- Bangladesh buyers cautious, favouring nearby sources
- Demand in Turkiye weak amid limited trade activity
BigMint’s US ferrous scrap export index rose by $5/tonne (t) this week, rebounding from 2.5-year lows seen in November 2022. The uptick was largely driven by uncertainty in the US domestic market and early signs of a mild recovery in Turkiye’s deep-sea scrap demand, though the rebound remains limited.
A Baltic supplier commented, “Despite weak sentiment in the US domestic market, Turkish mills still expect US export prices to remain firm. With a few US suppliers holding back amid domestic uncertainty and slightly improved demand, we have seen Baltic-origin scrap prices edge up by $2-3/t this week. We expect clearer direction next week.”
FOB assessments (US East Coast, bulk)
- HMS 80:20 up by $5/t w-o-w to $310/t.
- Shredded up by $5/t w-o-w to $330/t.
CFR assessments (bulk)
- CFR Turkiye: US HMS 80:20 up $5 to $330/t
- CFR Vietnam: US HMS 80:20 down $10 to $340/t
- CFR Chattogram: US HMS 80:20 up $1 to $370/t
Key importers
Turkiye: Demand for US-origin ferrous scrap in Turkiye remained subdued, even as deep-sea offers edged up slightly. Some mills remained active, looking for some lower-end prices, while others stayed on the sidelines amid sluggish finished steel sales and increased semi-finished steel imports, further slowing down scrap demand.
Indicative offers for US and Baltic HMS 80:20 were heard in the $325-330/t CFR range, with sellers aiming for $335-340/t CFR. However, most US suppliers remained hesitant to offer, citing unclear market direction and limited buying interest from Turkish mills.
One confirmed deal involved US-origin HMS 80:20 sold at $330/t CFR to an East Marmara mill. Despite the small pickup in prices, overall demand stayed weak, keeping trade volumes low.
Bangladesh: Demand for US-origin ferrous scrap in Bangladesh remain quite low over the past week even during the sharp fall in bulk scrap tags. A few Chattogram based mills remained selective with bulk purchases amid weak construction activity and limited domestic steel consumption.
Bulk HMS 80:20 from the US West Coast was offered at $370-375/t CFR, with some deals settling around $365-370/t, though overall buying remained thin.
Traders pointed to downward pressure from Turkiye’s weak deep-sea demand and falling global scrap values. With softening local steel prices and market uncertainty persisting, Bangladeshi buyers preferred near-shore options and avoided immediate large-volume bulk bookings.
Vietnam: Vietnam’s demand for US-origin ferrous scrap continueed to show weak sign of recovery, pressured by falling steel prices and limited buying interest from mills. The continued slide in billet and rebar values discouraged restocking.
Traders understood that although the US dollar is softening, the concurrent depreciation of the Vietnamese dong driven by the country’s export-focused economy has narrowed buyer’s capacity to secure higher-priced scrap, particularly from the US and Japan.
Outlook
The US East Coast scrap export price saw modest gains this week, but further upside remains capped unless demand from key importers like Turkiye improves. A similar outlook applies to West Coast prices for Bangladesh and Vietnam. Sellers remain cautiously optimistic, but weak steel fundamentals in buyer markets continue to delay bookings.
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