The global ferrous scrap market remained subdued this week as Turkish mills were less active due to price-offer disparity resulting in limited bookings. The Vietnamese market was mostly quiet while Japan’s Tokyo Steel reduced scrap purchase prices. Amid LC issues and currency fluctuation in Bangladesh and power outages and political tension in Pakistan, trade volumes in these markets remained limited. The Indian market witnessed limited trades as buyers waited for clearer directions. However, China’s Shagang Steel lifted its scrap buy prices this week.
- Trades subdued in Turkiye’s import market: Turkiye’s imported scrap market was mostly silent as buyers and steelmakers remained on the sidelines. Negotiations were almost absent, although some buyers showed interest in prompt shipment cargoes. Suppliers, however, believe that buyers’ price expectations are too low and impossible to match. A few deals were heard and concluded towards the weekend at $328-$337/t for HMS (80:20) and at $338-352/t for US-origin shredded.
SteelMint’s assessment for US-origin HMS 1&2 (80:20) stands at $338/t CFR, down $9/t w-o-w. - Vietnam market silent: The imported scrap market in Vietnam was silent for the sixth consecutive week. The continued downtrend in finished steel demand slowed down scrap market activities. Despite low offers, buyers and steelmakers are still not showing interest in booking any major slot.
Offers for imported Japanese bulk H2 scrap are at $370/t CFR, unchanged w-o-w, whereas indicative prices are $375/t CFR. Prices have fallen to a three-month low, as per data maintained with SteelMint.
- Japanese export scrap market sluggish: The Japanese scrap market remained less active than usual as overseas buyers hesitated to book fresh offers. Despite the continuous decline in scrap export offers after the Kanto tender last week, steelmakers were away from the market due to bearish finished steel sentiments.
SteelMint’s assessment for Japanese H2 scrap export prices is at JPY 43,500/t ($311/t) FOB, decreasing significantly by JPY 2,000/t ($14/t) w-o-w. Prices have hit the lowest level in three months.
- Tokyo Steel cuts scrap buy prices: Japan’s major EAF steelmaker, Tokyo Steel, has lowered scrap purchase bids twice this week. After the final revision, prices of H2 scrap stand at JPY 47,000/t ($335/t) for delivery to the Tahara plant and JPY 47,500/t ($338t) for the Utsunomiya works.
- Shagang lifts scrap purchase prices: Jiangsu Shagang Group raised scrap buying prices this week by RMB 100/t ($14/t) for all grades for HMS (6-10 mm). Prices currently stand at RMB 2,910/t ($413/t) delivered to headquarters, including 13% VAT. The company continues to lift its scrap buy prices to prevent ever-declining deliveries.
- Bangladesh’s import market sees surge in activity: Despite limited demand from the downstream sector, Bangladeshi mills increased rebar prices for yet another week. Increased input costs, power outages, and production curtailment led to a hike in finished steel product prices. The domestic market is struggling with power shortage and fuel crisis and many mini-mills have been forced to stop production.
Deals were heard for around 2,000 t booked by Bangladeshi mills this week at $443-448/t.Indications for containerised UK-origin offers are at $448/t CFR, down $6/t w-o-w.Bulk buyers are mostly silent, as indicative offers for US-origin bulk HMS (80:20) were heard at $385/t CFR, down $5/t w-o-w. Suppliers are aggressive in selling material at the earliest possible opportunity owing to uncertain market conditions.
- Pakistan market turns active: A downtrend in global scrap market sentiments resulted in a decline in Pakistan’s imported scrap prices. In November scrap buyers turned active as around 16,000 t of shredded was booked from Europe.
Offers for UK/Europe-origin shredded scrap in containers are at $413/t CFR, a decrease of $10/t w-o-w.
- India market still sluggish: Imported scrap prices in India fell continuously for yet another week due to the drop in demand and sales. Buyers adopted a wait-and-watch approach anticipating further price weakening. Bookings are extremely slow and limited deals were concluded this week at $418/t for Europe-origin shredded.
Meanwhile, the domestic market has weakened considerably, which is likely to keep imported scrap bookings slow.
However, in a significant development, “the government rolled back export duties on steel and steelmaking raw materials on 18 November and the market may see some improvement soon,” a source informed.
SteelMint’s assessment of Europe-origin shredded scrap offers into India were at $415/t CFR Nhava Sheva, down $8-10/t w-o-w>
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