Global scrap trade remained below par throughout the week. The Turkish imported scrap market fell due to weak demand for finished steel. Vietnam’s scrap market was impacted by harsh weather conditions as well as weak steel demand. Scrap trade in South Asia, especially in Bangladesh, remained subdued this week due to flat sentiments in steel. However, trades in India regained momentum towards the weekend due to cost-effectiveness of imported material over domestic.
- Turkish imported scrap market down amid weak steel demand: Turkish imported scrap market experienced a slowdown, with limited transactions taking place. Prices have been influenced by weak finished steel demand in domestic and international markets. Market participants are holding back further booking as they are expecting further fall in prices.
SteelMint’s price assessment for US-origin HMS 1&2 (80:20) is at $350/t CFR, down significantly by $40-45/t w-o-w.
- Vietnam’s imported scrap prices fall over 18-month low: The import of scrap into Vietnam remained silent for yet another month. Prices have dropped to over 18-month lows and are continually dropping. Due to constant heavy rain in many parts of the nation and bearish demand for finished and semi-finished steel, the market remained gloomy.
SteelMint’s assessment of H2 scrap from Japan stands at $345/t CFR, dropped sharply by $35/t w-o-w.
- Japanese scrap export offers fall to 18-month low: For yet another week, Japanese scrap export offers trended lower. Given that prices have reached an 18-month low, market participants anticipate that the slump will persist for the time being. Major buyers are hesitating to buy any bulk cargo at current offers.
SteelMint’s assessment for Japanese H2 scrap export prices stands at JPY 38,500/t ($289/t) FOB, down by JPY 2,500 ($19/t) w-o-w.
- Tokyo steel cut prices twice this week: Tokyo Steel has trimmed scrap purchase prices twice this week. The company has cut bids totally by JPY 4,000/t ($30/t) for all of its plants. After final adjustment, bid prices for H2 scrap are at JPY 42,000/t ($310/t) delivered to the Tahara plant, and JPY 41,000/t ($302/t) to the Utsunomiya works.
- Bangladesh’s imported scrap market turns silent: Bangladeshi containerised scrap buyers were mostly inactive in bookings any fresh slots owing to volatility in the market and players are not in the position to take risks, SteelMint learnt. High fluctuation in currency exchange rates, LC issue, load shedding, heavy rains, and dull demand from finished steel users kept buyers quiet.
SteelMint’s assessment for UK-origin shredded scrap stands at $475/t CFR, down by $15-20/t w-o-w.
Similarly, the bulk scrap market remained silent for another week. Buyers are holding negotiations since the market is dropping. Market participants expect that bulk buyers will be back in the market in the coming months.
- Pakistan’s imported scrap market witnesses fluctuation: The imported scrap market remained silent in the week as currency depreciation kept buyers on the sidelines. However, the market witnessed around 5,000-7,000 t of deals concluded towards the weekend. Major issues in opening LC, currency depriciation and bid-offer disparity kept trade volumes low.
SteelMint’s assessment for UK/EU-origin shredded stands at $462/t CFR Qasim, largely stable w-o-w.
- India’s imported scrap trades strengthen: Imported ferrous scrap prices slipped at the beginning of the week after the Turkiye deal, turning buyers cautious about booking any fresh cargo. However, imported scrap trades regained momentum due to the cost-effectiveness of imported material compared to domestic prices and increasing finished steel demand in the country.
Recently, a total of 4,000 t of shredded scrap of UK/Europe-origin was traded at $460-465/t CFR Nhava Sheva. SteelMint’s assessment of Europe-origin shredded scrap stands at $460-465/t CFR Nhava Sheva.
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