Weekly round-up: Global ferrous scrap market faces further headwinds w-o-w

• Turkiye's prices decline on weak demand, EU oversupply
  
  
• India's imported tags fall amid competitive domestic prices
  
  

This week, global scrap markets saw a downtrend, with prices generally softening due to weak steel demand, economic uncertainty, and better scrap availability. Markets in Turkiye, India, and Pakistan experienced declines, while Vietnam and Taiwan saw slight price increases. Regional issues such as government delays, currency fluctuations, and seasonal slowdowns continued to impact market activity.

Turkiye: Turkiye's imported scrap market saw a continued decline throughout the week, with US-origin HMS (80:20) prices dropping by $4/tonne (t) w-o-w to $340/t CFR, due to low steel demand and oversupply from European recyclers.

The market was further pressured by a weak euro, high scrap availability, and low import prices from China and Commonwealth of Independent States (CIS) countries. Mills focused on clearing inventories, keeping scrap demand subdued.

The market remained bearish throughout this week, with prices expected to stay low into the new year unless demand recovers. Mills reduced their bids to around $330/t CFR by the week's end, as domestic rebar sales and finished steel demand remained sluggish.

India: India's imported scrap market saw subdued activity this week due to weak steel demand, bid-offer mismatches, and competitive domestic scrap prices. Shredded offers from the US and UK/Europe dropped 1% to $386/t CFR from $391/t.

Post-Diwali stagnation in the automotive and construction sectors, along with persistent rains, delayed demand recovery. Domestic scrap remained the preferred choice for steel producers due to quicker delivery and lower risk amid global market uncertainties. Suppliers held firm, but market insiders expect subdued prices to persist through year-end.

Around 4,500-5,000 t of scrap was booked, including 1,000 t of shredded at $377-385/t, HMS (80:20) at $357-372/t, and turning boring at $345/t CFR. However, these volumes were insufficient to indicate a recovery in the imported scrap market.

Pakistan: This week, Pakistan's imported scrap market remained subdued, with shredded prices falling by $2/t to $385/t CFR Qasim. Weak domestic steel demand, cautious buyer sentiment, liquidity issues, and transport disruptions kept bids lower.

Protests in the Punjab and Khyber Pakhtunkhwa (KPK) provinces disrupted trade, while weak steel sales and rising energy costs curtailed mill activity. Restocking deals were insufficient to revive the market, which fluctuated between stable and down amid persistent bid-offer gaps.

Despite this, around 8,000-10,00 t of scrap were booked, with shredded from the UK and Europe priced at $371 and $389/t, respectively.

Bangladesh: This week, Bangladesh's imported scrap market remained sluggish, with shredded prices falling $2/t w-o-w to $387/t CFR Chattogram, while bulk HMS (80:20) from the US fell $3/t from $375/t to $372/t.

The volatility of the taka, financial constraints, and stalled infrastructure projects, combined with weak steel demand, caused mills to operate at only 40-50% of their capacity. As a result, limited activity occurred, and buyers remained hesitant.

South Korea: Steel demand in South Korea was subdued, with mills operating at just 35-40% of their capacity due to seasonal slowdowns. Domestic scrap prices fell, with Light A decreasing to KRW 345,000/t ($247/t), while Heavy A remained steady at KRW 375,000-390,000/t ($269-$279/t). Mills maintained stable bids for HS and shredded while raising Shindachi Bara bids to JPY 50,000/t CFR Korea.

Japan: Japanese H2 scrap export offers dropped to JPY 43,000/t ($287/t) FOB Tokyo Bay this week due to muted demand, especially from Vietnam. Factors such as slow government project disbursements, cash flow issues, and an unfavourable USD-JPY exchange rate contributed to hesitancy among buyers. Domestic prices saw minimal changes, with slight increases in some regions, but overall, the market was stable, though a potential decline is expected due to the exchange rate's impact.

Vietnam: Vietnam's imported scrap market saw slight price increases despite sluggish demand, driven by a persistent bid-offer gap and weak domestic sentiment.

Domestic scrap prices fell due to low demand and cautious stocking by mills, with northern prices at VND 8,700-9,300/kg ($343-$367/t) and southern prices at VND 8,300/kg ($327/t). Weak government investment and project delays continued to dampen buying activity. However, market participants expect a potential rebound with improved construction activity during the dry season.

Taiwan: Imported scrap prices continued to decline, with Japan-origin H2 at $320/t CFR Taiwan. Despite the lower prices, Taiwan's mini-mills are keeping their rebar tags stable, expecting steady downstream demand ahead of the Chinese New Year.

Feng Hsin Steel, Taiwan's largest rebar producer, maintained its rebar list price at TWD 18,400/t ($567/t) exw and local scrap buying price at TWD 9,000/t for transactions this week, following recent reductions.

UAE: The UAE market remained quiet this week, with some mills reducing purchases and lowering prices. HMS (80:20) fell to AED 1,245/t ($339/t), while shredded offers dropped to AED 1,270-1,280/t ($346-349/t). Despite a rebar price hike from Emirates Steel, trade activity was minimal, and the market remains uncertain with limited transactions and cautious sentiment.

US: The ferrous scrap export index dropped by $5/t w-o-w, due to weak demand from key buyers such as Turkiye, where declining steel prices and a stronger US dollar made European scrap more attractive. In Bangladesh, slow domestic rebar demand, coupled with adequate steel and scrap stock levels, led to limited bulk purchases.