South Asia: Weak demand, currency devaluation impact India's imported scrap market

• South Asian tags hold firm d-o-d across markets

  
  
  

• Turkish prices stable d-o-d, hike expected soon

  
  
  

The South Asian imported ferrous scrap market witnessed varied activity across key regions, with Indian market pressured by weak buying interest and rupee depreciation. Pakistan experienced sluggish demand amid cautious buyer sentiment, while Bangladesh showed slight improvement, supported by better banking conditions and rising steel demand. Meanwhile, Turkish scrap market remained stable, with recent deals reflecting a cautious but steady tone.

In particular, prices of UK-origin shredded indicatives were stable d-o-d in all three regions in South Asia, while prices of bulk US-origin HMS (80:20) held firm d-o-d in Turkiye.

Overview

India: India's imported scrap market remained slow today, with shredded offers from the UK at $385-390/t CFR Nhava Sheva and HMS 1 from Africa and South America at $370-375/t. Weak buying interest prevailed, as buyers awaited the outcomes of safeguard investigations into cheap steel imports. The Indian rupee's depreciation to 85.75 against the US dollar added pressure on import costs, further dampening sentiment.

Increased production of pellets, sponge iron, TMT, and billets across India has not translated into higher demand, with no signs of the typical first-quarter price recovery. Traders expect the market to remain subdued for months, as oversupply weighs on prices and activity remains limited.

Pakistan: Pakistan's imported scrap market remained sluggish, as buyers exercised caution, awaiting clearer price trends following the holidays. Shredded offers from the UK/Europe were heard at $390-395/t CFR Qasim.

In the domestic market, some mills raised rebar prices by PKR 3,000-4,000/t ($11-14/t) with Grade 60 bars quoted at PKR 240,000-242,000/t ($861-868/t). However, the scrap market remained softer, despite moderate demand, with prices at PKR 138,000-140,000/t ($495-502/t). Meanwhile, billets were at PKR 205,000-210,000/t ($735-753/t).

Bangladesh: Bangladesh's imported scrap demand showed slight improvement, supported by better banking conditions and rising steel demand. Additionally, in the domestic market, steady rebar prices and firming scrap offers indicated gradual recovery.

Australian shredded offers were at $385-390/t CFR Chattogram, while Malaysian sheared and Hong Kong Holo bundles were quoted at $370-375/t CFR. Domestic scrap prices hovered at BDT 52,000-55,000/t ($438-453/t), with rebar tags holding firm at BDT 80,000-83,000/t ($651-684/t).

Turkiye: The Turkish imported scrap market remained steady, with US-origin HMS (80:20) assessed at $346/t CFR, reflecting stable sentiments after recent deals. Two bookings by mills at $345-347/t CFR set the tone, though market participants remained cautious about price direction.

Positive expectations in the US domestic market added uncertainty, as recyclers expect higher prices ahead. Activity outside these deals was minimal, with mixed views from European and US recyclers on near-term trends.

Price assessments

India: UK-origin shredded indicatives were assessed unchanged d-o-d at $385/t CFR Nhava Sheva.

Pakistan: UK-origin shredded indicatives were assessed stable d-o-d at $390/t CFR Qasim.

Bangladesh: UK-origin shredded stood at $393/t CFR Chattogram, unchanged compared to yesterday.

Turkiye: US-origin HMS (80:20) bulk was assessed stable further today at $346/t CFR Turkiye.