- Soft VND, US trade tensions cap demand from Vietnam
- Bangladesh delays purchases amid rains, weak demand
US ferrous scrap export prices rose by $6/tonne (t) this week. Despite continued buyer resistance, the conclusion of some deals, primarily with Turkish traders, kept the market alive. However, across other major markets, including Vietnam and Bangladesh, weak finished steel sales kept mills cautious.
The outlook for finished steel prices in the US is mixed, but many scrap sellers believe higher prices for some steel grades will help support scrap markets for now.
FOB assessments (US East Coast, bulk)
- HMS 80:20 -$321/t, up by $6/t w-o-w.
- Shredded -$341/t, up by $6/t w-o-w.
Updates on key importers
Turkiye: There was cautious demand for US-origin HMS 80:20 in Turkiye, with mills selectively booking cargoes to replenish inventories. While purchases were sluggish, hopes of a market recovery lingered. Additionally, US-origin HMS 80:20 offers rose to $340-345/t CFR on firmer sentiment from sellers, supported by tight domestic supply. Mills resisted higher prices, citing weak rebar sales and limited end-user demand, keeping tradable levels in the lower $338-340/t CFR range.
One trader noted over 20 vessels might still be needed for July and early August shipments due to slow bookings so far, but mills are holding back firmly, refusing to accept prices above $340/t CFR.
Factors limiting buying interest
- Reluctance among US sellers to drop offers below $345-350/t CFR
- Narrow rebar margins discouraging mills from building large inventories
- Weak rebar demand both domestically and in export markets
Bangladesh: Demand for US-origin ferrous scrap in Bangladesh slowed this week, as persistent monsoon rains and weak finished steel sales weighed on buying interest. A Chattogram-based trader informed BigMint that US West Coast-origin bulk offers were at $350/t for HMS, $355/t for shredded, and $360/t for the bonus grade. Two US yard deals for HMS were done at $346/t and $350/t CFR Chattogram, each including shredded and bonus scrap, though their prices were not specified.
Market sentiment was weak due to weather-related disruptions and sluggish construction and manufacturing activity. Despite a slight recovery in the Bangladeshi taka, downstream steel demand was soft, making importers cautious about new bookings.
Vietnam: Demand for US-origin ferrous scrap in Vietnam remained cautious despite slight price gains. Offers for HMS 80:20 bulk were at $345-350/t CFR, while mills kept bids near $335/t, indicating wide bid-offer disparities.
Weak steel prices, the depreciation of the dong, and uncertainty over the expiring pause on the 46% US tariff, plus geopolitical tensions, kept Vietnamese buyers conservative about new US-origin scrap bookings.
US-origin HMS 80:20, bulk – CFR assessments
- Turkiye – up by $3/t to $345/t.
- Vietnam – up by $2/t to $340/t.
- Bangladesh – down by $3/t to $367/t.
Outlook
Sellers expect the July domestic ferrous scrap trade to progress slowly, especially with the Independence Day holiday falling on a Friday. A participant stated that they do not expect scrap prices to rise, as heavy rains in Vietnam and Bangladesh are slowing fresh inquiries to yards. Meanwhile, Turkiye has gone nearly a month without significant bulk purchases of US cargo, resulting in surplus material now available for domestic US mills. However, there is optimism that more Turkish mills will return to the market.
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