- Turkish mills delay bookings, but offers hold firm
- India faces supply glut with 2 bulk vessel arrivals
Global ferrous scrap prices showed moderate to slight declines this week amid soft steel demand and holiday-related slowdowns across key markets. Import prices fell 2% in Turkiye and Pakistan, while India and Bangladesh remained mostly stable. Market activity was subdued, with cautious buying and oversupply weighing on sentiment.
Turkiye: Imported scrap prices in Turkiye fell 2% w-o-w, with HMS 80:20 assessed at $341/t CFR, against $347/t. Market activity was subdued, as mills stayed away from fresh bookings amid the extended Eid al-Adha holidays and weak finished steel sales.
Despite bearish sentiment, suppliers held firm on offers due to rising collection costs and the strengthening euro. US and Baltic-origin HMS 80:20 was heard around $340-344/t CFR, while EU-origin offers ranged between $334-338/t CFR. Mills adopted a cautious stance, delaying purchases until post-holiday clarity emerges.
The domestic market also remained quiet during the break. Some participants anticipate a rebound in activity in the coming week, though weak rebar demand and global uncertainties may cap any immediate upside.
India: Imported scrap prices remained largely stable last week, with shredded assessed at $366/t CFR, unchanged w-o-w. Trade activity was subdued despite a wide range of offers – shredded between $365-375/t CFR and HMS 80:20 between $340-355/t CFR. Some deals were concluded at $360-365/t for shredded and $340-345/t for HMS, but most buyers resisted higher levels. A slight rise in freights towards the end of the month provided marginal support to supplier offers, though overall demand remained weak.
Around two bulk vessels arrived this week – one at Kandla carrying approximately 32,000 t of mixed US-origin scrap and another at Chennai with about 27,000 t of Korean-origin material. The market was already oversupplied, and these fresh arrivals have added further pressure to an already weak sentiment.
Last week, around 6,000 t of imported scrap were booked, including HMS, HMS 80:20, and PNS from Brazil, Caribbean, West Africa, and Bahrain.
Pakistan: Imported scrap remained largely stable in Pakistan over the past week, though overall sentiment stayed sluggish amid the extended Eid al-Adha holidays and weak finished steel demand. Shredded prices stood at $375/t CFR Port Qasim, down by 2% w-o-w from $382/t, as limited trading activity and inactive mills weighed on market momentum.
Despite a few low-priced offers at around $372-373/t CFR and panic sales from UK/EU at $375-378/t CFR, most buyers stayed on the sidelines, delaying purchases until post-holiday clarity. UAE-origin flows were also thin, with only sporadic small-lot deals reported.
Looking ahead, market participants expect a gradual improvement in trade activity after mid-June as mills resume operations and reassess raw material requirements.
Bangladesh: Imported scrap remained largely stable in Bangladesh last week, with shredded assessed at $376/t CFR Chattogram, nearly unchanged w-o-w from $377/t. Market activity was muted, as mills remained on the sidelines due to extended Eid holidays, letter of credit (LC) constraints, and sluggish construction demand.
A bulk deal from the US was reportedly booked at $373/t CFR, though unconfirmed, while containerised shredded offers were heard in the $376-380/t range. Overall, limited demand, combined with sufficient inventories and adverse weather conditions, kept buying interest low.
With the market in a one-week pause for Eid, trading is expected to gradually resume post-holidays. However, any immediate pick-up may be tempered by political and economic uncertainties.
Japan: H2 scrap export prices moved slightly lower amid persistently weak demand in overseas and domestic markets. BigMint assessed H2 at JPY 40,600/t ($282/t) FOB Tokyo Bay, down JPY 500/t ($3/t) w-o-w, as sluggish rebar demand led Tokyo Steel to cut purchase prices twice in early June, reducing them by up to JPY 1,000/t ($6/t) at key plants.
Additionally, Japan’s steel scrap exports rose sharply in April, up 57% y-o-y to 716,324 t, surpassing 700,000 t for the first time in four months. The increase was driven by stronger buying from emerging Asian markets, including Bangladesh and India.
Vietnam: The imported scrap market stayed mostly stable w-o-w, with limited buying as mills favoured cheaper Indonesian billets (around 80,000 t booked at $430/t FOB). Japanese H2 prices rose slightly to $322/t CFR, with offers at $325-330/t and bids near $318/t amid yen volatility. Sentiment was mildly bearish, as some Southeast Asian scrap was diverted to India due to stronger demand.
US: Export prices fell $7/t w-o-w. Pig iron prices were steady, as buyers awaited tariff clarity. June scrap bookings were tentative, with many holding back amid market uncertainty due to mixed demand cues and the tariff impact. Inventory levels varied regionally, with some mills well-stocked and others tightening. Prices are expected to ease in June.
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