South Asia: Imported scrap demand remains subdued; Turkiye prices weaken further

• India: Wide bid-offer gap limits fresh bookings
  
  
• Pakistan: Selective buying persists amid softer sentiment
  
  

South Asia scrap market, 22 June: Imported ferrous scrap sentiment remained weak across India, Pakistan, and Bangladesh as buyers stayed cautious amid poor steel demand and margin pressure. Meanwhile, Turkish deep-sea scrap prices softened further, with market participants expecting additional downside in the near term.

India: The imported ferrous scrap market remained subdued, with buyers largely absent amid weak steel demand and poor import viability.A wide bid-offer gap persisted, limiting fresh bookings. Buyers were heard at $335-340/t CFR for HMS 80:20 against offer indications of $350-365/t CFR. Additional offers included CAD-origin HMS 80:20 at $340/t CFR, LMS scrap at $310/t CFR, and Costa Rica-origin HMS 60:40 at $320/t CFR Chennai. However, no transactions were reported at these levels, while buying interest from Mundra remained negligible.

Pakistan: Imported shredded scrap sentiment softened further, with buyers continuing to target lower workable levels amid cautious steel procurement. UK/EU-origin shredded scrap offers were heard at $410-415/t CFR, while PNS offers stood at $420/t CFR Pakistan. Despite the weaker sentiment, deals were reported for pig iron skulls at $258/t CFR Port Qasim and steel skulls at $333/t CFR Port Qasim, reflecting selective buying activity in the market.

Bangladesh: Bangladesh imported scrap market remained quiet, with buyers maintaining a cautious stance amid weak steel demand and limited purchasing interest. Most mills continued a wait-and-watch approach, resulting in minimal booking activity. Offer indications were heard at $407-410/t CFR for UK-origin shredded scrap, $365-370/t CFR for UK-origin HMS, and $375-378/t CFR for HMS cargoes, while buyers largely stayed on the sidelines.

Turkiye: Deep-sea imported scrap sentiment weakened further on 19 June, as poor finished steel demand and negative mill margins continued to pressure buying activity. Market participants noted that mills have increasingly resisted higher scrap prices after months of elevated raw material costs, while higher billet imports have also reduced the urgency for scrap purchases.

A recent Europe-origin HMS 80:20 deal to Turkiye was reported at $380/t CFR, contributing to decline in benchmark prices to $388/t CFR. Market participants expect further downside towards $370-375/t CFR, as Turkish mills continue pushing for lower scrap prices to restore more sustainable rebar-scrap spreads amid weak downstream demand.