South Asia: Imported scrap markets remain weak; Turkiye market stays firm

• India scrap imports weakened amid poor downstream demand
  
  
• Pakistan buyers stayed cautious despite fresh scrap bookings
  
  

South Asia imported scrap markets remained weak on 13 May across India, Pakistan, and Bangladesh amid sluggish steel demand, unfavorable currency conditions, and cautious buying activity, while Trkiyes deep-sea scrap market remained firm on fresh US-origin bookings despite weak downstream fundamentals.

India: India's imported containerised scrap market remained weak d-o-d, with HMS 80:20 (Europe-origin) heard at $375/t, US-origin shredded scrap at $378/t, UK-origin shredded scrap at $415/t, and Africa-origin bundles at $335/t. Market sentiment remained largely stable; however, an extremely unfavorable exchange rate and sluggish domestic downstream demand continued to limit buying interest for shredded scrap imports. Participants also expect prices may soften further if monsoon-related disruptions impact steel demand and logistics.

Pakistan: Imported scrap market remained slow d-o-d, with UK- and EU-origin shredded scrap offers largely heard at $423-430/t CFR Qasim. Meanwhile, Europe-origin shredded scrap was booked at $418/t CFR Qasim for around 1,000 t, while Malaysia-origin busheling was also concluded at $430-435/t CFR Qasim for 1,000-1,500 t.

Following the Malaysia-origin busheling deals, buyers increasingly approached Malaysian suppliers seeking lower-priced material due to limited availability from other origins. However, the strong buying interest prompted suppliers to raise offer prices in subsequent sales, making fresh bookings more difficult for importers.

Bangladesh: The imported scrap market remained slow d-o-d due to weak steel demand, with UK/EU-origin HMS 80:20 offers heard at $385-390/t CFR, while UK-origin shredded scrap offers were reported at $415-416/t CFR.

Turkiye: Deep-sea imported scrap market remained firm d-o-d, with a US-origin cargo sold to a Turkish mill for June shipment, comprising 16,000 t HMS 90:10 at $418/t CFR, 11,000 t shredded scrap at $433/t CFR, and 2,000 t bonus grade at $433/t CFR.

Market participants indicated that the breakeven level for the scrap-rebar spread currently stands around $180-200/t, depending on mill size. Indicative offers from Eurozone recyclers were heard at $405-410/t CFR, while traders noted that Turkish mills may struggle to absorb higher scrap prices amid weak downstream steel demand and limited support from the rebar market.