South Asia: India's imported scrap market opens slow post-holidays

• Steel demand wanes
  
  
• Prices largely stable
  
  

The South Asian ferrous scrap markets opened slow today. India's market was quiet, as participants waited for price clarity, having just returned from the Navratri and Dussehra break. Pakistan continued to experience limited buying interest amid weak finished steel sales, while domestic scrap held a price advantage over imports. In Bangladesh, buyers slowed down scrap bookings due to ample inventory and low steel demand, influenced by rain and flooding in several areas. Meanwhile, Turkiye's demand waned after a robust buying phase, with a potential recovery hinging on China's stimulus measures.

Overview

India: In India, demand for imported scrap stayed subdued due to the week-long holiday spirit surrounding Navratri and Dussehra, which wrapped up over the weekend. Though the market reopened today, activity was sluggish as buyers awaited clearer price trends, hoping for lower workable levels than current offers. Indicative shredded scrap offers from the US and UK/Europe stood at $400-410/t CFR Nhava Sheva, while buyers targeted $395-400/t CFR Nhava Sheva. HMS (80:20) offers were at $375-380/t CFR Nhava Sheva.

A trader remarked, "Today is the first day back after the holiday. Tomorrow will give a better sense of the market, but buyers are interested."

A supplier added, "Sentiment is cautiously positive, but the bid-offer gap persists. UK shredded containers are being offered at $400-410/t, while buyers look at $395-400/t. Brazilian HMS (80:20) is around $385/t. Freight rates from the US have increased, creating some uncertainty, but there is talk of a potential uptick in the US domestic market, which could limit availability next month."

Pakistan: Market activity in Pakistan stayed sluggish today amid limited buying interest, with sentiment weak, as finished steel sales remained slow. Indicative offers for shredded scrap from the UK/Europe hovered at $405-410/t CFR Qasim, drawing little buyer interest.

Domestic scrap prices continued to be more competitive than imported options, with local scrap prices hovering at PKR 140,000-142,000/t, sources indicated.

Bangladesh: In Bangladesh, buyers held back on imported scrap bookings due to ample inventories and sluggish steel demand, affected by rain and flooding in several areas. Indicative offers for shredded scrap from the UK/Europe were at around $400-410/t CFR Chattogram, while HMS (80:20) was offered at $390-395/t CFR.

Turkiye: Turkish scrap demand has slowed following an extended buying phase, with local rebar demand also weakening. Most recent bookings are scheduled for November shipments. EU suppliers, pressured by weak domestic demand, are struggling to maintain margins. Turkiye's demand may revive if China's stimulus revisions lead to a boost in global steel demand.

Last week, Chinese steel futures declined as markets cautiously awaited a major announcement, which ultimately lacked specifics on the fiscal package size, leaving traders on edge. Meanwhile, the US scrap market is projected to strengthen in November, with exporters resisting lower bids from Turkish buyers.

Price assessments

India: UK-origin shredded scrap indicatives edged down by $4/t to $400/t CFR Nhava Sheva compared to the last close on Friday.

Pakistan: UK-origin shredded indicatives remained stable at $408/t CFR Qasim compared to the last close on Friday.

Bangladesh: UK-origin shredded prices were at $404/t CFR Chattogram, down by $3/t compared to the previous close on Friday.

Turkiye: US-origin HMS (80:20) bulk prices edged down by $5/t to $383/t CFR Turkiye compared to the last close on Friday.