- Turkish prices remain firm amid limited US cargoes, stable freights
- Indian demand stays subdued amid bid-offer gaps, lean mill margins
Global ferrous scrap markets remained mixed during the week ended 8 May, with firm sentiment in Turkiye, Pakistan, and South Korea contrasting against subdued buying activity in India and cautious trading in Bangladesh amid weak steel demand and persistent bid-offer gaps.
Turkiye: The deep-sea imported scrap market remained largely firm yet cautious throughout the week, supported by limited US-origin cargo availability and firm freights from the US East Coast and Europe. Premium HMS 80:20 prices hovered around $410-414/t CFR, while tradable values for US-origin cargoes were heard at $410-416/t CFR. Market activity stayed relatively muted early in the week as participants awaited fresh June-shipment bookings for clearer price direction.
Despite supply-side support, Turkish mills continued resisting higher offers due to weak domestic and export rebar demand, elevated energy costs, and squeezed margins. Europe/West Black Sea-origin HMS 80:20 deals were heard around $408/t CFR, Denmark-origin cargoes near $411/t CFR, while UK HMS 80:20 dock levels were indicated at EUR 300-310/t, keeping sentiment firm but range-bound.
India: The imported scrap market remained subdued throughout the week, with weak steel demand, poor mill margins, and preference for domestic scrap continuing to restrict buying activity. Market participation stayed limited, while persistent bid-offer gaps kept most buyers away from fresh bookings. Early-week activity was further impacted by a UK and European bank holiday, reducing fresh offer availability.
Selective trades were concluded for competitively priced cargoes, including Somalia-origin HMS 80:20 at around $365/t CFR Mundra and Africa-origin LMS near $320/t CFR Mundra. Offer levels across origins largely remained above workable buyer levels, with Australia-origin HMS 80:20 heard at $370-390/t CFR, UK-origin HMS at $350-370/t CFR, and UK-origin shredded near $395-415/t CFR.
Market participants noted that limited African export availability, rising domestic consumption in supplier countries, and continued preference for lower-priced material kept sentiment cautious. Buyers largely remained focused on immediate requirements.
Pakistan: The imported scrap market remained largely firm throughout the week, supported by steady deal flow and selective buying activity despite cautious sentiment. UK/EU-origin shredded scrap deals were concluded within $423-428/t CFR Qasim, while Malaysia-origin busheling transactions were heard at around $430-443/t CFR Karachi/Qasim. PNS deals were concluded near $412/t CFR Karachi, and turning scrap deals around $370/t CFR Qasim. Market participants noted that firm supplier offers continued supporting prices, although weak downstream steel demand and buyer resistance to higher levels.
Bangladesh: The imported scrap market remained largely stable throughout the week, though buying activity stayed cautious amid resistance to higher offer levels. HMS offers to Chattogram were heard at $390-405/t CFR, shredded near $410/t CFR, and PNS around $425-430/t CFR, while high freight costs and weak seasonal steel demand continued limiting aggressive procurement activity.
South Korea: South Korean steel mills raised scrap purchase prices by KRW 10-15/kg ($7-10/t), supported by competitive buying and tight domestic scrap supply. Hyundai Steel, POSCO, SeAH Besteel, Korea Steel, Korea Special Steel, and Dongkuk Steel all announced price hikes or special purchase programmes effective from 5-7 May.
US: Export scrap prices remained largely stable w-o-w, with HMS 80:20 at $380/t FOB and shredded at $400/t FOB amid firm May scrap sentiment and steady mill demand. US-origin HMS 80:20 to Turkiye increased to $414/t CFR, while Vietnam remained stable at $398/t CFR and Bangladesh softened by $2/t to $398/t CFR.
Europe: Derichebourg’s acquisition of Scholz Recycling is expected to significantly strengthen its scrap sourcing network across Central and Eastern Europe, adding over 100 recycling facilities and expanding access to ferrous and non-ferrous scrap amid intensifying competition for raw materials.
UAE: Domestic scrap prices remained largely stable w-o-w, with HMS (80:20) processed assessed at AED 1,038/t ($283/t) DAP Abu Dhabi amid cautious buying sentiment and moderate trading activity. Market participants continued monitoring Strait of Hormuz tensions and freight volatility.
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