- India sentiment weakened as rupee hit its lowest level
- Japan export mood softened despite tight collection
Global ferrous imported scrap market stayed cautious but mildly firmer in the week ended 30 January, with sellers supported by tight supply and currency shifts. Turkiye saw cost-driven firmness, while India, Pakistan and Bangladesh remained selective, as Japan softened slightly and United States stayed supported by weather-hit supply.
Turkiye: Deep-sea scrap market remained cautious but slightly firmer over the week, supported by cost-side pressures rather than demand. Tighter scrap collection in the US due to severe winter weather, a stronger euro, and rising dry bulk freight rates pushed sellers’ breakeven levels higher.
US-origin HMS 80:20 was indicated around $380-382/t CFR, EU material near $375/t, and Baltic cargoes at $377-378/t. However, Turkish mills largely stayed on the sidelines, as weak rebar sales and tight margins limited buying interest, keeping the market in a wait-and-watch mode despite firm offers.
India: Imported scrap market stayed weak through the week as the rupee depreciated and steel sales remained poor, while the INR-US conversion touched its highest level since existance, further tightening import affordability. Mundra remained firmer than Chennai, with HMS 80:20 mostly around $350/t CFR Mundra versus $330-335/t CFR Chennai for UK/EU, keeping mills focused on domestic scrap.
Shredded and higher grades struggled as buyers resisted firm offers. Canada/US shredded at $366-368/t CFR Nhava Sheva and EU HMS 80:20 at $340-345/t drew lower bids. Australia-origin offers into Chennai at $330-334/t for HMS 80:20 and near $350/t for shredded also faced pushback amid a softer southern market.
In the last seven days, India imported around 3,000-4,000 t of ferrous scrap, of which roughly 1,500-2,000 t was HMS 80:20 priced between 325-353 CFR, while the rest consisted of turning boring, re-rollable scrap, and other mixed machining grades.
Pakistan: Imported scrap market remained firm in recent days but cautious through the week, with limited buying activity and prices hovering over $380/t CFR level with deals concluded at $378-382/t levels. Buyers stayed selective amid high offer levels and uncertain regional cues, while several mills remained inactive, monitoring sentiment in India for direction.
HMS demand was relatively better, with workable levels at $365-375/t CFR, keeping Pakistan attractive for some suppliers. Shredded scrap showed wide price disparities, with UK/EU offers around $380/t CFR, UAE material quoted higher at $395-plus, and Bahrain-origin cargoes near $390-plus.
Bangladesh: Imported ferrous scrap market remained largely stable and cautious throughout the week, with buyers consistently resisting higher offers and restricting purchases to workable price levels. Activity stayed muted amid weak domestic sentiment, with mills unwilling to chase prices without clearer demand signals.
Oceania-origin containerised material traded within established ranges, with HMS 80:20 at $345-350/t CFR Chattogram, HMS 90:10 at $355-360/t, shredded at $365-370/t, and PNS at $370-375/t. In the downstream market, rebar prices held at BDT 75,000-80,000/t ($611-652/t), reinforcing a wait-and-see approach.
Japan: Japan’s scrap market remained cautious through the week, with prices pressured by a stronger JPY despite tight supply conditions. BigMint assessed H2 scrap at JPY 44,800/t ($291/t) FOB Tokyo Bay, down JPY 400/t ($3/t) w-o-w. Export offers to Vietnam firmed to $330-335/t CFR, while bids improved to around $325/t.
Additionally, Tokyo Steel cut prices by two times this week by JPY 500/t Okayama and Kyushu plant and rest remains stable amid easing arrivals.
US: Scrap prices edged higher over the week, supported by tightening supply as severe winter weather disrupted scrap collection across the eastern region. Seller sentiment strengthened despite subdued spot activity, with expectations of higher February settlements for shredded scrap.
Leave a Reply