South Asia: Indian imported scrap buyers silent amid bearish steel market sentiments

• Indian buyers quiet amid muted steel market, holiday lull
  
  
• Pakistan, Bangladesh struggle as steel demand remains subdued
  
  
• Turkish scrap market at a standstill
  
  

The South Asian and Turkish scrap markets witnessed a slowdown, as cautious buying and muted demand dominate the landscape. In India, falling domestic steel and scrap prices, coupled with the Diwali holiday lull, have kept buyers on the sidelines. Pakistan and Bangladesh are witnessing a similar trend, with competitive offers and weak domestic demand putting pressure on the market. Meanwhile, in Turkiye, both buyers and sellers are holding back, creating a stalemate as mills resist higher prices amid macroeconomic uncertainty.

Overview

India: Indian buyers remained cautious, holding back from booking imported scrap due to falling domestic steel and scrap prices, alongside muted demand. The upcoming Diwali festival has further contributed to the slowdown in activity. Indicative offers for shredded scrap from the US and UK/Europe were assessed at $/t CFR Nhava Sheva, while HMS (80:20) stood at $/t CFR.

A representative from a trading company stated, "The market is likely to see a decline, driven by the bearish performance in finished steel and rebar."

Pakistan: Pakistani buyers remained cautious, adopting a wait-and-see approach due to the influx of fresh arrivals at competitive rates and a slowdown in the domestic steel market. Indicative offers for shredded scrap from the UK/Europe have dropped to $395-400/t CFR Qasim, although buyers find workable levels around $390-392/t CFR.

A steel mill official commented, "A lot of material has arrived recently but people are struggling to release it and are offering at much lower prices. Cash flows have worsened."

Meanwhile, in the domestic market, some steel mills have raised rebar prices by PKR 4,000/t, bringing them to PKR 238,000-240,000/t ex-factory.

Bangladesh: Bangladesh's imported scrap market remained sluggish today, with limited buying on weak demand. Buyers are cautious, with expectations for HMS 80/20 bulk hovering around $370/t CFR. Major players have stayed out of the market since July and August, respectively, while others continue to make small, regular purchases.

South American HMS (90:10) was offered at $355-365/t CFR Chattogram, while GI bundles from the Philippines and Thailand were at $360-365/t CFR.

Australian shredded offers stood at $405/t, but bids were at $395/t, with little interest in bulk purchases.

Market demand for finished products, including steel bars and billets, is very poor, further contributing to the slow activity.

Turkiye: The Turkish imported scrap market remained at a standstill today, with prices unchanged and minimal activity seen. Buyers and sellers have stepped back, creating a stalemate as mills aim for lower prices, while suppliers are holding firm. Turkish premium US HMS (80:20) was assessed at $372/t CFR, with indicative offers from the US and Baltic regions at $370-375/t CFR. However, buyer targets were below $370/t.

No formal bids or offers were reported, although Turkish mills still need to secure scrap for November shipments, sellers appear confident that waiting wont hurt their position.

Price assessments

India: UK-origin shredded scrap indicatives edged down by $3/t at $397/t CFR Nhava Sheva compared to previous day.

Pakistan: UK-origin shredded indicatives dropped by $5/t d-o-d to $395/t CFR Qasim.

Bangladesh: UK-origin shredded prices were assessed at $400/t CFR Chattogram, down by $3/t compared to previous day.

Turkiye: US-origin HMS (80:20) bulk prices remained unchanged d-o-d at $372/t CFR Turkiye.