- South Asian markets remain slow on weak steel demand
- Japan’s Kanto tender prices rise for 10th straight month
Global ferrous scrap markets remained largely cautious during the week ended 16 May 2026, as weak steel demand, currency pressure, squeezed mill margins, and high freight costs limited buying activity across major importing regions despite firm supply-side fundamentals.
Turkiye: The deep-sea imported scrap market remained largely stable during the week as limited cargo availability, firm freight rates, and steady recycler sentiment continued supporting prices. HMS 80:20 prices were mostly heard around $405-415/t CFR, while a US-origin cargo for June shipment was concluded at $418/t CFR for HMS 90:10 and $433/t CFR for shredded scrap. Sellers continued targeting higher levels, supported by elevated raw material and fuel costs.
Trading activity remained limited as Turkish mills resisted higher scrap prices amid weak rebar demand, squeezed margins, and falling finished steel prices, while some buyers shifted towards billet purchases due to financing advantages.
India: India’s imported containerised scrap market remained weak throughout the week as a sharp depreciation in the rupee and widening import parity continued to pressure buying sentiment. Buyers stayed cautious with the rupee nearing 96 against the dollar, while cheaper domestic scrap availability and lower-priced sponge iron further reduced import appetite.
Offers for Europe-origin HMS 80:20 were largely heard at $360-375/t CFR, while shredded scrap offers remained elevated at $385/t CFR. However, workable buying levels stayed significantly lower at around $350-355/t CFR for HMS and $375-380/t CFR for shredded scrap, resulting in very limited fresh bookings. High freight costs from Australia and stronger US domestic scrap prices also restricted export competitiveness.
Weak steel demand, monsoon concerns, and unfavourable currency conditions kept Indian buyers largely away from imports despite slight support from stronger Pakistan market prices.
India’s ferrous scrap imports fell 19% y-o-y to 6.82 mnt in FY’26 due to weak mill margins, rising domestic scrap generation, and lower import competitiveness. However, total scrap consumption rose 17% to a record 41 mnt as domestic scrap availability increased sharply.
Pakistan: The imported scrap market remained slow but relatively stable throughout the week, as weak finished steel demand and cautious sentiment continued to limit buying activity. Shredded scrap offers were largely heard at $420-435/t CFR Qasim, while workable buying levels remained lower at around $415-425/t CFR. Market activity stayed subdued, with steel sales reported at only 45-50% and mill capacity utilisation at around 35-40%, keeping importers cautious ahead of fresh bookings.
Despite weak sentiment, some shredded scrap and Malaysia-origin busheling deals continued for immediate requirements, although cautious buying ahead of Eid al-Adha and rising supplier offers kept overall trading activity slow.
Bangladesh: Bangladesh’s imported scrap market remained slow throughout the week due to weak downstream steel demand, liquidity constraints, and persistent letter of credit (LC)/payment delays, which continued restricting buying activity. UK/EU-origin HMS 80:20 offers were largely heard at $385-390/t CFR, while shredded scrap offers hovered around $400-416/t CFR, with only limited transactions concluded amid cautious market sentiment.
Switzerland: Glencore has entered Turkiye’s deep-sea scrap trade, highlighting the growing institutionalisation of the global scrap market amid rising EAF steelmaking and decarbonisation-driven demand for low-carbon metallics.
Japan: Japan’s Kanto Tetsugen export tender extended its bullish trend for the tenth consecutive month in May, with 10,000 t of H2 scrap booked at JPY 54,602/t ($346/t) FAS amid tight domestic scrap availability, firm mill buying, and limited export supply. Additionally, H2 ferrous scrap export prices were at JPY 54,000/t ($342/t) FOB Tokyo Bay on, down JPY 400/t w-o-w.
China: Shagang Steel raised scrap procurement prices by RMB 50/t on 14 May, taking HMS (6-10 mm) prices to RMB 2,510/t ($370/t), marking its first revision this month compared to RMB 2,460/t ($363/t) on 30 March 2026, inclusive of 13% VAT.
UAE: Domestic ferrous scrap market remained under pressure amid excess local supply and weak export demand, while cautious mill buying pushed HMS (80:20) processed prices down AED 16/t w-o-w to AED 1,022/t DAP Abu Dhabi.
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