South Asia: Imported scrap sentiment firms amid geopolitical tensions in Middle East

• Rising landed costs, freight risks push Indian buyers to restock
  
  
• Pakistan faces added pressure due to heavy reliance on UAE scrap
  
  

South Asias imported scrap market on 2 March stayed firm as Middle East tensions tightened supply routes and raised freight risks. India, Bangladesh and Pakistan saw improving sentiment and stronger inquiries, while Turkiye remained steady with cautious mill buying.

India: Indian imported containerised shredded scrap prices rose on 2 March due to the US-Iran war effect, with indicative offers heard around $375/t CFR India. Recent deals reflected the shift in upward momentum, including LMS cargoes from Yemen and Somalia concluded at around $315/t CFR Mundra, along with a West Africa-origin LMS sale completed earlier at $300/t CFR Mundra.

Market participants noted tightening availability from the Middle East, with slower movement, cautious seller engagement and logistical disruptions such as transit delays, higher bunker costs and potential rerouting. These factors started to lift landed costs and increased import activity in India as buyers prepared for the possibility of further price escalation.

Bangladesh: Imported scrap prices in Pakistan were heard at $355-360/t for HMS 80:20, with some buyers willing to pay slightly higher levels, while HMS 1 hovered at $365-370/t, shredded at $372-373/t. Prices may face upward pressure in the near term as ongoing Middle East tensions risk disrupting UAE-linked scrap flows, raising freight and bunker costs and potentially lifting landed prices for Pakistani buyers.

Pakistan: Pakistan may face a larger impact if tensions between Iran and the UAE escalate, as the country relies heavily on UAE-origin scrap after European supplies. Any continuation of these disruptions could lead to transit delays, higher bunker costs and possible rerouting, further pushing up landed costs. Imported scrap prices in Pakistan were recently heard at $378-380/t CFR Qasim, reflecting the emerging pressure on the market.

Turkiye: Deep-sea import scrap prices remained stable d-o-d on 2 March, with US-origin HMS 80:20 assessed at $375/t CFR, while EU/Baltic-origin material was workable at $372-375/t CFR. Limited buying interest persisted as finished steel margins remained under pressure, restricting mills' appetite for fresh bookings.