- High freights keep sellers’ offers firm across key markets
- Monsoon-led construction lull dampens South Asian buying
Global ferrous scrap markets remained largely stable during the week ended 27 August, with firm supplier offers and higher freight supporting prices. However, weak steel demand, cautious mill buying, monsoon disruptions, and holidays continued to limit trading activity across key markets, especially South Asia.
Turkiye: The deep-sea imported scrap market remained largely stable during the week, with HMS 80:20 holding at around $375/t CFR despite limited trading activity. Fresh deals were reported for Baltic-origin HMS at $369/t CFR and a Netherlands-origin cargo at $370/t CFR, while European and Baltic offers remained firm at $370-374/t and US-origin material at $377-380/t CFR.
Supplier sentiment was supported by firm Turkish domestic scrap prices, elevated freights, and higher replacement costs, limiting willingness to reduce offers. However, weak finished steel demand and mills’ difficulty in raising product prices kept buying interest cautious, restricting significant upside in scrap prices.
Kyrgyzstan: Kyrgyzstan extended its ferrous scrap export ban for another six months, from 19 August 2026 to 18 February 2027, to secure adequate raw material supplies for domestic processors.
India: The imported scrap market showed a firmer trend during the week, supported by rising domestic prices and expectations of stronger post-monsoon demand. However, monsoon disruptions and the Raksha Bandhan holiday kept market activity limited.
Offers remained firm across major origins. European shredded was heard at $410-415/t and HMS at $345-360/t, while Australian HMS was indicated at $325-345/t and shredded at $355-375/t. US-origin shredded offers ranged from $415-420/t.
Fresh deal-making remained limited due to the persistent gap between supplier offers and buyer bids. Chennai and Kandla buyers continued to target lower levels, while suppliers remained reluctant to reduce offers amid firm domestic prices and expectations of stronger restocking demand after the monsoon.
Freight: Container freight rates increased slightly w-o-w. Rates to Chennai rose to around $1,300-1,500 per 20-ft container, while freight to JNPT was around $1,336 per 20-ft container.
Pakistan: Imported shredded scrap market remained subdued during the week, with offers largely stable at $418-420/t CFR Qasim, while workable levels were around $412-415/t and mill bids at $410-412/t. A 1,000-t UK-origin shredded cargo was booked at $415/t CFR Qasim, confirming the lower end of the workable range.
Weak downstream steel demand, low mill operating rates and continued monsoon disruptions kept procurement limited to immediate requirements. Higher freight costs supported supplier offers, while the Eid holiday further slowed market activity towards the end of the week, restricting fresh deals.
Bangladesh: The imported scrap market remained stable during the week, supported by a few fresh bookings, including Philippines-origin HMS 90:10 at $378/t CFR Chattogram, Singapore-origin PNS at $415/t, and Philippines-origin HMS 1 at $375/t. US West Coast bulk HMS 80:20 was indicated at $378-380/t CFR, while Australian HMS was around $380/t.
However, cautious mill buying and limited vessel availability constrained import activity, while Japanese H2 at $384-385/t was considered relatively expensive.
Japan: H2 export scrap prices remained stable at JPY 48,300/t ($303/t) FOB Tokyo Bay. Meanwhile, Tokyo Steel cut its H2 scrap purchase price by JPY 500/t at its Tahara plant on 26 August, bringing prices to JPY 47,000-49,500/t DAP. Weak steel demand, cautious buying in Vietnam and expected billet arrivals limited scrap buying interest, prompting the fifth H2 price cut in August.
UAE: Processed HMS 80:20 at AED 1,006/t ($274/t) DAP Abu Dhabi, up AED 10/t w-o-w, supported by firm replacement costs and steady supplier offers despite weak steel demand. Mills continued to buy mainly for immediate requirements, while suppliers remained reluctant to reduce prices. Meanwhile, Emirates Steel rolled over its September rebar benchmark offer at AED 2,921/t ($795/t) exw.
Leave a Reply