- Indian mills cautious amid cheaper domestic alternatives
- Turkiye scrap market quiet ahead of holidays
Global ferrous scrap prices showed moderate trends, with most markets stable to slightly weaker amid sluggish demand, currency fluctuations, and cautious buying ahead of Eid. Japan, Pakistan, and China saw minor price drops, while Vietnam and Turkiye held steady. India and Bangladesh remained subdued, and UAE domestic scrap edged up despite weak export interest.
Turkiye: The imported scrap market remained mostly range-bound this week, with US-origin HMS 80:20 steady at $347/t CFR. Trading was limited as buyers and sellers stayed cautious ahead of Eid holidays. Mills showed little urgency to buy, while sellers kept offers firm, supported by tight supply and steady collection costs.
Buyers sought lower prices due to weakening domestic rebar and billet markets, but sellers resisted cuts, especially for US and EU-origin scrap, leading to a stalemate. A few deals, including an EU-origin cargo at $343/t CFR, helped maintain prices. However, ample scrap availability and lack of fresh US-origin offers kept buyer interest and bids subdued.
India: The imported scrap market remained subdued throughout the week, with mills showing limited interest in fresh bookings. The consistent weakness in finished steel demand, coupled with tight margins, made it difficult for buyers to justify higher scrap prices. A growing shift towards cost-effective alternatives such as sponge iron and pellets further reduced demand for imported scrap.
Shredded scraps of UK origin were largely stable, assessed at $366/t CFR, slightly down from the previous week’s $367/t. Offers hovered at $370-375/t, but buyers stayed cautious, bidding lower around, $360-365/t, resulting in limited bookings. Mills continued to prefer short-transit cargoes amid monsoon uncertainty.
Activity was slow across the region, with low material inflows and upcoming summer holiday season in the West, adding to the subdued mood. No immediate demand recovery is expected.
Approximately 5,500-6,500 t of imported scrap were booked in India this week, including 2,500-3,500 t of HMS 80:20 at $335-350/t CFR, 1,500-2,000 t of PNS at $370-372/t CFR, with the remaining volumes comprising Busheling and Turning scrap.
Pakistan: The imported scrap market remained sluggish, with shredded at $382/t CFR Port Qasim, down 1% from last week. High freight costs and weak steel demand kept buyer interest low, while mills maintained low inventories ahead of Eid holidays.
Some mills raised rebar prices by up to PKR 2,000/ to PKR 2,35,000-2,38,000 t due to rising input costs and rupee depreciation, but downstream demand stayed weak and margins tight. Minimal booking activity occurred as mills waited for clearer demand signals post-holiday. Shipping surcharges diverted some cargoes to India, though lower prices there may send shipments back to Pakistan.
Bangladesh: The market for imported scrap stayed under pressure all week due to financial constraints, LC issues, and rising freight costs. Mills remained cautious, focusing on inventory management rather than fresh bookings amid the seasonal slowdown from monsoon and Eid holidays. Deep-sea activity was limited, with only a few containerised trades for PNS and shredded scrap. Current PNS deals were at $381–385/t CFR, with shredded at $370-378/t CFR, HMS 90:10 at $362/t CFR, HMS 80:20 at $352/t CFR Chattogram.
Domestic scrap and rebar prices softened, reflecting weak steel demand and subdued construction. Shredded UK-origin scrap prices held steady at $377/t CFR. High freight rates, especially from Hong Kong, further reduced buying interest and discouraged bulk bookings. The market lacked optimism as mills awaited clearer demand after holidays and the national budget.
Japan: H2 scrap export prices edged down by JPY 100/t due to currency depreciation and weak buying. BigMint’s weekly H2 price was at JPY 41,100/t ($285), down JPY 100/t. Domestic FAS prices fell to JPY 40,500/t ($258). The weaker yen made buyers cautious, slowing seaborne trade.
According to the Japan Iron and Steel Association, average H2 scrap prices in May’s fourth week dropped by JPY 100/t to JPY 38,100/t ($243), with Kansai and Kanto prices falling while those in Chubu remained unchanged.
China: Shagang Steel cut scrap prices by RMB 50/t ($7/t) from 27 May. HMS (6-10 mm) is now at RMB 2,390/t ($332/t), down from RMB 2,440/t ($339/t), including 13% VAT.
Vietnam: The imported scrap market here remained steady with US-origin HMS 80:20 offers at $350/t CFR, though buyer interest was muted due to a bid-offer gap. Japanese H2 was offered at $325-340/t CFR, with trades near $320-323/t. Domestic longs saw a rebar price rise of VND 200/t ($8/t) by Hoa Phat Hung Yen Steel, driven by higher billet costs.
UAE: The processed HMS index rose AED 8/t w-o-w to AED 1,231/t ($335/t) amid moderate trade. HMS 80:20 traded at AED 1,150-1,160/t, and fabrication scrap at AED 1,250-1,260/t. Export demand stayed weak as India and Pakistan buyers remained inactive. Fabrication scrap was offered at $387/t FOB, while billet softened to $460-465/t CFR.
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