The global ferrous scrap market continued the downturn this week as the Turkish imported scrap market remained silent with slow negotiations even as the Vietnamese import market saw lower demand for finished long products in both the domestic and overseas markets. Shagang Steel of China slashed bids for scrap consequently this week, whereas Tokyo steel lifted its bid for the first time this month.
The South Asian scrap market remained active as Indian containerised and bulk deals concluded late this week, followed by containerised trades into Pakistan, whereas the Bangladesh market has lately been active but slow.
- Turkiye’s imported scrap trade muted: Turkiye’s import scrap market remained muted. Both supplier and buyer-side negotiations slowed as the finished steel market is yet to improve. A majority of buyers chose to wait and watch for clearer market direction to emerge. In the interim, buyers and steel mills may seek for some reduction in November shipments.
SteelMint’s assessment for US-origin HMS 1&2 (80:20) stands at $364/t CFR, down $6/t w-o-w.
- Vietnamese imported scrap trades slow: Due to bearish finished products demand in both the domestic and overseas markets, scrap buyers and steel mills continued to operate at a lower level throughout the week. Additionally, SteelMint learnt that several mills have reduced production and are operating at 50% capacity. Indicative offers for US-origin bulk HMS 1&2 (80:20) were at $370/t.
- Japanese scrap export market stable: After the conclusion of the Kanto scrap export tender last week, scrap export prices remained stable. Furthermore, limited scrap availability and increasing demand in the domestic market kept prices supported.
SteelMint’s assessment for Japanese H2 scrap export prices stands at JPY 49,800/t ($337/t) FOB unchanged w-o-w.
- Tokyo Steel lifts scrap buy prices: Japan’s major EAF steelmaker, Tokyo Steel, increased its scrap buy prices for the first time this month. The company uplifted bids for H2 scrap by JPY 500/t ($3/t) for all of its plants. Post-revision, prices of H2 scrap are at JPY 49,000/t ($323/t) delivered to the Tahara plant and JPY 50,000/t ($330/t) for the Utsunomiya plant.
- Shagang lowers scrap purchase prices thrice: Jiangsu Shagang Group’s scrap buying prices were reduced three times this week due to uncertainty about the recovery of steel demand. The company trimmed scrap purchase prices by a total of RMB 150/t ($21/t) for HMS (6-10 mm) and stood at RMB 2,810 /t ($388/t) delivered to headquarters, with 13% VAT.
- Pakistan’s imported scrap market sluggish: Trade slowed down as a result of limited liquidity, a tumultuous political situation, and the fluctuating currency, which drove steel factories and purchasers away. Many construction projects are also on hold due to limited fund releases from the government.
SteelMint’s assessment for shredded scrap in Pakistan is $450/t CFR Qasim down $6/t w-o-w.
- Bangladesh’s imported scrap market volatile: Despite the continued sluggish domestic market sentiments, many major mills are active in booking bulk cargoes. Market activity has been significantly hampered by LC restrictions, limited credit availability with banks, and weak finished steel demand.
Meanwhile, the containerised market in Bangladesh remained dull and secondary mills have stepped aside to wait and watch.
SteelMint’s assessment of shredded scrap from the UK is currently $475/t CFR down by $5/t w-o-w.
- India’s imported scrap market weakens: The festive season has kept trades slow, and the market turned weak on decreasing prices and limited buying activities. Market participants have informed that Indian buyers booked only hand-to-mouth. Despite a lack of demand, some bulk scrap booking was heard in the week from the UK.
Around 44,000 t of mixed scrap material was booked from the UK. Out of this, 15,000 t of busheling scrap was traded at $450/t, 6,500 t of blue steel at $435/t, 8,000 t of bonus at $425/t, and 14,500 t of shredded at $425/t CFR Chennai.
SteelMint’s assessment for shredded scrap of Europe origin stands at $448/t CFR Nhava Sheva, down by $12/t
w-o-w.
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