trading company representative remarked, "Market sentiment is negative, and with the fluctuations in Euro against the US dollar, viability remains low. Suppliers are getting better returns in the domestic market."

Another seller noted, "The Indian market is slow, with no recent inquiries. We have not sold anything lately."

Pakistan: Pakistani buyers showed moderate interest in imported scrap due to the typical bill week during the last 10 days of the month, which led to a slowdown in payments. The steel market was also subdued by rainy conditions across Pakistan, further limiting buyer interest. However, offers slightly increased compared to the previous week due to higher prices from suppliers amidst currency fluctuations.

Indicative offers for shredded scrap from the UK/Europe were at $400-403/t CFR Qasim.

A steel mill official remarked, "The market is slow. Since it was bill week, cash flow was constrained. Additionally, the rainy season has weakened steel demand."

Another official added, "The market has seen a slight increase, with prices around $398-400/t. Some inquiries are for $405-$407/t, but material is still available at $398/t. The Turkish market is also slightly up, but China remains very weak. The market is quite unpredictable right now, and the weather isn't helping steel consumption."

A trader source noted, "Our EU suppliers cannot offer at these levels, so we are not making any offers. It is more viable for them to sell domestically."

Bangladesh: Bangladeshi buyers remained passive today with minimal interest due to the recent floods and rainy conditions. Market participants reported that US containerized shredded scrap was offered at $390-395/t CFR Chattogram, while Australian shredded scrap was at $400/t CFR. HMS (80:20) from Brazil was priced around $380/t CFR. However, buyers expected further price reductions and showed little interest.

Severe flooding in Feni, Bangladesh, has stranded nearly 5 million people and resulted in at least 18 deaths. The floodwaters have submerged large parts of the city and inundated 11 districts, complicating rescue operations. Roads are blocked, and power and communication outages have worsened the crisis. Volunteers and rescue teams are working tirelessly to reach those trapped in their homes, with many in urgent need of food, water, and medical supplies as they await relief.

Turkiye: The Turkish imported scrap market saw a modest increase in prices due to improved sell-side sentiment and stronger demand from mills. Offers for US orgin bulk HMS (80:20) were assessed at $364/t CFR, up by $1/t from the previous day. A deal for Baltic-origin HMS was concluded at $363.5/t CFR and bonus and shredded scrap at $383.5/t CFR for September shipment was confirmed, indicating a stable market.

Market participants noted that prices might have bottomed out at $360/t CFR, leading to a "seller's market" with sellers holding out for higher prices. Shortsea scrap prices also increased to $360/t CFR, narrowing the spread between deep-sea and shortsea scrap to just $3-4/t. Overall, limited offers and rising prices suggest a tightening market.

Price assessments

• India: UK-origin shredded scrap indicatives edge down by $1/t at $390/t CFR Nhava Sheva from previous day.
  
  
• Pakistan: UK-origin shredded indicatives remains stable at $400/t CFR Qasim from previous day.
  
  
• Bangladesh: UK-origin shredded prices were remains stable at $400/t CFR Chattogram from previous day.
  
  
• Turkiye: US-origin HMS (80:20) bulk prices were edged up by $1/t at $364/t CFR Turkiye from previous day.
  
  

Outlook

In the near term, imported scrap offers are likely to remain range-bound with slight fluctuations with Turkiye's rebound. However, Indian buyers are unlikely to book significant volumes considering the local market sentiments. Pakistani offers may continue to remain around $400-405/t CFR levels, with limited interest amidst monsoons.