South Asia: India's imported scrap demand continues to remain dull on cheaper domestic alternatives

The South Asian market remained impacted by multiple challenges. In India, sluggish demand for imported scrap stemmed from cheaper alternatives like sponge iron and domestic scrap along with limited support from the downstream steel sector. Pakistan faced constrained demand due to rising electricity and gas costs, preventing rebar producers from passing on these expenses. Meanwhile, Bangladeshi buyers favoured short transit materials from nearby regions, avoiding UK/Europe scrap due to high freight rates. In Turkiye, deepsea imported ferrous scrap prices softened, with mills hesitant to buy amid falling billet prices but are expected to resume purchases soon.

Overview

India: In India, the demand for imported scrap remained sluggish due to the availability of more cost-effective alternatives like sponge iron and domestic scrap. Additionally, the lack of support from the downstream steel sector affected scrap consumption. Indicative offers for shredded scrap from the US and UK/Europe were around $410-420/t CFR Nhava Sheva, while buyers aimed for $400-405/t CFR. Offers for HMS (80:20) were at $390-395/t CFR, with buyers looking for $385-390/t CFR.

A trading company representative stated, "Early in the week, there was some activity but the market has quietened. Buyers are primarily focused on pricing and are only willing to offer below $400/t. There is little interest in material priced above that."

Pakistan: In Pakistan, demand for imported scrap remained limited due to higher operational costs amid rising electricity and gas charges. Rebar producers were unable to pass these costs onto finished steel products, hence, scrap consumption remained limited. Indicative offers for shredded scrap from the UK/Europe were assessed at $425-430/t CFR Qasim.

Bangladesh: Bangladeshi buyers showed increased interest in sourcing short transit materials from Australia, Hong Kong, New Zealand, and the UAE. Demand for UK/Europe material remained slack due to unviability and higher freight rates. Indicative offers for shredded scrap from the UK/Europe were assessed at $427-430/t CFR Chattogram, while HMS (80:20) stood at $405-410/t CFR.

Turkiye: Turkish deepsea imported ferrous scrap prices softened as European and Baltic recyclers struggled to attract demand from Turkish mills. Offers for US-origin bulk HMS (80:20) scraps were at $386/t CFR, down $2/mt from the previous day. Indicative tradable values for EU-origin HMS (80:20) were around $380/t CFR, but offers at $383/t CFR struggled to find buyers. The market sentiment was negative, with expectations of further price corrections amid declining billet prices. Mills were not interested in buying scrap due to cheap billets but are expected to resume purchases soon.

Price assessments

India: UK-origin shredded scrap indicatives were assessed at $415/t CFR Nhava Sheva, up by $2/t d-o-d.

Pakistan: UK-origin shredded indicatives were assessed unchanged d-o-d at $428/t CFR Qasim.

Bangladesh: UK-origin shredded prices were assessed unchanged d-o-d at $430/t CFR Chattogram.

Turkiye: US-origin HMS (80:20) bulk prices were assessed at $386/t CFR Turkiye, down by $2/t d-o-d.