South Asia: Imported scrap trade subdued as buyers seek lower prices; Bangladesh mills

• Rising electricity costs in Bangladesh pressure mill margins
  
  
• Turkish buyers continue to resist higher prices amid weak demand
  
  

South Asian imported scrap markets remained subdued on 16 June, with weak steel demand and wide bid-offer gaps limiting trade. Meanwhile, Turkiye's deep-sea scrap market continued to face pressure from poor mill margins and cautious buying.

India: The imported scrap market remained subdued, with mills showing limited urgency to book cargoes amid weak steel demand. Market participants noted that softer sentiment continued to weigh on imported scrap demand, while buyers remained focused on maintaining margins.

HMS 80:20 offers were heard at $345-355/t CFR Nhava Sheva against bids of $330-340/t CFR, while shredded scrap offers were reported around $395/t CFR with bids closer to $370-375/t CFR. UK-origin PNS was heard around $375/t CFR, and turnings were considered workable at $305-310/t CFR depending on cargo specifications and payment terms. Buyers also showed limited interest in West African HMS cargoes offered at $345-350/t CFR.

Pakistan: The imported ferrous scrap market remained under pressure, with buyers continuing to target lower prices amid weak finished steel demand and cautious procurement. Shredded scrap bids were heard around $406-407/t CFR Qasim, reflecting expectations of further softening despite relatively firm domestic scrap prices in the UK and Europe.

Reported transactions included 500 t of UK-origin shredded scrap at $417/t CFR Qasim and 500 t of UK-origin PNS scrap at $415/t CFR Qasim for near-arrival cargoes, highlighting the gap between buyer targets and recent deal levels.

Bangladesh: The imported scrap market remained quiet, with most major mills staying on the sidelines amid weak steel demand and a 33% increase in electricity costs in the recent budget. Rising electricity costs could narrow mill margins and are likely to weigh on scrap demand. However, despite subdued construction activity, relatively stable rebar and billet prices prompted buyers to maintain a wait-and-watch approach rather than book fresh cargoes.

Shredded scrap bids were heard around $408-410/t CFR Bangladesh, while offer indications included Singapore-origin PNS at $430/t CFR Chattogram, Malaysia-origin PNS at $430/t CFR, Hong Kong-origin PNS at $445/t CFR, and Brazil-origin HMS 90:10 at $385/t CFR. The persistent bid-offer gap continued to restrict fresh booking activity.

Turkiye: The deep-sea imported scrap market remained under pressure, with Turkish buyers continuing to resist higher prices amid weak finished steel demand and squeezed mill margins. Trading activity remained limited as market participants awaited further US-origin bookings for a clearer price direction. HMS 80:20 tradable values were heard at $398-400/t CFR.