The global ferrous scrap market remained gloomy this week. Negotiations were slow by Turkish buyers amid adverse market conditions. But Vietnamese imported scrap trade remained stable despite decrease in rebar consumption by buyers. On the other hand, Japanese scrap suppliers kept prices high despite weak demand. China’s Shagang Steel, though, slashed scrap buy prices on falling steel demand.
South Asian imported scrap market also remained subdued as negative domestic market sentiments kept Bangladeshi buyers away. Limited deals were heard in Pakistan, while imports remained mostly quiet in India amid the Diwali holidays.
- Turkiye’s imported scrap market muted: Turkiye’s imported scrap market remained quiet as buyers were hesitant to retain new cargo due to adverse market conditions. Due to limited sales, the finished steel market remained under pressure, and negotiations for scrap moved at a slow pace. The supply of material was low ahead of the approaching winter season and drop in steel output.
SteelMint’s assessment for US-origin HMS 1&2 (80:20) stands at $360/t CFR, down $5/t w-o-w.
- Vietnamese imported scrap trades stable: Due to the decrease in rebar consumption by both domestic and foreign buyers, Vietnam’s imported scrap market remained stable. At levels of $365/t CFR, indicative offers for the bulk US-origin material were heard.
Indicative offers for Japanese H2 were heard at $380/t CFR levels, down $5/t w-o-w.
- Japanese scrap export prices hit one-month high: Despite weak demand for finished steel from the domestic and international markets, Japanese scrap suppliers kept scrap prices high.
Imported scrap-buying countries like South Korea and Vietnam appeared to be stagnant in the meantime. However, Japanese scrap prices kept rising incrementally as the domestic mills are ready to pay higher prices for scrap as rebar price realisations too have soared.SteelMint’s assessment of Japanese H2 scrap export prices stand at JPY 50,000-50,500/t ($339-342/t) FOB, up JPY 500/t w-o-w.
- Shagang slashes purchase prices by $14/t: The Jiangsu Shagang Group reduced scrap buy prices for the first time this week due to the downtrend in finished steel prices and demand in China. The company trimmed scrap purchase prices by a total of RMB 100/t ($14 /t) for HMS (6-10 mm) that stands at RMB 2,710/t ($379/t) delivered to headquarters, including 13% VAT.
- Imported scrap prices drop in Pakistan: Due to the gloomy steel market outlook Pakistan’s imported scrap buyers remained quiet. Shredded scrap imports from the UK in containers are now assessed at $440/t CFR, down $10/t from last Friday.
Due to lower acceptability of available offers, buyers and steelmakers anticipate further price correction, which is why only about 1,000 t of deals were reported.
SteelMint’s assessment for shredded scrap in Pakistan is $438/t CFR Qasim, down $12/t w-o-w.
- Imported scrap trades subdued in Bangladesh: Despite offers continuing their downward trend, the imported scrap market in Bangladesh remained quiet for the fifth consecutive week. The country’s liquidity crisis, lower operational capacities, and negative domestic market sentiments are making it difficult for mills to maintain cash flow.
However, in a recent deal, it was reported that a major mill had booked a bulk 32,000 t HMS 1&2 (80:20) cargo from the US at $410/t CFR.
SteelMint’s assessment of shredded scrap from the UK is currently $463/t CFR, down 17/t w-o-w.
- India’s imported scrap market silent: The Imported scrap market was mostly quiet in India due to the Diwali holidays which impacted trade flow. The market saw limited buying appetite. However, containerised bookings were heard this week from Europe.
Around 500 t of shredded scrap was booked from Europe at $443/t CFR Nhava Sheva.
SteelMint’s assessment for shredded scrap of European origin stands at $440/t CFR Nhava Sheva, down $12/t w-o-w.
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