The global ferrous scrap market showed mixed sentiments throughout the week, even as Turkish mills booked at a higher price due to shortage of material, whereas Vietnam imported scrap market and Japanese export market remained muted, followed by a price cut by Tokyo Steel this week.
South Asian ferrous scrap prices continued the downtrend, even as Pakistan booked imported scrap amid higher domestic scrap prices, whereas Bangladeshi and Indian buyers are waiting for a clearer price outlook.
- Turkiye’s import prices up: Shortage of material led to an increasing trend in the price of imported scrap in Turkiye. Analysts predict that the Turkish mills will soon book some scrap shipments, since steel manufacturers have observed a little uptick in business activities at higher levels in the finished longs sector.
A total of over 60,000 t of mixed scrap has been booked by the Turkish mills, including HMS 1, HMS (80:20), shredded, PNS, and busheling from Europe and Benelux-origin at $350-54/t price range throughout this week.
SteelMint’s assessment for US-origin HMS 1&2 (80:20) stands at $350/t CFR, up $11/t w-o-w.
- Vietnam market silence persists: As end-user demand remained muted, Vietnamese import scrap prices continued to fall. Prices for imported scrap decreased due to the lack of buyers. However, steelmakers and importers stayed mute and were far from proactive in reserving new slots despite the decline in offers.
Offers for Japanese H2 material were at $368/t CFR levels down by $2/t w-o-w. Japanese scrap prices continued to decline as overseas buyers are showing less interest for the time being.
- Japanese scrap export trade muted: Due to few enquiries and weak demand in both the local and global markets, the Japanese scrap export market remained largely quiet this week, with no significant deals being reported. South Korean mills have delayed their bids for Japanese material for another week. Consequently, it is anticipated that costs would decrease much further.
SteelMint’s assessment for Japanese H2 scrap export prices stands at JPY 43,500/t ($312/t) FOB, unchanged w-o-w.
- Tokyo Steel continues to cut scrap prices: Japan’s major EAF steelmaker, Tokyo Steel, has lowered scrap purchase bids once this week. After the final revision, prices of H2 scrap stand at JPY 46,500/t ($335/t) for delivery to the Tahara plant and Okayama plant followed by JPY 47,000/t ($339/t) for the Utsunomiya works.
- Bangladesh’s import market slow on dull demand: Bangladesh’s imported scrap market remained muted as a result of the slow demand for finished steel. The LC opening limitation prevents market activity from starting up again fully. Buyers and steel producers have chosen to wait and watch till the market is more clearly defined as well as the demand for finished steel has improved.
Containerised offers for UK-origin shredded scrap start at $440-445/t CFR, moving down significantly by $9/t w-o-w. Indicative offers for Japanese-origin bulk H2 were heard at $375/t CFR, down by around $35/t w-o-w.
- Pakistan market sees few transactions: Imported scrap trade improved slightly this week in Pakistan with a couple of deals getting concluded after a long pause. However, due to the gloomy finished steel market, some mills are hesitant to book any new slots. Imported scrap prices have risen w-o-w following the recent deals by Turkish mills.
Approximately 9,000 t of EU-origin shredded was booked at a price of $403-417/t CFR Qasim. Offers for UK/Europe-origin shredded scrap in containers were at $416/t CFR, largely stable a decrease of $1/t w-o-w.
- Indian ferrous scrap buyers on observation mode: Indian scrap buyers are waiting for a better price as prices are going upward following the Turkish deals throughout this week, meanwhile fewer deals were concluded at lower prices than usual, and the recently uplifted export duty has no impact on a recent scenario of Indian ferrous scrap market.
SteelMint’s assessment of Europe-origin shredded scrap offers into India were at $415/t CFR Nhava Sheva, down $3/t w-o-w.
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