- Japan: Tokyo Steel’s fifth price cut weighed on H2 sentiment.
- UAE: Domestic scrap prices fell to their lowest since October 2023.
Global ferrous scrap markets showed mixed trends during the week ended 1 August. Turkish deep-sea prices remained firm on tight European supply, while South Asian buying stayed subdued amid weak steel demand. Japan and the UAE witnessed price declines, reflecting softer domestic demand and ample scrap availability.
Turkiye: Imported deep-sea ferrous scrap prices strengthened early in the week as tight European scrap availability and active mill bookings for late August and September shipments supported sentiment. Limited scrap collection, elevated freight costs and disruptions to Rhine river logistics kept sellers firm, lifting workable HMS 80:20 levels to around $375-380/t CFR.
Trading activity slowed during the second half of the week as mills paused purchases following earlier restocking and the summer holiday period reduced market participation. Despite weaker finished long steel demand and tight mill margins, suppliers resisted price cuts amid constrained scrap availability, while a Galloo-Toscelik HMS 80:20 deal at $368/t CFR and stable workable levels of $375-380/t CFR indicated the market remained broadly supported rather than reversing lower.
India: Imported ferrous scrap trading remained subdued throughout the week as weak finished steel demand, the ongoing monsoon season and poor import viability continued to suppress buying interest. Mills largely maintained hand-to-mouth procurement, preferring domestic scrap amid speculative buying in the TMT segment and restocking by re-rollers, which supported local scrap prices.
Containerised import activity remained limited as a wide bid-offer gap and firm overseas offers discouraged fresh bookings. Africa-origin LMS and HMS bundles were heard at around $290/t CFR and $305/t CFR, respectively, while workable levels for UK-origin HMS remained around $320-330/t CFR against offers at $330-350/t CFR. UK-origin shredded scrap offers eased gradually to $385-395/t CFR by week-end from around $395-400/t CFR earlier in the week, although buyers continued to indicate tradable levels below prevailing offers.
Addittionaly, India’s ferrous scrap imports fell 50% y-o-y to 2.33 mnt in H1CY’26, the lowest in five years, as improved domestic scrap availability and weak import economics reduced reliance on overseas cargoes despite higher steel and scrap consumption.
Freight: Freight rates showed a mixed trend during the week ended 30 July. Rates to Chennai declined to around $1,300-1,420/FCL amid weak Indian import demand, while the London Gateway-JNPT route remained stable around $1,320-1,325/FCL, supported by carrier pricing discipline and additional surcharges.
Pakistan: Imported ferrous scrap prices remained firm throughout the week, supported by limited UK-origin scrap availability, constrained UAE supply and elevated freight costs, despite subdued regional demand.
UK-origin shredded scrap traded mostly in the $416-419/t CFR Port Qasim range during the week, with fresh offers initially heard at $420-425/t CFR before easing to $410-415/t CFR towards the weekend. HMS 80:20 workable levels were indicated around $385/t CFR, while buyers continued to negotiate lower prices as availability gradually improved and geopolitical concerns eased.
Bangladesh: Imported ferrous scrap trading remained subdued throughout the week as weak steel demand, monsoon disruptions, ample inventories and persistent LC constraints kept mills cautious and delayed fresh bookings.
Bulk HMS offers were largely heard at $390-395/t CFR Chattogram against buyer indications near $385/t CFR, restricting fresh deals. US-origin HMS remained the most competitive at around $380/t CFR, while Singapore-origin HMS was offered near $400/t CFR. Shredded scrap was indicated at $400-405/t CFR, with Japanese H2 and HS grades quoted at $395-400/t CFR and $425/t CFR, respectively, attracting limited buying interest.
Japan: H2 export scrap prices FOB Tokyo Bay fell by JPY 200/t to JPY 50,600/t. Meanwhile, Tokyo Steel reduced H2 scrap purchase prices by JPY 500-1,000/t across most plants, effective 30 July, marking its fifth consecutive price cut amid weak domestic scrap demand. H2 buying prices now range between JPY 50,500/t and JPY 53,000/t across key plants.
UAE: Domestic processed scrap prices declined further during the week ended 31 July as weak steel demand and ample local supply following the export ban kept buying cautious. Processed HMS 80:20 was assessed at AED 975/t DAP Abu Dhabi, the lowest since October 2023.
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