- US scrap export rises on Turkish demand
- Bangladesh demand weak on freight, construction slump
BigMint’s US ferrous scrap export index rose by $9/t this week, supported by strong Turkish demand and tightening global supply. With domestic scrap inventories steady, there is limited buffer to absorb any price corrections, further supporting export prices in the near term.
FOB assessments (US East Coast, bulk)
- HMS 80:20 up by $9/t w-o-w to $319/t.
- Shredded up by $9/t w-o-w to $339/t,
Key importers
Turkiye: Demand for US-origin scrap has regained strength, highlighted by a recent deep-sea bulk booking to an East Marmara mill at $338/t CFR for HMS 80:20 and $358/t CFR for shredded scrap-marking a notable w-o-w increase.
The upward momentum is supported by:
- Rising collection costs in the US and Europe
- Improved sentiment in Turkiye’s rebar market
- Active restocking by Turkish mills
Current offers for US HMS 80:20 are heard at $345-350/t CFR, while Baltic-origin scrap is slightly lower at $340-345/t CFR. However, Turkish mills remain selective, seeking to secure better finished steel prices before committing to costlier raw materials. However, with a tightening global scrap market, demand for US cargoes is expected to remain firm.
Bangladesh: Demand for US-origin ferrous scrap in Bangladesh has softened amid rising freight rates and sluggish construction activity. Bulk offers for US West Coast HMS 80:20 were heard at $372-375/t CFR, but no significant deals were confirmed.
Additionally, domHOestic rebar prices in Bangladesh dropped by BDT 400-800/t ($3-7/t) as mills offered discounts to spur sales. Continued weak construction activity and regional geopolitical tensions-especially between India and Pakistan-have dampened overall sentiment and kept scrap demand under pressure.
Vietnam: Demand for US-origin HMS 80:20 scrap in Vietnam held steady at $340/t CFR, with no week-on-week change. Market activity remained muted due to the extended Labour Day holidays.
While subdued domestic demand in Japan led exporters to reduce prices, increasing competition in the Asian market and capping upside potential for US-origin bulk scrap in Vietnam.
CFR assessments (bulk)
CFR Turkiye: US HMS 80:20 up $8 to $338/t
CFR Vietnam: US HMS 80:20 stable to $340/t
CFR Chattogram: US HMS 80:20 up $2 to $372/t
Outlook
US scrap exports are gaining traction due to stronger Turkish demand, supported by rising collection costs and tight supply. A softening US market and limited supply from the EU are preventing further price increases. However, the overall market outlook for May remains weak, with Turkish CFR price stabilisation expected around $350/t.
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