- Turkish mills shift focus to cheaper Chinese billets
- Bearish flat steel outlook weights on US domestic scrap
BigMint’s US ferrous scrap export index declined by $18/tonne (t) this week, weighed down by rising competition from cheaper steel alternatives. Export demand slowed as cheaper Chinese billets flowed into the global market, particularly impacting key US scrap buying destinations like Turkiye and others.
FOB assessments (US East Coast, bulk)
- HMS 80:20 decreased by $18/t w-o-w to $327/t.
- Shredded dropped by $18/t w-o-w to $347/t.
US bearish flat steel outlook weights on domestic scrap
US domestic scrap prices saw a sharp correction from March levels, with prime grades down by around $20/t, cut grades falling $30/t, and shredded scrap slipping as much as $40/t, depending on the region. In the Southeast, obsolete scrap dropped $5-8/t w-o-w, mirroring the broader monthly declines.
Shredded scrap was assessed at $415-420/t delivered Midwest and $412-415/t Southeast. PNS was reported at $400-405/t Midwest and $396-400/t Southeast, while HMS dropped to $366-370/t in the Midwest and $362-365/t in the Southeast. A bearish trend in flat-rolled steel continues to weigh on scrap pricing sentiment.
CFR assessments (bulk)
- HMS 80:20 was at $348/t CFR Turkiye, down by $18/t w-o-w.
- HMS 80:20 stood at $360/t CFR Vietnam, down by $2/t w-o-w.
- HMS 80:20 was at $374/t CFR Chattogram, down by $6/t w-o-w.
Updates on key importers
Turkiye: Demand for US-origin HMS 80:20 in Turkiye softened as buyers pressed for lower prices after a discounted UK-origin deal. Mills turned aggressive with bids, pushing deep-sea scrap prices down to $345-350/t CFR-the lowest since late January-before slightly rebounding to $347/t.
Sellers struggled to adjust to the sharp correction, with EU and Baltic exporters facing difficulties due to the strong euro and elevated collection costs. A European trader noted that the US showed little pricing flexibility, further limiting the trade flow into Turkiye.
Turkish mini-mills lowered their scrap purchase targets amid continued weakness in rebar export prices. To safeguard margins, many turned to booking substantial volumes of Chinese steel billets for June shipment, with prices at around $460/t CFR or below.
Bangladesh: The market saw little appetite for high-grade cargoes, with previous US offers hovering at $370/t CFR Chattogram drawing limited interest. Demand for US-origin HMS 80:20 bulk scrap in Bangladesh stayed muted, despite a modest recovery in finished steel demand after the holidays.
Volatility in Turkish scrap prices and continued market caution kept US bulk offers largely absent.
A Chattogram-based mill source noted, “We are focusing on bulk purchases from near-shore regions, mostly shredded, with recent offers at around $380/t CFR from Australia.”
Vietnam: Demand for US-origin HMS 80:20 in Vietnam remained subdued as buyers stayed on the sidelines amid ongoing currency depreciation and weak domestic steel demand. Traders noted that the mid-week dip in the Vietnamese dong further dampened interest in dollar-denominated cargoes. With sluggish sales and tight margins, mills remained cautious and avoided restocking.
Outlook
US-origin obsolete scrap prices are likely to remain under pressure in the near term, driven by weak overseas demand, and currency volatility. Key import markets such as Turkiye, Bangladesh, and Vietnam are expected to stay cautious, with mills focusing on cost control amid persistent uncertainty in finished steel demand.
Leave a Reply