- Weak rebar demand keeps Turkish mills cautious
- Monsoon hampers scrap demand in South Asia
US ferrous scrap export prices remained largely stable w-o-w, as Turkiye – a key market – continued to exercise caution in fresh scrap purchases.
June and July (summer) are typically quiet months for the ferrous scrap trade, but this year’s market has remained resilient. In the US, participants have turned their attention to domestic scrap trading, where prices are proving more attractive than exports.
A market participant suggested that higher steel tariffs are limiting imports of hot-rolled coils (HRCs), helping flat-rolled mills maintain stable melt rates despite a moderately slowing manufacturing sector.
FOB assessments (US East Coast, bulk)
- HMS 80:20 -$320/t, down by $1/t w-o-w.
- Shredded -$340/t, down by $1/t w-o-w.
Updates on key importers
Turkiye: Demand for US-origin scrap in Turkiye stayed cautious, with some deals concluded, but overall, mills largely refrained from new purchases as deep-sea scrap prices edged up to around $347/t CFR.
Factors weighing on Turkish buying interest:
- Bearish sentiment in the rebar market, with mills hesitant to pay above $345/t CFR amid weak finished steel demand.
- Competitive European offers, buoyed by a stronger euro and tighter summer scrap availability, kept pressure on US-origin scrap.
US-origin HMS 80:20 offers mostly ranged between $345-350/t CFR, supported by strong US domestic markets, where sellers achieved $10-15/t premiums over export prices. European scrap offers around $345-346/t CFR continued to challenge US sellers in Turkiye.
Bangladesh: Demand for US-origin scrap in Bangladesh was sluggish this week, weighed down by persistent monsoon rains and slow construction activity.
Additionally, sluggish downstream steel demand further dampened buying interest, keeping market activity challenging for steelmakers.
US West Coast-origin HMS bulk offers for August shipments were reported at $340-345/t CFR, while bulk freights from the US West Coast to Bangladesh held in the $48-52/t range.
Market participants expect demand to remain soft until seasonal conditions improve.
Vietnam: Demand for US-origin bulk HMS scrap in Vietnam remained cautious, with imported ferrous scrap prices edging down w-o-w amid monsoon disruptions and softer regional trends. US-origin HMS 80:20 bulk offers eased to $336-340/t CFR, while bids slipped further to $327-328/t. Buyers stayed conservative, waiting for clearer market signals before committing to fresh purchases.
US-origin HMS 80:20, bulk – CFR assessments
- Turkiye – up by $2/t at $347/t.
- Vietnam – down by $2/t to $336/t.
- Bangladesh – down by $6/t to $349/t.
Outlook
Some expect stable or firmer prices in August for domestic scrap, though uncertainty remains due to possible US tariff changes and shifting global trends. The looming expiry of the US’s 90-day tariff pause adds more unpredictability to the scrap export outlook.
Leave a Reply