- Demand for US-origin bulk scrap softens in Vietnam
- Turkish mills restocking before Eid al-Adha
BigMint’s US ferrous scrap export index rose by $7/t this week, reflecting a renewed uptick in overseas buying interest, most notably from Turkiye, amid stronger finished steel markets and early restocking activity ahead of the upcoming Eid holidays. However, other buyers like Vietnam, Bangladesh shown sluggish interest for US origin scrap so far.
FOB assessments (US East Coast, bulk)
- HMS 80:20 up by $7/t w-o-w to $326/t.
- Shredded up by $7/t w-o-w to $346/t.
Key importers
Turkiye: Demand for US-origin HMS 80:20 bulk scrap in Turkiye improved this week, with prices rising to $347/t CFR, up $7/t w-o-w. While trade volumes were still limited due to mills resisting higher offers above $345/t CFR, supplier sentiment turned positive as they held firm around $345-350/t CFR. The deep-sea market is showing signs of recovery, with mills expected to resume active bookings for June shipments. The near-term outlook remains supported by firm domestic steel market fundamentals and restocking activity ahead of Eid al-Adha.
Reasons for increasing demand in Turkiye:
- Stronger domestic rebar sales boosted mill margins, making scrap purchases more viable.
- Improved rebar order books encouraged mills to plan restocking for June shipments.
- Mills are preparing for higher production ahead of Eid al-Adha, prompting early scrap procurement.
Bangladesh: Demand for US-origin HMS 80:20 bulk scrap in Bangladesh remained muted this week, with prices stable at $372/t CFR. Despite no major issues with LC openings, overall buying interest was limited due to weak construction activity as the monsoon season set in, reducing downstream steel demand and discouraging scrap bookings.
Market participants reported a subdued sentiment, with few active buyers and only limited trades taking place.
While some shredded scrap bulk offers were heard around $375-380/t CFR from Australia, suppliers noted that Bangladesh remains slightly more attractive than India due to a freight advantage.
However, without a significant recovery in domestic steel demand, particularly from the construction sector, US-origin scrap purchases are likely to stay limited in the near term.
Vietnam: Demand for US-origin HMS 80:20 bulk scrap softened, with prices falling by $2/t to $338/t CFR. Spot activity remained thin due to a wide bid-offer gap. Buyers had temporarily shifted to cheaper South American containerised scrap, though restocking interest in H2 may resume soon, driven by logistical constraints from South America.
Domestically, long steel demand improved post-holidays due to active construction and infrastructure work, but export sales remain under pressure from US tariffs.
CFR assessments (bulk)
- CFR Turkiye: US HMS 80:20 up $9/t to $347/t
- CFR Vietnam: US HMS 80:20 down by $2/t to $338/t
- CFR Chattogram: US HMS 80:20 stable to $372/t
Outlook
Turkiye is likely to remain an active buyer of US scrap, with mills securing cargoes for June-July shipments. In Southeast Asia, demand from Bangladesh and Vietnam is expected to recover gradually, supported by construction activity. However, other buyers such as Vietnam and Bangladesh have shown sluggish interest for US-origin scrap so far.
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