- Turkiye, India, Pakistan buyers accept firmer workable scrap levels
- Bangladesh demand stays weak; Japan and US hold steady on supply limits
Global ferrous scrap market stayed firm in the week ended 24 January, with Turkiye, India, and Pakistan seeing mild price increases on tighter supply and stronger offers, while Bangladesh remained subdued and Japan and the US held steady on limited availability and positive sentiment.
Turkiye: Deep-sea imported scrap market in Turkiye remained largely stable during the week, supported by tight seasonal supply, strong US domestic demand, and limited export availability. Sell-side optimism and high collection costs in Europe helped underpin prices, while a firmer euro and rising raw material costs added support. However, weak domestic and export rebar demand, harsh winter conditions, and delivery delays for February cargoes kept mills cautious and capped further upside.
US-origin HMS 80:20 was mostly heard in the range of $375-379/t CFR, while EU-origin material traded lower at around $370-373/t CFR. Despite sellers targeting $380/t CFR, Turkish mills largely resisted higher levels, keeping the market rangebound.
India: India’s imported ferrous scrap market moved unevenly through the week, with early buying momentum fading as overseas offer levels firmed and the rupee weakened. Shredded was heard at $345-355/t CFR, HMS 80:20 at $320-335/t, and PNS at $355-360/t, while selective bookings from Hong Kong, Chile, Canada, and New Zealand reflected cautious procurement. EU shredded rose above $365/t amid tight supply and higher freight.
Sentiment remained pressured as the rupee approached INR 92/$ and downstream steel demand stayed weak, keeping mills conservative and limiting purchases to essential, cost-effective cargoes. Mild expectations of a March-April improvement offered some optimism, but buying remained largely restrained.
Over the past 7 days, India imported roughly 8,000 t of containerised scrap, including HMS in the $335-348/t CFR range, shredded from Canada at $360-362/t CFR, NTP Thailand at $363/t CFR, and several small parcels of bales, 60:40, and LMS across Chennai, Mundra, and West Coast ports.
Pakistan: The imported scrap market in Pakistan remained cautious during the week, though prices showed a mild upward trend. Buyers adopted a selective approach amid mixed signals and margin pressure. UK/EU-origin shredded scrap was workable around $372-375/t CFR Qasim, up from earlier levels, with offers at $378-380/t. UAE-origin shredded saw wider spreads, with bids at $378-380/t and higher offers at $388-390/t. UAE-origin HMS 80:20 was indicated at $360-365/t CFR, with a recent deal heard at $355/t CFR Qasim.
Bangladesh: Imported scrap market in Bangladesh remained selective and subdued throughout the week but price remins firm, as election-related uncertainty and liquidity constraints restricted buying activity. Australian and New Zealand-origin shredded scrap was largely indicated at $365-370/t CFR Chattogram, while HMS 80:20 ranged around $345-350/t CFR and HMS 90:10 at $355-360/t CFR.
PNS continued to command a premium at $370-375/t CFR. Brazilian HMS was workable at $340-345/t CFR, while Japanese H2 and HS prices stayed mostly stable. Limited availability of US bulk cargoes and cautious mill sentiment kept overall trade within narrow ranges.
Japan: H2 scrap prices in Japan strengthened ahead of the Lunar New Year, supported by firm offers and positive market sentiment. BigMint assessed H2 scrap at JPY 45,200/t ($285/t) FOB Tokyo Bay, up JPY 400/t ($3/t) w-o-w. Offers to Vietnam rose by around $5/t to $325-330/t CFR, while bids were heard near $322/t, with tradable levels at $324-325/t.
US: Ferrous scrap export prices remained steady during the week, supported by firm seller sentiment and limited availability amid holiday disruptions and weather-related supply constraints. Sellers maintained optimistic offers near $380/t CFR, keeping tradable HMS 80:20 levels in the range of $375-380/t CFR Turkiye, with most deals clustering around $376-377/t.
UAE: Scrap prices rose slightly w-o-w, with the HMS index up AED 12/t to AED 1,141/t. However, cautious mill buying, comfortable inventories, and VAT-related uncertainty under the RCM mechanism kept market activity limited. Export activity stayed muted due to pending VAT clarity, with EU-origin shredded near $375/t CFR Pakistan.
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