South Asia: India's imported scrap market softens on anticipation of lower offers
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- Pakistan, Bangladesh markets see subdued demand
- Turkiye turns bearish amid weakness in finished steel
In South Asia, imported scrap markets continued to face turbulence as regional demand waned amid broader global market influences.
In India, buyer hesitancy prevailed, with traders noting a bid-offer gap driven by expectations of price drops, spurred by declining markets in China and Turkiye. Pakistan's market saw limited activity, with buyers favouring local scrap due to competitive pricing and sluggish domestic steel demand.
Meanwhile, Bangladesh's purchasing interest remained muted, as poor finished steel demand and stalled construction projects undercut buying enthusiasm. In Turkiye, bearish sentiment pushed prices lower, with recent trades reflecting adjustments in the wake of weak demand for finished steel exports, all against a backdrop of constrained short-sea markets.
Overview
India: India's demand for imported scrap softened further as buyers held off on purchases, anticipating price drops following declines in Chinese and Turkish markets. This bid-offer gap led to minimal trade, with shredded from the US and the UK/Europe offered at $400-405/t CFR Nhava Sheva, while buyers eyed $390-395/t CFR. HMS (80:20) was offered at $375-380/t CFR, though buyers were hesitant to exceed $375/t CFR.
Traders described the market as sluggish, with low confidence and expectations of further corrections due to weak Turkish sentiments impacting the Indian market outlook.
Pakistan: Pakistan's imported scrap market remained subdued, as weak domestic steel demand and competitive local scrap prices deterred buyers. Shredded from the UK/Europe was offered at $402-405/t CFR Qasim, slightly above buyers' targets. Local rebar sales were slow, with no major construction activities supporting demand.
Market insiders noted that local scrap, priced around PKR 135,000/t, remained more cost-effective than imported materials. Despite minor price adjustments, imported scrap interest was limited due to ongoing liquidity issues and competitive pricing on domestic alternatives.
Bangladesh: Bangladeshi buyers remained quiet as sluggish demand for finished steel and halted construction activities kept buying interest low. Indicative offers for UK/European shredded scrap lingered around $400-405/t CFR Chattogram, while HMS (80:20) offers stood at $390-394/t CFR.
A mill source stated, "The market remains sluggish due to weak finished steel demand. Persistent rains have delayed construction projects, and no new projects are being announced."
Turkiye: The Turkish imported ferrous scrap market saw a continued downward correction as bearish sentiment persisted. A recent deal by a Marmara mill for European-origin HMS (80:20) at $367/t CFR and shredded at $387/t CFR for November shipment indicated a softer market, with prices aligning close to the tradable range of $370/t CFR for European materials. Meanwhile, offers for US-origin HMS (80:20) were assessed at $372/t CFR, reflecting a $3/t decline.
Turkish mills highlighted the "normalisation" of scrap prices as being inevitable due to weaker-than-anticipated demand for finished steel, particularly exports. Despite increased dockside scrap inflows in Europe, short-sea market constraints prevented a steep price drop.
Market participants believe that prices could test $360/t CFR, but suppliers remain hesitant to accept these lower levels. Although demand has slowed, high billet offers to keep scrap relatively attractive, sustaining interest for shipments later in the year.
Price assessments
India: UK-origin shredded scrap indicatives remained stable at $398/t CFR Nhava Sheva compared to the previous day.
Pakistan: UK-origin shredded indicatives edge down by $2/t to $403/t CFR Qasim compared to the previous day.
Bangladesh: UK-origin shredded prices stood at $404/t CFR Chattogram, up by $2/t compared to the previous day.
Turkiye: US-origin HMS (80:20) bulk prices edge down by $4/t at $371/t CFR Turkiye compared previous day.
