South Asia: Imported scrap offers edge up in Pakistan, Bangladesh despite limited buying interest

• India sees subdued demand, stable prices
  
  
• Turkish tags hold firm amid limited activity
  
  

The South Asian imported scrap market saw limited activity today, with a mix of stable and sluggish trends across the region. D-o-d, UK-origin shredded offers edged up by $2/tonne (t) in Pakistan and $1/t in Bangladesh while remaining unchanged in India.

In India, demand remained subdued due to a significant gap between bids and offers, while in Pakistan, a slight price increase failed to spark substantial buying interest, as mills remained cautious amid weak construction demand. Additionally, Bangladesh's market continued to struggle with ongoing letter of credit (LC) issues, rising freight costs, and low buyer sentiment.

Meanwhile, Turkiye's imported scrap market remained stable, with prices holding steady despite limited buying appetite. US-origin bulk HMS 80:20 offers to Turkiye also remained stable compared to the last close on Friday.

Market overview

India: In India, imported scrap demand stayed subdued today due to a wide gap between bids and offers. While inquiries picked up, they remained below workable levels, keeping negotiations ongoing. Shredded from the UK/Europe was offered at $370-375/t CFR Nhava Sheva, but buyer interest hovered at around $360-365/t CFR. HMS 80:20 from the same regions was quoted at $350-355/t CFR, while West African material ranged within $350-360/t CFR, depending on loading.

Chilean HMS 90:10 in 20-ft containers was heard at $355-360/t CFR.

A trader stated, "Inquiries exist, but buyer expectations are too low for us to offer anything right now."

Another noted, "The market is stable, the rupee has weakened, and sentiment is positive - but any real impact might take 2-3 days to surface."

Pakistan: Pakistan's imported scrap prices experienced a modest uptick today, with shredded offers rising to $378-384/t CFR Qasim, mainly driven by higher freight costs. However, buying activity remained quiet, as mills remained cautious, grappling with weak construction demand, subdued finished steel sales, and narrow rebar margins.

With adequate inventory levels, most mills resisted the higher offers, placing only limited orders.

A buyer said, "Prices have risen, and sentiment is improving. This week is critical as things are starting to normalise."

Bangladesh: Bangladesh's imported scrap market remained dull, as mills continued to delay purchases amid ongoing LC issues, rising freights, and subdued construction activity. Liquidity challenges and seasonal demand weakness further weighed on buyer sentiment.

Australian shredded was offered at $375-380/t CFR Chattogram, while PNS scrap was quoted around $385/t CFR. However, limited buying interest and a noticeable bid-offer gap of $5-7/t kept trade activity minimal.

Turkiye: The Turkish imported scrap market remained stable today, with bulk offers showing no significant changes. Offers for US-origin bulk HMS 80:20 cargoes from the US and Baltic regions were heard at around $338-340/t CFR.

Mills showed limited buying appetite following recent restocking activity, leading to a quiet trading day. While prices held firm, demand remained muted, and no new bookings were reported. Market sentiment was cautious, with participants expecting prices to stay steady in the short term.

Price assessments

India: UK-origin shredded indicatives were assessed at $370/t CFR Nhava Sheva, unchanged compared to the last close on Friday.

Pakistan: UK-origin shredded indicatives stood at $378/t CFR Qasim, up by $2/t compared to the last close on Friday.

Bangladesh: UK-origin shredded prices were assessed at $377/t CFR Chattogram, up by $1/t compared to the last close on Friday.

Turkiye: US-origin HMS (80:20) bulk scrap prices were assessed at $340/t CFR Turkiye, unchanged compared to the last close on Friday.