South Asian imported scrap buyers tread cautiously amid dull steel sentiments, inventory pressures
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- Some Indian buyers prefer premium grade scrap
- Inventories, discounts weigh on Bangladesh market
South Asia's imported scrap market presented a blend of stability and caution today, with varying trends across India, Pakistan, Bangladesh, and Turkiye. India's market saw selective demand for premium grades, mainly from alloy and special steel manufacturers, while sluggish domestic steel sales kept most buyers restrained. Pakistan's market held steady, as both see a lack of new projects and smog-related slowdowns weighing on sentiment. Bangladesh's scrap market faced minimal movement due to excess inventory and further rebar discounts, while Turkiye maintained stable scrap prices amid mixed expectations and cautious mill activity.
Overview
India: India's imported scrap market showed mixed trends today, with alloy and special steel manufacturers showing interest in premium-grade scrap, while other buyers stayed cautious amid slow domestic steel sales. Indicative offers for shredded scrap from the US and UK/Europe were at around $395-400/t CFR Nhava Sheva, while HMS (80:20) from the UK/Europe and West Africa was offered at $370-380/t CFR.
Australian offers for shredded were at $385-390/t CFR Chennai and $360-365/t CFR for HMS (80:20). West coast offers were at $395/t for shredded and $370-375/t for HMS (80:20).
Pakistan: Pakistan's imported scrap market stayed stable today as buyers remained cautious amidst a slowdown in domestic steel sales. The lack of new government projects and widespread smog across major regions have slowed market activities. Indicative offers for shredded scrap from the UK/Europe were at $395-400/t CFR Qasim.
Bangladesh: Bangladesh's imported scrap market saw minimal activity today as weak demand and heavy inventory levels continued to weigh on the industry. Key steel mills announced further discounts on rebar prices, now totalling to a cumulative reduction of BDT 5,000-6,000/t, making buyers cautious as many anticipate a potential further price drop.
Rebar prices are currently at BDT 84,000-85,000/t ex-Chattogram and BDT 80,000-81,000/t ex-Dhaka, with local scrap trades at BDT 51,000-53,000/t, depending on quality.
Imported scrap prices held steady with shredded scrap offers from Australia and Malaysia firm at $395-400/t CFR, but mills are showing limited buying interest under current market conditions.
Turkiye: The Turkish imported scrap market showed stability today, with prices holding steady. Buyers and sellers were divided on the price outlook, as the market lacked a clear direction on whether there would be a rebound or decline. A weaker Euro contributed to potential discounts on EU-origin scrap, with reports of an unconfirmed Benelux-origin deal at $356/t CFR Turkiye, suggesting slight softening.
Tradeable EU-origin scrap values hovered at $355-358/t CFR, but sellers encountered resistance as prices approached $360/t. For the Baltic and US suppliers, prices remained firm without discounts, as market players watched for potential impacts from the US election results. US-origin bulk HMS (80:20) traded at around $362-363/t CFR, indicating a stable mood in the market, though some sources noted potential for a modest $10/t rise. Turkish mills, however, appeared cautious, showing no urgency to pay higher prices in the upcoming deals.
Price assessments
India: UK-origin shredded scrap indicatives edged up by $1/t to $397/t CFR Nhava Sheva d-o-d.
Pakistan: UK-origin shredded indicatives remained unchanged d-o-d at $397/t CFR Qasim.
Bangladesh: UK-origin shredded prices were at $400/t CFR Chattogram, down by $2/t d-o-d.
Turkiye: US-origin HMS (80:20) bulk prices remained unchanged d-o-d at $363/t CFR Turkiye.
