- Weak steel demand keeps India’s scrap trade slow
- Pakistan mills inactive amid bearish sentiment
Global ferrous scrap prices were range-bound w-o-w, with limited trade volumes observed, as mills across key markets such as Turkiye, India, and Pakistan remained cautious. Seasonal slowdown, weak steel demand, and bid-offer mismatches kept sentiment muted despite firm offers.
Turkiye: Turkiye’s imported ferrous scrap market remained cautious yet firm throughout the week, with US-origin HMS 80:20 assessed at $342/t CFR, up 1% from last week’s $338/t. Despite subdued rebar and HRC sales, sellers maintained firm offers, supported by tight scrap availability and a stronger euro limiting European exporters’ price flexibility.
Buyers pushed back against offers above $340/t CFR, citing poor steel margins and weak domestic and export demand. Some mills explored alternative billet options from Asia as a cost-saving strategy. The lack of urgency in procurement kept deal activity minimal despite the looming need for July shipments.
Offers from the US hovered at $348-350/t CFR, while EU-origin HMS was quoted around $340-345/t. Recyclers remained firm on pricing due to high collection costs and limited summer supply. Mills are expected to stay cautious unless finished steel orders improve or scrap prices decline.
India: India’s imported ferrous scrap market remained largely stable over the week, with UK-origin shredded assessed at $362/t CFR Nhava Sheva, up slightly from $361/t last week. Overall sentiment stayed cautious amid weak end-user steel demand, seasonal slowdown, and a persistent bid-offer mismatch. Mills are expected to remain cautious unless either scrap prices soften or finished steel demand shows clear signs of improvement.
Indicative offers for HMS 80:20 were heard in the $338-345/t CFR range, while buyers stayed lower around $335-340/t. Shredded scrap from the UK and Europe hovered at $360-362/t CFR, with limited firm offers from the US, reflecting broader market hesitancy.
Total imported scrap volumes into India last week were captured at around 4,000-5,000 t, including HMS 1, HMS 80:20, busheling, bundle scrap, and PNS.
Pakistan: Pakistan’s imported ferrous scrap market stayed muted amid weak finished steel sales and mills operating at just 30-35% capacity. Buyer interest remained limited as local billet and rebar prices showed no significant recovery, keeping sentiment bearish.
Offers for EU-origin shredded hovered at around $372-375/t CFR Qasim, while UAE shredded was quoted higher at $380-385/t. Despite firm offers, mills refrained from booking, expecting either price corrections or improved clarity on steel demand.
Geopolitical uncertainty and cautious procurement also contributed to the slowdown. Overall, UK-origin shredded averaged $375/t CFR, up 1% from last week’s $371/t, but trades were sparse due to low buying appetite.
Bangladesh: Bangladesh’s imported scrap market began the week on a quiet note due to Eid holidays, persistent letter of credit (LC) constraints, and tight liquidity. Mills stayed mostly on the sidelines, with minimal interest in both bulk and containerised cargoes.
As the week progressed, sentiment turned moderately positive, with most mills resuming operations. Some cautiously resumed procurement, reflecting early signs of recovery in steel demand. However, major bulk bookings were still limited, as mills remained wary of price volatility and regional uncertainties.
Containerised Australian HMS 80:20 was largely offered around $350-352/t CFR, with shredded quoted at $365-366/t CFR. Overall, shredded prices were assessed at $374/t CFR Chattogram, stable w-o-w.
Japan: The H2 scrap export market edged up slightly by JPY 135/t ($1/t) to JPY 41,500/t ($284/t) this week, as a weaker yen boosted price competitiveness. However, further gains remained limited due to a seasonal slowdown, weak overseas demand, and buyers increasingly preferring heavier scrap grades over H2
Vietnam: The imported scrap market saw a slight decline amid weak mill interest and softening Japanese and US offers. H2 scrap remained stable at $325/t CFR, but bids were closer to $320/t. Mills showed limited buying appetite, with demand expected to slow further due to the rainy season. Sellers faced resistance as buyers preferred heavier grades.
South Korea: Ferrous scrap stocks rose 2.5% w-o-w to 729,000 t, ending a five-week decline amid improved import arrivals. However, weak steel demand and low mill utilisation kept deep-sea scrap activity subdued, with traders expecting quiet conditions to persist.
UAE: Domestic scrap market softened as mills delayed bookings amid regional tensions, pushing BigMint’s HMS index down by AED 18/t to AED 1,206/t ($328/t). Processed HMS held at AED 1,200-1,210/t DAP Abu Dhabi. Export offers for shredded rose to $385/t CFR Qasim, but trade remained thin. HDG coil prices stayed stable, with cautious sentiment prevailing.
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