Weekly round-up: Global ferrous scrap market on slow lane as mixed sentiments prevail

The global ferrous scrap market witnessed a week of mixed sentiments as major participants in South Asia remained cautious, waiting for better price clarity and concessions for booking.

Turkiye's market saw slow-paced bookings and a slight decrease in prices due to recent deals concluded at lower prices. Japan's Tokyo Steel raised its purchase price, followed by a rise in South Korea's Hyundai Steel's scrap purchase bid. China's Shagang Steel also increased its bid price this week.

Turkiye: Turkish imported scrap prices displayed volatility, with moderate deals reported from the UK/Europe, the US, and the Baltic. However, market participants anticipate limited activity until the country's central bank announces its interest rates on 22 June.

SteelMint's daily assessment for HMS 1&2 (80:20) from the US stood at $385/t CFR Turkiye, down $4/t w-o-w.

India: The imported scrap market witnessed a slowdown towards the weekend. However, small-parcel bookings were recorded throughout the week as buyers sought to understand the market direction amidst instability.

Approximately 12,000 t of mixed material, including shredded, PNS, and HMS (80:20) from Europe, Singapore, and Yemen, were booked within a price range of $415-448/t on a CFR basis.

However, domestic market sentiments have yet to support the global market, as imported scrap offers remained at $430-435/t CFR levels, and buyers sought further discounts for fresh deals.

Pakistan: The imported ferrous scrap market in Pakistan remained subdued due to ongoing political uncertainty and economic fluctuations. Trade activities were sluggish, with minimal bookings of around 5,000 t of shredded and PNS reported. Deals were finalised in the range of $434-440/t.

Current offers for UK-origin shredded scrap stood at $435/t CFR Qasim, down by $5/t w-o-w.

Bangladesh: Bangladesh's imported scrap market also experienced a slow week, with lower demand for UK-origin material following the Kanto tender in June. The domestic steel market remained sluggish, resulting in infrequent buying and low market sentiments due to liquidity issues.

Some deals for PNS and HMS from Australia and Hong Kong were concluded, indicating improved demand.

Fresh offers in the market included US-origin bulk scrap, slightly increasing to $420-425/t CFR, and Japanese-origin H2 material priced at around $415-420/t CFR.

Japan: Export prices of H2 scrap saw a w-o-w increase due to improved sentiment following the Kanto Tetsugen tender. However, limited shipments were observed due to sluggish demand in key export destinations such as Vietnam and South Korea.

SteelMint's assessment for Japanese H2 scrap stood at JPY 49,500/t ($351/t) FOB, up JPY 1,000/t ($7/t) w-o-w.

Tokyo Steel: Tokyo Steel, a major player in Japan, increased its domestic ferrous scrap procurement prices for its Tahara and Okayama plants by JPY 1,000/t ($7/t) and JPY 1,500/t ($11/t), respectively. Prices for the Utsunomiya plant remained unchanged. Post-revision, H2 scrap prices delivered to all three plants stood at JPY 48,500/t ($344/t).

China: China's Shagang Steel increased its ferrous scrap purchase prices by RMB 50/t ($7/t) for all grades, marking the fourth price hike since the last reduction and the third hike this month.

South Korea: South Korea's Hyundai Steel also raised its bid prices for imported Japanese scrap, signalling the first price increase after six successive price cuts since 18 March. Bids for different grades were adjusted accordingly.

Vietnam: Vietnam's imported ferrous scrap prices experienced a slight increase due to the recent hike in Japanese Kanto scrap export tender bid prices. However, Vietnamese mills faced challenges in keeping up with high Japanese scrap prices due to low scrap generation in Japan and sellers refusing to offer discounts.

Offers for US-origin bulk HMS 1&2 (80:20) increased to $410/t CFR Vietnam, while Japan-origin H2 bulk scrap saw a significant hike of around $390-395/t CFR, up $25-30/t w-o-w.