South Asia: Imported scrap market sees cautious activity amid subdued domestic steel segments

• Indian buyers remain cautious amid bid-offer disparities
  
  
• Pak, B'desh stay quiet amid muted construction activity
  
  

The South Asian imported scrap market faced a cautious trading environment this week, marked by sluggish steel demand and limited transactions across India, Pakistan, and Bangladesh. While sentiment in neighbouring regions such as Turkiye showed marginal improvement throughout the week, South Asian buyers remained hesitant due to weak domestic steel demand, seasonal slowdowns, and persistent bid-offer mismatches.

In India, unworkable offers and uncertain steel trends stalled bookings, while Pakistan's mills held back purchases ahead of the Eid-related production lull. Bangladesh grappled with monsoon disruptions and inventory management, keeping trade activity muted.

D-o-d, UK-origin shredded offers edged down by $3/t in India while remaining unchanged in Pakistan and Bangladesh. US-origin bulk HMS 80:20 offers to Turkiye also fell by $2/t d-o-d today.

Market overview

India: India's imported scrap market remained sluggish despite a slight improvement in regional sentiment. Buyer caution prevailed due to weak domestic steel demand, unworkable offers, and a wide bid-offer gap. Although inquiries picked up, most participants delayed bookings amid market uncertainty and a lack of clear direction. Sellers held firm, but buyers resisted, leading to limited trade activity.

Shredded was offered at $365-375/t CFR Nhava Sheva, with bids at around $360-365/t. HMS 80:20 was quoted at $350-355/t CFR, while buyers countered at $345-350/t. Additional offers included West African HMS 80:20 at around $350-355/t CFR and Kuwait HMS 1 at $360/t CFR.

Pakistan: Pakistan's imported scrap market remained quiet, with buyers showing limited interest amid weak construction demand, slow steel sales, and tight rebar margins. Mills remained cautious, holding back on purchases due to sufficient inventories and an expected seasonal slowdown during Eid in early June. Despite slightly improving sentiment in Turkiye, local production stayed low, and overall market mood was subdued.

Shredded offers were heard at $375-380/t CFR Port Qasim, though most buyers capped bids at around $375/t. UK- and European-origin offers were steady but often deemed unworkable. Dubai-origin shredded continued to arrive regularly due to short transit times, helping to maintain some supply flow despite sluggish demand.

Bangladesh: Bangladesh's imported scrap market remained sluggish, with weak demand driven by the monsoon slowdown and muted construction activity. Buyer sentiment stayed cautious despite no major issues with letter of credit (LC) openings, as mills focused on managing inventories amid subdued domestic steel demand. Trade activity was limited, with a noticeable bid-offer gap keeping most buyers on the sidelines.

Offers for containerised shredded from Australia were heard at $375-380/t CFR Chattogram, while HMS 1 was offered at $360-365/t and HMS 80:20 was heard at $350-355/t CFR.

Turkiye: Following a modest improvement throughout the week, the Turkish imported scrap market saw slight downward pressure today, as mills pushed back against sellers' higher offer attempts. Despite healthy buying interest for June-July shipments, deals were struck below offers, indicating buyer resistance amid a wide bid-offer spread.

Offers for US-origin HMS 80:20 were assessed at $342/t CFR, down $2/t. Recent bookings from US, EU, and Baltic origins mostly hovered at around $340-345/t CFR, with sellers aiming higher but struggling to find takers.

Mills reportedly remained cautious on paying beyond $345/t. While the near-term sentiment stayed positive, the strong dollar and European currency fluctuations created mixed outlooks for future pricing.

Price assessments

India: UK-origin shredded indicatives were assessed at $370/t CFR Nhava Sheva, down by $3/t d-o-d.

Pakistan: UK-origin shredded indicatives stood at $376/t CFR Qasim, unchanged d-o-d.

Bangladesh: UK-origin shredded prices were assessed at $378/t CFR Chattogram, unchanged d-o-d.

Turkiye: US-origin HMS (80:20) bulk scrap prices were assessed at $342/t CFR Turkiye, down by $2/t d-o-d.