- Turkiye quiet amid holidays, tepid rebar demand
- India sluggish on weak steel tags, local scrap use
Global ferrous scrap prices showed a slight decline this week amid holiday-driven lulls, weak steel demand, and cautious buying across key Asian markets. Shredded prices in South Asia fell, while Turkiye, Japan, and Vietnam saw limited activity due to subdued demand and tight supply dynamics. However, Japanese H2 export offers edged up amid robust participation in this month’s Kanto tender.
Turkiye: The imported ferrous scrap market remained largely quiet throughout the week due to the Eid al-Adha holidays, with mills slow to return to the market. US-origin HMS 80:20 was assessed at $338/t CFR by the week’s end, down 1% from $341/t the previous week. Initial offers hovered at around $340/t CFR, but limited trades were confirmed, with some Baltic deals heard at $337/t and EU-origin cargoes near $330/t CFR.
Buyers remained cautious amid weak rebar demand and stagnant prices at $545/t FOB. Mills resisted paying above $340/t CFR, while US and EU sellers held firm on offers due to tight supply, high collection costs, and currency shifts. Recyclers saw little reason to reduce prices without major changes in shipping or dollar strength.
With July-shipment cargoes still pending, both buyers and sellers remained in a stand-off. Market participants adopted a wait-and-watch approach, seeking clarity on near-term steel demand and freight availability before resuming active trade.
India: The imported scrap market remained sluggish throughout the week due to falling steel prices, monsoon disruptions, and the availability of cheaper domestic alternatives. UK shredded fell by 1% w-o-w to $361/t CFR, with most tradable levels at $355-360/t. HMS 80:20 offers from West Africa and Brazil drew limited interest, as buyers held bids below $340/t CFR.
Weak steel demand, especially in the rebar segment with prices at multi-year lows, kept sentiment muted. Mills preferred domestic sponge iron, DRI, and competitively priced Iranian HBI due to better availability. Seasonal construction slowdown and weak auto demand added to the cautious mood. Even distressed and high-grade cargoes saw limited interest. With expectations of further softening, most buyers stayed on the sidelines.
Last week, an estimated 3,500-4,500 t of imported scrap were booked by India. This included approximately 1,500-2,000 t of HMS 80:20 and 2,000-2,500 t of shredded.
Pakistan: The imported scrap market remained largely subdued throughout the week due to Eid holidays, limited mill operations, and weak finished steel demand, with UK shredded averaging $371/t CFR, down 1% from $375/t the previous week. Containerised shredded from the UK was heard at $370-375/t CFR Port Qasim early in the week but fell slightly to $365-370/t by the week’s end.
Trading remained limited, as most mills stayed inactive or operated minimally due to high inventories and weak domestic demand. Some shipments were booked at competitive rates, especially where sellers avoided the new import surcharge. Attention is now on the post-Eid period and the removal of the 2% customs duty, though recovery depends on improved mill operations and demand.
Bangladesh: The imported scrap market remained largely inactive throughout the week, primarily due to Eid holidays, ongoing challenges related to securing letters of credit (LCs), and weak buying interest from mills facing tight liquidity. Shredded from the UK averaged $374/t CFR Chattogram, down 1% from $376/t in the previous week. Offers for containerised shredded were consistently heard at $375-378/t CFR, while HMS 80:20 was quoted at $355-360/t, but no major deals materialised.
The holiday-driven lull, combined with financial stress and delayed LCs, kept most mills on the sidelines. However, in the bulk segment, a major steelmaker booked Japanese Kanto cargo at $345-350/t CFR, signalling some underlying demand. Meanwhile, ship recycling activity also slowed, with only a few yards compliant with the Hong Kong Convention (HKC) operating, further reflecting the market’s limited appetite.
Japan: The H2 scrap export market saw a slight uptick this week, driven by a weaker yen and strong participation in the June Kanto tender, which awarded a record 20,000-t cargo at JPY 42,267/t ($294/t) FAS. BigMint’s weekly export offers rose to JPY 41,335/t ($288/t) FOB Tokyo Bay.
However, domestic prices stayed under pressure, averaging JPY 38,000/t ($264/t), with Kansai posting the steepest decline. Sentiment remained cautious amid muted global demand and slow regional steel activity.
Tokyo Steel set JPY 41,000/t ($285/t) for its new Tokyo Bay yard, boosting Kanto scrap collection.
Vietnam: The imported scrap market remained quiet, as buyers stayed cautious amid oversupply, weak demand, and competitive Chinese billet prices. Japanese H2 offers stood at $320-330/t CFR, with bids near $320/t. Seasonal slowdowns and Ghost Month concerns further dampened sentiment, keeping overall activity subdued.
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