- Turkiye: Prices steady, demand weak as mills delay buying
- India: Market stable, buyers resist high import offers
Global ferrous scrap prices were stable this week, with limited buying from South Asia amid monsoon disruptions and soft steel demand. Turkish and US prices held firm, while Japan and Vietnam saw slight declines on weak trade.
Turkiye: Turkiye’s imported scrap market stayed mostly flat this week, with US-origin HMS 80:20 at $346/t CFR, slightly down from $347/t. Mills limited purchases as most August cargoes were secured, and fresh deals remained scarce.
A central bank rate cut to 43% boosted sentiment. However, most mills remained conservative, not yet willing to pay premiums amid steady scrap availability. EU- and Baltic-origin HMS ranged between $340-345/t CFR.
Despite quiet trade, expectations for September shipments firmed up, with sellers holding offers above $350/t CFR on hopes of stronger finished steel demand.
India: India’s imported scrap prices were stable this week as buyers resisted high offers due to soft finished steel demand and improved domestic scrap availability. No offers were observed from the UK/EU, with suppliers holding back material, as they secured higher prices of $20-22/t more from other markets such as Pakistan.
Last heard offers for UK-origin shredded offers were at $360-365/t CFR and HMS 80:20 at $335-340/t.
Pakistan: Pakistan’s imported scrap market showed mixed trends. Early in the week, activity was muted due to weak rebar demand, currency volatility, and monsoon-related disruptions. European shredded offers held at $385/t CFR Port Qasim, but trades were limited amid poor mill appetite and logistical issues.
Sentiment improved slightly after federal budget changes eased import restrictions and raised duties on finished steel, prompting selective restocking from the UAE and Europe at $380-382/t CFR.
Bangladesh: Bangladesh’s imported scrap market remained quiet as mills delayed purchases amid monsoon disruptions, weak steel demand, and political uncertainty. Adequate inventories reduced urgency. Despite offers from Australia, Japan, and the US West Coast, buyer interest stayed low due to a bid-offer gap, with shredded offers at $375-380/t CFR and bids at $368-370/t.
Limited deal activity persisted. Indonesian buying also tightened regional availability, reducing Bangladesh’s sourcing options and adding further pressure on market participants.
Japan: H2 ferrous scrap export prices declined by JPY 550/t ($4/t) w-o-w to JPY 40,700/t ($276/t) FOB Tokyo Bay amid weak overseas demand. Offers to Vietnam stood at $312-315/t CFR, but bids remained below $310/t, reflecting cautious sentiment and limited trade.
Demand remained subdued due to high inventories, the monsoon season, and weak steel sales. August may see further pressure as Japanese mills prepare for production cuts, likely leading to domestic scrap oversupply.
Europe: The European Commission introduced a scrap trade tracking system under the Steel and Metals Action Plan (SMAP) to enhance supply security. Ferrous scrap exports to third countries fell 7% in 2024, while total EU exports rose 4% y-o-y in Q1CY’25.
Vietnam: Imported ferrous scrap prices in Vietnam fell amid monsoon disruptions, weak rebar sales, and low regional demand. Mills kept bids low due to high inventories and slow output. Additional cargoes redirected from Asia added pressure.
Domestic activity stayed muted, though infrastructure demand in the south offered some support.
South Korea: South Korea’s scrap inventory at major mills fell by 25,000 t to 891,000 t in late July, ending a five-week rise. Central stocks dropped 6.1%, while southern stocks rose 2.5%. Around 40,200 t of imported scrap arrived, led by 25,200 t at Gwangyang, which faced congestion.
US: Export prices rose $3/t w-o-w, with HMS 80:20 at $320/t and shredded at $340/t FOB. Demand stayed weak in Turkiye, Bangladesh, and Vietnam amid monsoon disruptions. A 50% tariff on Brazilian pig iron may support scrap demand, but the outlook stays mixed.
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