- Turkish demand steady; mills restocking ahead of Eid
- India buyers cautious amid weak demand
Global ferrous scrap prices showed moderate stability with slight regional variations. Turkiye and India remained steady amid cautious buying, while Pakistan faced pressure from high freight costs. Vietnam and the UAE saw mild price changes supported by steady demand, and US export prices dipped slightly amid balanced supply and selective restocking.
Turkiye: Imported scrap market remained stable throughout the week, with US-origin HMS 80:20 holding at $347/t CFR. Limited trades were concluded as mills showed caution amid slow finished steel sales and weak rebar demand.
Mills faced weak domestic rebar demand and softening finished steel prices, which restrained aggressive restocking. Despite firm offer levels from suppliers, buyers showed resistance due to concerns about thin margins and an inability to pass on higher input costs.
Rising HMS collection costs in Europe and a stronger euro signaled potential upward pressure, yet overall sentiment stayed muted with no clear demand boost in sight.
India: India’s imported scrap market remained largely steady but subdued throughout the week, as buyers resisted higher offers due to weak finished steel demand and sufficient availability of lower-cost alternatives like sponge iron and pellets. UK/Europe-origin shredded scrap prices stood at $367/t CFR Nhava Sheva, reflecting a marginal 1% drop from last week’s $369/t, with bids mostly at $360-365/t and limited concluded trades.
Pakistan-bound scrap cargoes were diverted to India due to emergency shipping surcharges, adding short-term supply pressure. However, Indian mills stayed cautious, focusing on inventory control and weak steel margins. HMS 80:20 offers held at $345-355/t CFR, but mills were only interested at lower bid levels.
Approximately 44,000 t of imported scrap were booked in India this week, including a 31,000 t US bulk cargo at Kandla with shredded, HMS 80:20, and bonus. Container deals covered HMS 80:20, shredded, and mixed grades like PNS, busheling, and bundles.
Pakistan: Imported scrap market remained under pressure this week due to high freight costs, weak steel demand, and tight margins. An emergency surcharge of $300-800 per container raised landed prices, discouraging fresh bookings. Bids for shredded scrap stayed around $380-383/t CFR Port Qasim, with some sellers diverting cargoes to India. Shredded prices rose slightly w-o-w by 2% to $385/t from $377/t.
Domestically, scrap prices held steady at PKR 138,000-140,000/t ($496-504/t). Rebar prices increased by PKR 5,000/t due to higher input costs and rupee depreciation, reaching PKR 237,000-239,000/t, with lower-rebate material at PKR 234,000-236,000/t.
Bangladesh: Imported scrap market remained sluggish this week amid weak steel demand, tight liquidity, and seasonal slowdown due to the monsoon and upcoming Eid holidays. Mills focused on inventory management as trade activity stayed limited by a persistent bid-offer gap. Deals for Australian HMS 80:20 were heard at $355/t, while Japanese H2 bulk was offered at $360/t, US HMS at $373/t, and Hong Kong-origin PNS at $390-395/t. Shredded prices remained stable w-o-w at $377/t CFR Chattogram.
Domestic scrap prices stood at BDT 53,000-55,000/t ($435-468/t), while rebar was priced at BDT 80,000-82,000/t ($657-698/t) in Dhaka and BDT 83,000-86,000/t ($707-724/t) in Chattogram. Further slowdown is expected due to liquidity concerns and weather-related disruptions.
Japan: H2 scrap export prices declined slightly this week, with BigMint assessing H2 at JPY 41,200/t ($289/t) FOB Tokyo Bay, down JPY 100/t from the previous week. This drop was driven by subdued interest from major overseas buyers.
Tokyo Steel reduced scrap procurement prices by up to JPY 500/t at its Kyushu plant, effective 21 May, lowering rates to JPY 40,500/t. Prices at other plants remained unchanged, reflecting cautious market sentiment.
Vietnam: Imported scrap market rose $2/t, with Japanese H2 assessed at $325/t CFR, amid easing US-China tensions. Buyers stayed cautious due to weak steel demand. A fire at Hoa Phat’s mill caused a brief billet shortage, while domestic scrap prices diverged regionally. HRC duties on China were largely upheld.
UAE: Domestic scrap index dipped slightly to AED 1,223/t ($333/t) amid moderate activity and high inventories, with buyers holding off on fresh bookings. Exporters remained active, driven by steady demand from India and Pakistan despite rising freight costs. A moderate price rise is expected soon, supported by strong overseas demand and firm trends in Turkiye.
US: BigMint’s US ferrous scrap export index dipped $2/t w-o-w, with moderate demand from Turkiye, Bangladesh, and Vietnam. Turkish mills remained cautious but accepted slightly higher prices due to low inventories and Eid restocking. Market sentiment stayed cautious amid uncertainties, while exporters held firm prices, supporting near-term values.
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