The global ferrous scrap market followed mostly trended lower as Turkiye’s imported scrap market remained slow post fresh deals. Japanese suppliers attracted limited bids on falling demand. Floods and hike in power tariffs coupled with lack of finished steel sales hit Pakistan’s steel mills. Due to bid-offer mismatch, imported scrap trade in Bangladesh is still muted. India’s imported scrap prices declined even as bulk bookings were heard.
- Turkiye’s imported scrap bookings resume: After a temporary break, Turkish steel manufacturers have scheduled bulk scrap shipments this week. However, the market movement remained under pressure due to weak finished demand. Around four deals were concluded earlier in the week.
Turkish Energy Market Regulatory Authority raised electricity prices for industrial use on 1 September which has increased the production cost and declined the margin from steel sales.
SteelMint’s assessment for US-origin HMS 1&2 (80:20) stands at $345-350/t CFR, down by around $25-30/t w-o-w.
- Vietnam’s imported scrap trade modest: Due to weak end-user demand, Vietnam’s imported scrap trade remained modest. Market activity was missing throughout the week as a result of trade slowdown despite drop in imported scrap offers for Japanese material and hence market activities remained absent throughout the week.
Indicative offers for Japanese bulk H2 scrap were heard at $410/t CFR Vietnam, $15-20 down w-o-w.
- Japan ferrous scrap export prices move down: Due to limited end-user demand, Japan’s scrap export trade stalled this week. Major scrap importers like South Korea and Vietnam are having trouble keeping up with the slow regional and global demand.
SteelMint’s assessment for Japanese H2 scrap export prices stands at JPY 48,500/t ($339/t) FOB, down by JPY 1,000 ($7/t) w-o-w.
- Bangladesh’s imported scrap trade remains subdued: Due to delays in infrastructure projects brought on by excessive rainfall, LCs restrictions, and the resulting low demand for construction steel, containerized scrap purchasers continued to be silent.
However, post-Kanto tender no major bulk bookings were heard as firm indications were not received for Japanese material.
SteelMint assessment of UK-origin shredded stands at $470-475/t CFR, moving down significantly by $25/t w-o-w.
- Pakistan’s imported scrap bookings slow amid floods: Concerned about flooding and rising electricity prices, scrap bookings among the Pakistani steel mills are still minimal. Market activities in Karachi and Lahore were badly hampered by heavy rain due to which all forms of transportation (by road and rail) were prohibited. In order to secure material for November delivery at a discount, buyers are waiting for more price corrections.
SteelMint’s assessment for shredded scrap in Pakistan stands at $440-445/t CFR Qasim, down by $25-30/t w-o-w.
- Indian container market dull, bulk deal heard: Post the Turkish deal, Indian buyers and steelmakers have turned cautious and booked a limited quantity of containerised scrap due to limited finished steel sales and demand in the regional market. Whereas, a 50,000 t bulk deal of Europe/UK origin traded at $400/t CFR was heard.
Market participants said that due to Vishwakarma Puja, only small parcel deals are likely to happen as plants will remain closed. SteelMint’s assessment for shredded scrap in India stands at $450/t CFR Nhava Sheva, down $18/t w-o-w.
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