South Asia: Indian buyers cautions ahead of Dussehra holidays; Turkish scrap offers rise

The South Asian ferrous scrap market remained slow today. In India, demand slowed ahead of the Dussehra holidays, with buyers concerned about the sustainability of recent price surges. Pakistan's market faced similar challenges due to a slowdown in the domestic steel sector, while in Bangladesh, monsoons and flooding dampened scrap demand and impacted steel production. Meanwhile, Turkiye's strong demand for November shipments had pushed up deepsea scrap prices, signalling potential implications for South Asian markets.

Overview

India: In India, imported scrap demand remained sluggish ahead of the Dussehra holidays. Buyers expressed concern over the recent spike in offer prices, uncertain if it would last.

A trader said, "HMS and shredded prices are stable, though iron ore is trending down. The market's recent surge is testing actual demand as we approach winter restocking."

Another trader remarked, "With Dussehra on 12 October, business will be slow down; India will shut down from Friday."

A third trader echoed similar sentiments adding, "Although the market is quiet, but with Turkiye's uptrend, and it is considered as a key market indicator, any downward adjustment in India may be limited."

Indicative offers for shredded scrap from the US and UK/Europe were assessed at $400-405/t CFR Nhava Sheva, while that of HMS (80:20) was at $380-385/t CFR.

Pakistan: Pakistan's imported scrap market continued to lag due to sluggish domestic steel demand and weak rebar sales. Indicative offers for shredded scrap from the UK/Europe were assessed at $405-410/t CFR Qasim. In the domestic market, local scrap prices were around PKR 140,000/t, rebars at PKR 250,000/t, and billets at PKR 205,000/t.

Notably, around 2,000 t of UK-origin shredded scrap were booked at around $405-407/t CFR Qasim.

Bangladesh: In Bangladesh, demand for imported scrap stayed weak due to monsoons and flooding, leading to a slowdown in the domestic steel market.

A local steel mill representative noted, "We're purchasing scrap cautiously as finished steel sales are low, our production levels are at around 60% capacity. With stock in the pipeline, we'll resume buying next month."

Indicative offers for shredded scrap from the UK/Europe were assessed at $405-410/t CFR Chattogram, while HMS (80:20) stood at $395-400/t CFR.

Turkiye: Turkish deepsea imporedt scrap prices rose, driven by strong demand for November shipments. US and Baltic-origin deals confirmed included Marmara and Iskenderun mills booking HMS (80:20) at $387-388/t CFR. Baltic recyclers aimed for $388/t CFR, citing higher collection costs of around Euro 300/t. European offers were adjusted to $380-383/t CFR, factoring in the euro's recent depreciation.

Mills reportedly booked 20 cargoes for November, with potential demand for 15-20 more. Domestic rebar demand also fueled this momentum, with local rebar prices rising to $620-650/t exw, creating an incentive for continued scrap imports.

Price assessments

India: UK-origin shredded scrap indicatives remained stable at $405/t CFR Nhava Sheva compared to previous day.

Pakistan: UK-origin shredded indicatives edged down by $1/t to $407/t CFR Qasim compared to previous day.

Bangladesh: UK-origin shredded prices were at $408/t CFR Chattogram, stable compared to previous day.

Turkiye: US-origin HMS (80:20) bulk prices were edge up by $2/t at $388/t CFR Turkiye compared to previous day.