South Asia’s imported ferrous scrap market has recently faced notable challenges, economic constraints, volatile global market dynamics, and weak post-holiday demand. Key players in the region, including India, Pakistan, Bangladesh, and Turkiye, have displayed sluggish activity amid cautious sentiment and market uncertainties.
India’s Scrap Market Trends
India witnessed a significant slowdown in the interest in imported scrap. Falling domestic steel demand has been an important factor, with concerns over cheap Chinese steel imports and a depreciating rupee. These dynamics discouraged mills from making new bookings.
Price Updates: Containerised shredded scrap from the UK remained steady at around $385/t CFR Nhava Sheva. However, buyers showed hesitation and targeted lower prices. Australian HMS (80:20) saw limited booking at $362-363/t CFR, while UK-origin sheared HMS traded between $350-355/t CFR.
Market Sentiment: Weak domestic rebar prices and increased usage of sponge iron further dented demand. Many mills adopted a “wait-and-see” approach, focusing on clearer market signals before purchasing.
Pakistan’s Scrap Market Trends
Pakistan’s ferrous scrap market faced challenges, particularly in the aftermath of Eid celebrations. Post-holiday sales remained weak, and mills operated at 30-40% of their capacity due to sluggish rebar sales.
Price Updates: UK-origin shredded scrap was assessed at $382/t CFR Qasim, with bids hovering lower at $375-378/t. Falling Turkish scrap prices further impacted market confidence.
Economic Impact: Domestic rebar prices varied between PKR 232,000-250,000/t depending on the region and payment terms. Mills avoided fresh bookings and preferred to wait for demand recovery or supportive policies.
Bangladesh’s Scrap Market Trends
Bangladesh’s import scrap market activity remained muted due to ongoing letter of credit (LC) issues and tight forex reserves. Buyers opted for caution despite stable domestic rebar prices.
Price Updates: UK-origin shredded prices dropped marginally by $1/t d-o-d to $389/t CFR Chattogram. Japanese bulk offers hovered around $360-365/t CFR but received limited interest. Suppliers remained reluctant to lower prices further.
Buyer Preferences: Domestic scrap gained more attention from mills, supported by stable rebar prices in the BDT 82,000-86,000/t range.
Turkiye’s Scrap Market Trends
Turkiye’s imported scrap market reflected heightened uncertainty, with prices showing notable variability on a deal-to-deal basis.
Price Updates: US-origin HMS (80:20) bulk scrap prices dropped $6/t d-o-d to $352/t CFR. European-origin deep-sea scrap deals also saw declines of $10-15/t, signaling bearish sentiment among buyers.
Market Challenges: Sluggish buying appetite and global volatility have created hesitancy in the market, contributing to further price drops.
Conclusion
Across South Asia the imported ferrous scrap market remains under pressure due to weak regional demand, global market shifts, and economic hurdles. While India, Pakistan, and Bangladesh continue to hold back on new scrap purchases, Turkiye’s scrap prices are experiencing sharp declines. The cautious sentiment is expected to persist soon, with buyers opting to monitor global developments closely before making any decisive moves.
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