- Post-monsoon rebar demand drives up import purchases in India
- Japan’s H2 prices fall amid cautious demand, weak steel output
Global ferrous scrap markets remained firm in the week ended 12 September, with Turkiye strengthening on healthy demand, India and Pakistan supported by higher steel prices, while Bangladesh stayed elevated amid limited availability and active bookings.
Turkiye: The deep-sea imported scrap market remained stable through the first half of the week before turning firmer, supported by healthy demand, strengthening rebar fundamentals and tightening billet availability. US-origin HMS 80:20 tradable values rose from $380-381/t to $381-385/t CFR, while domestic scrap prices also increased.
The market strengthened sharply towards the end of the week, with HMS 80:20 rising $9-10/t d-o-d to $390/t CFR following a US-origin deal at this level. Recent European deals included material from France at $385/t, Germany at $387/t, UK at $385/t and Netherlands at $381/t CFR. Despite healthy demand and limited Black Sea billet availability, Turkish mills remained cautious over margins and price volatility.
Turkish steelmakers raised domestic scrap purchase prices in early September, bringing local values closer to firmer import scrap and finished-steel prices. Between September 5 and 10, four producers revised prices, with three increasing rates by TRY 350-400/t ($7-8/t) and another by up to TRY 1,000/t ($20/t), depending on grade and material.
India: The imported containerised scrap market remained firm through the week, initially supported by fresh buying interest, competitive African cargoes and expectations of stronger post-monsoon demand. Brazilian and New Zealand HMS 80:20 traded around $365/t CFR Chennai, while West African material was booked near $370/t. Restocking demand and stronger finished and semi-finished steel sales provided additional support.
Market activity slowed mid-week as finished steel sales and mill inquiries weakened, but sentiment strengthened again towards the weekend on firmer TMT rebar and finished steel demand. Domestic rebar prices also increased, supporting scrap procurement ahead of the post-monsoon and festive season. Chennai remained weaker than Nhava Sheva and Mundra, with HMS 80:20 around $360/t CFR, while a Brazil-origin cargo was heard booked at $370-375/t CFR Chennai.
Over the last seven days, around 10,000-12,000 t of imported ferrous scrap bookings were tracked in India, including 5,000-6,000 t of HMS 80:20, while rest remian busheling, turning borings and bundles were also booked.
Pakistan: Imported scrap market remained firm through the week, with UK-origin shredded scrap trading at $418-420/t CFR Qasim and asking prices rising to $420-425/t. Buyers generally targeted $415-418/t, while Malaysian suppliers remained absent due to freight costs above $1,800/t. However, weak construction activity, payment issues and revised tax-related uncertainty kept buying cautious.
Towards the end of the week, UK shredded was reportedly sold at $418/t CFR Qasim, while premium material was offered as high as $425/t. PSIC-related shipment disruptions also persisted, with some suppliers halting loadings. Meanwhile, a leading mill raised ex-factory rebar prices by PKR 1,000/t to PKR 252,000/t, supporting finished-steel and scrap market sentiment.
Bangladesh: Imported scrap market remained firm at elevated levels throughout the week, supported by limited availability and active transactions. UK-origin shredded scrap was offered at $410-412/t CFR, while HMS 80:20 was quoted at $370-375/t. Later, Australian/New Zealand-origin shredded scrap was booked at $400-410/t CFR Chattogram, with HMS 90:10 at $385-390/t and Philippines-origin PNS at $378/t.
Market activity strengthened over the past two weeks, with limited scrap availability supporting seller offers. A Chattogram-based mill also secured 20,000 t in the September Kanto tender at JPY 48,113/t FAS ($313.6/t). However, subdued Indian demand prompted some sellers to redirect cargoes towards Bangladesh and other regional markets.
Japan: H2 export scrap prices remained fell by JPY 500/t at JPY 48,300/t ($315/t) FOB Tokyo Bay. Japanese domestic scrap sentiment remained cautious amid weak steel production and limited buying, although demand is expected to improve as the summer slowdown ends and construction activity strengthens.
UAE: Scrap prices remained largely stable this week, with BigMint assessing processed HMS 80:20 at AED 1,015/t ($276/t), down AED 2/t w-o-w. Other grades were assessed at AED 920-960/t for HMS 80:20, AED 1,050-1,070/t for processed PNS and AED 1,070-1,090/t for shredded. A Dubai-based trader indicated processed HMS at AED 1,000-1,010/t and shredded at AED 1,060-1,070/t DAP Abu Dhabi.
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