South Asia: India, Pak see dull demand for imported scrap, Bangladesh sees recovery amid shortages

• Improved rebar sales, banking operations boost Bangladesh
  
  
• Weak euro, higher collection costs keep Turkish prices stable
  
  

The South Asian imported scrap markets displayed mixed dynamics, with varying activity across key regions. India's market remained sluggish amid cautious buying, while Pakistan saw muted demand due to subdued steel sales and a cautious mood following the holidays. In Bangladesh, a slight improvement in scrap demand was noted, driven by domestic shortages and rebar price hikes, though prices still declined.

Notably, for UK-origin shredded in particular, India and Bangladesh recorded slight declines of $2/tonne (t) and $1/t d-o-d, while Pakistan's prices were stable d-o-d.

Meanwhile, Turkiye's market was subdued, as participants awaited a post-holiday recovery. Prices of US-origin HMS 80:20 bulk were stable d-o-d, with overall market movements restrained by high collection costs and seasonal factors.

Overview

India: India's imported scrap market continued to see sluggish activity today, with buyers maintaining a cautious approach. Indicative offers for shredded from the US and UK/Europe stood at $385-390/t CFR Nhava Sheva. Offers for HMS (80:20) from the UK/Europe were quoted at $360-365/t CFR, while West African material was priced at $365-375/t, depending on container loading conditions.

A trader commented, "The market remains slow, with holiday sentiment lingering. Business conditions are challenging, and Indian prices are not offering much support."

Pakistan: In Pakistan, demand for imported scrap remained muted, as subdued steel sales dampened buying interest. Additionally, many participants have recently returned from holidays; these chose to observe market trends before committing to significant volumes.

Indicative offers for shredded from the UK/Europe were quoted at $390-395/t CFR Qasim.

Bangladesh: In Bangladesh, demand for imported scrap showed slight improvement amid shortages in the domestic market, coupled with better rebar sales. Leading steel mills raised rebar prices by BDT 3,000-4,000/t ($25-33/t). The imported scrap market reflected steady sentiments, driven by stable local demand and improved banking operations.

Offers for Australian shredded were at $385/t CFR Chattogram, while Malaysian sheared and Hong Kong Holo bundles were both quoted at $370/t CFR. Domestic scrap prices stood at BDT 52,000-55,000/t ($438-453/t) with rebar prices firm at BDT 79,000-83,000/t ($651-684/t).

A trader noted, "Bangladesh is in sleeping mode. There is a scrap shortage, but buyers remain reluctant to pay workable prices."

Turkiye: The Turkish imported scrap market remained subdued, with post-holiday activity yet to pick up. US-origin HMS (80:20) offers were at $346-350/t CFR, while EU-origin was at $340-345/t CFR.

Sellers maintained firm targets, but factors such as weak euro performance and high collection costs capped price movements. Winter weather constrained Baltic scrap flows, and US recyclers held back, awaiting better prices.

Price assessments

India: UK-origin shredded indicatives were assessed at $385/t CFR Nhava Sheva, down by $2/t compared to the last close on Friday.

Pakistan: UK-origin shredded indicatives were assessed stable at $390/t CFR Qasim, compared to the last close on Friday.

Bangladesh: UK-origin shredded was down by $1/t to $394/t CFR Chattogram, compared to the last close on Friday.

Turkiye: US-origin HMS (80:20) bulk was assessed stable at $346/t CFR Turkiye, compared to the last close on Friday.