South Asia: India's imported scrap market softens ahead of festive holidays

• India's imported scrap market slows down ahead of festival
  
  
• Pakistani buyers opt for previously-booked cargoes
  
  

The South Asian scrap market experienced a notable slowdown, influenced by seasonal factors and shifting market dynamics across the region. In India, the demand for imported scrap has diminished further due to the Diwali holiday, coupled with a softening domestic market that has left buyers hesitant to engage in new seaborne bookings. Meanwhile, Pakistani buyers are facing competition from previously booked materials, creating pressure on pricing, and Bangladeshi buyers are largely inactive due to difficulties in opening letters of credit and a sluggish steel market. In Turkiye, the decline in domestic rebar sales impacted scrap prices, as mills adjust to current market conditions.

Imported scrap offers dropped further today across markets compared to last closing on Friday.

Overview

India: In India, imported scrap demand weakened further today due to the Diwali holiday slowdown, alongside a softening domestic market that fueled buyer uncertainty and kept them cautious about seaborne bookings. Indicative offers for shredded scrap from the UK/Europe stood at $390-395/t CFR Nhava Sheva, though buyers preferred levels around $385-390/t CFR.

Offers for HMS (80:20) from the UK/Europe and West Africa ranged between $370-380/t CFR, depending on loading conditions, while buyers sought UK/Europe HMS at slightly lower levels, around $365-368/t CFR.

Pakistan: Pakistani buyers slowed down as previously booked materials entered the market at more competitive prices than fresh offerings. Weak rebar sales further pressured the market downward.

Indicative offers for shredded scrap from the UK/Europe stood at $388-395/t CFR Qasim, with reports of around 2,000 t of shredded scrap booked at $388-390/t CFR Qasim.

Bangladesh: Bangladeshi buyers stayed quiet today due to difficulties in opening LCs and a sluggish domestic steel market. Indicative offers for shredded scrap from Australia/New Zealand were heard at $400-405/t CFR Chattogram, while buyer interest hovered around $395-400/t CFR. HMS 80:20 offers were around $390-395/t CFR, though no deals were reported today.

Turkiye: The Turkish imported ferrous scrap market saw a steady decline over the week as Turkish mills faced weaker domestic rebar sales, allowing them to exert pressure on scrap prices. Offers for US-origin HMS (80:20) scrap was assessed at $364/t CFR, down slightly by $1/t. Slow domestic rebar sales and limited export activity allowed mills to negotiate lower scrap prices. However, with previous strong rebar sales, mills can absorb this short-term slowdown, aiming to secure scrap at favorable prices before likely restocking.

Price assessments

India: UK-origin shredded scrap indicatives edged down by $1/t to $393/t CFR Nhava Sheva compared to last closing.

Pakistan: UK-origin shredded indicatives dropped by $5/t d-o-d to $390/t CFR Qasim.

Bangladesh: UK-origin shredded prices remained unchanged at $397/t CFR Chattogram, compared to last closing on Friday.

Turkiye: US-origin HMS (80:20) bulk prices edged down by $1/t to $364/t CFR Turkiye compared to last closing on Friday.