South Asia: Indian ferrous scrap market sees renewed interest post-holidays

• Turkiye sees slight dip amid currency pressure
  
  
• Pak market stable, activity slows in Bangladesh
  
  

South Asia's ferrous scrap market saw mixed activity, with divergent pricing trends, as key buyers in India, Pakistan, Bangladesh, and Turkiye responded to local steel demand shifts and recent international events.

Indian buyers returned with renewed interest after Diwali and Chhath puja, lifting imported scrap demand slightly, while Pakistan maintained steady procurement amid stable domestic steel sales. In Bangladesh, demand remained soft due to a sluggish steel market but is expected to rise in the winter with an uptick in construction activities. Meanwhile, Turkiye's market softened slightly, impacted by currency fluctuations and recent US election outcomes, with sellers adjusting offers accordingly.

Overview

India: In India, UK-origin shredded indicatives stood at $393/t CFR Nhava Sheva, a rise of $1/t d-o-d. Imported scrap buying picked up slightly today as buyers returned with renewed interest after the Diwali and Chhath Puja holidays. The domestic steel market also strengthened, with key markets driving prices up by INR 300-500/t d-o-d. Major mills actively secured large volumes of scrap, while suppliers held firm on higher offer levels due to strong demand.

Indicative offers for shredded from the US and the UK/Europe stood at $390-395/t CFR Nhava Sheva, while HMS (80:20) from the UK/Europe was assessed at $365-370/t CFR.

New Zealand and Australian HMS (80:20) offers were heard at $370-375/t CFR, with HMS (90:10) and hand-loaded scraps from Kuwait and South Africa at around $380/t CFR.

Pakistan: In Pakistan, UK-origin shredded indicatives were at $395/t CFR Qasim, reflecting a marginal decline of $2/t d-o-d. Demand for imported scrap held steady amid stable steel sales in the domestic market. A prominent steel mill official commented, "The market is relatively quiet - demand is stable, and steel sales are consistent, though margins have tightened. Industry production is running at 30-40% of capacity. Cargoes arriving recently are being offered at $390-395/t, though buyers can secure material with bids at $385/t."

Offers for UK/European containerised shredded scrap were reported at $395-400/t CFR Qasim, with UAE-origin offers slightly higher, at around $400-405/t CFR.

Bangladesh: Bangladeshi scrap buyers exhibited minimal interest due to a slowdown in the domestic steel market, leading to reduced scrap consumption. UK-origin shredded prices held steady d-o-d at $397/t CFR Chattogram. Shredded offers from the UK/Europe were assessed at $395-400/t CFR Chattogram, with HMS (80:20) priced at $380-385/t CFR. However, demand is expected to pick up in the winter as construction activities are expected to improve.

Turkiye: The Turkish imported ferrous scrap market saw a slight dip, with sentiment initially boosted by the outcome of the US election but later impacted by the euro's sharp depreciation against the dollar. Offers for bulk US-origin HMS (80:20) scrap stood at $365/t CFR, a slight drop but largely stable d-o-d.

Sellers from the EU were offering as low as $360/t CFR due to currency pressures. Despite a positive outlook tied to potential Chinese stimulus in response to Trump's election, short-term optimism was tempered by the weaker euro, influencing EU recyclers to accept lower prices. Turkish mills also felt less urgency to restock due to sluggish domestic rebar demand and stable export prices of rebars at $590/t FOB.

Price assessments

India: UK-origin shredded indicatives remained stable d-o-d to $392/t CFR Nhava Sheva.

Pakistan: UK-origin shredded indicatives inched down by $2/t d-o-d to $395/t CFR Qasim.

Bangladesh: UK-origin shredded prices were assessed unchanged d-o-d at $397/t CFR Chattogram.

Turkiye: US-origin HMS (80:20) bulk prices remained largely stable d-o-d at $365/t CFR Turkiye.