- Buying remains subdued in India amid weak import economics
- Selective bookings by Pakistani mills continue despite elevated freights
Global ferrous scrap markets remained mixed in the week ended 8 August, with buying cautious across South Asia, Turkish and UAE markets holding firm, Japanese export prices softening, and freight movements mixed amid selective regional demand.
Turkiye: Imported deep-sea ferrous scrap prices remained broadly stable through the week as tight European scrap availability and logistical disruptions on the Rhine continued to support prices. US-origin HMS 80:20 remained around $375-377/t CFR, while EU-origin material softened to $368-371/t CFR amid slightly improved availability.
Trading activity remained muted towards the weekend as weak rebar sales and subdued summer demand kept mills cautious. Despite limited fresh bookings, tighter European supply and restricted German exports due to low Rhine water levels continued to provide support, keeping the market largely range-bound.
India: Imported ferrous scrap buying remained subdued through the week as weak steel demand, poor import economics, and cheaper domestic scrap kept mills cautious. HMS 80:20 bids stayed below offers, with the gap limiting fresh bulk bookings.
Lower-priced containerised cargoes continued to attract selective interest, while premium grades remained under pressure. Africa-origin HMS was heard around $340/t CFR, EU-origin near $325/t, and Australia/New Zealand HMS 80:20 at $315-320/t CFR Chennai. UK shredded offers stayed high at $395-400/t CFR against limited southern mill interest.
Over the last seven days, around 3,000-3,500 t of ferrous scrap was booked for India, including 750-1,000 t of Chile-origin HMS 90:10, 1,000-1,5000 t of Southeast Asia-origin turnings, and 1,000-1,500 t of Central America-origin light HMS.
Freight: India-bound freights showed a mixed trend during the week ended 6 August. Melbourne-Chennai rates remained stable at $1,300/FCL, while London Gateway-Chennai increased to $1,421/FCL and London Gateway-JNPT edged up to $1,324/FCL, supported by carrier rate adjustments and steady booking activity.
Additionally, India’s steel metallic mix shifted towards domestic scrap in H1CY’26, with domestic scrap consumption up 10% to 22 mnt and imports down to 2 mnt, while DRI remained dominant at 31 mnt.
Pakistan: Imported ferrous scrap trading remained subdued for most of the week as buyers initially stayed cautious and delayed September bookings amid uncertain price direction and weak finished steel demand. However, activity improved towards the weekend, with UK-origin shredded booked at $412/t CFR Qasim, while current workable levels remained around $408-410/t.
Higher freight costs, including war-risk surcharges, continued to support supplier offers and widen the bid-offer gap. An on-water UK shredded cargo was sold at $425/t CFR Qasim, while prompt and booking material showed a $10-15/t premium difference. Enquiries for prompt cargoes were heard around $415-420/t CFR, indicating selective buying despite cautious sentiment.
Bangladesh: Imported ferrous scrap buying remained subdued throughout the week as weak finished steel demand, mill losses, and letter of credit (LC)-related banking constraints limited fresh bookings. Mills favoured cheaper domestic scrap, while the bid-offer gap persisted. Australia/New Zealand HMS 90:10 offers eased to $365/t CFR Chattogram from $375/t, against bids near $360/t, while US HMS remained at $375-380/t and UK shredded around $395/t CFR.
Japan: H2 export scrap prices FOB Tokyo Bay fell by JPY 2,100/t to JPY 48,500/t due to the Kanto tender.
Japan’s August Kanto export scrap tender settled at JPY 49,086/t FAS ($309.87/t), down JPY 3,422/t m-o-m, reversing gains seen during April-July. The 20,000 t tender attracted 12 bids covering 105,400 t, with shipment to a Bangladesh mill by September 30 and estimated landed cost above $380/t CFR Chattogram.
Meanwhile, Tokyo Steel announced its third H2 scrap price cut in August, reducing prices by JPY 500-1,000/t across all plants from 8 August. This marks the eighth consecutive cut since July and the first after the 7 August Kanto tender.
UAE: Ferrous scrap market remained stable during the week ended 7 August, supported by steady domestic steel demand and construction activity. Processed HMS 80:20 was assessed at AED 975/t ($265/t) DAP Abu Dhabi, while offers stood at AED 980-1,000/t. Buying remained requirement-based, with limited spot and export activity.
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