Weekly round up: Global ferrous scrap market shows positive sign, except Japan

The global ferrous scrap market picked up with Turkiye buyers turning active in restocking on hopes of a recovery in finished steel demand. Imported scrap offers inched up in Pakistan and Bangladesh, however, market sentiments remained negative. Indian mills, on the other hand, continued booking bulk cargoes on cost competitiveness compared to container scrap.

Meanwhile, Japan was the only country that saw a downward price trend and dull sentiments in the week. Export offers from Japanese suppliers continued to decline. However, trade did not improve even at low offers. Furthermore, Tokyo Steel trimmed scrap buy prices by $3/t except Kyushu works.

Highlights-

• Turkiye's imported scrap prices up on active buying: Imported scrap prices kept rising as Turkish buyers were active in bulk scrap bookings from the US and Europe. Deep-sea import scrap prices increased recently despite Turkiye's relatively low finished steel demand. SteelMint's assessment for US-origin HMS 1&2 (80:20) stood at $365-370/t CFR, up by $20/t w-o-w.
  
  
• Japan's export prices down amid bearish sentiments: Japanese scrap trade activities were mostly stable this week, with no deals concluded. Prominent overseas scrap buyers like South Korea, Vietnam, and Taiwan remained on sidelines. SteelMint's assessment of Japanese H2 scrap export prices stood at JPY 47,500/t ($328/t) FOB, down by JPY 500/t ($3/t) w-o-w.
  
  
• Tokyo Steel trims scrap buy prices by $3/t: Japan's major EAF steelmaker, Tokyo Steel, trimmed scrap buying prices this week. The company lowered bids for H2 scrap by JPY 500/t ($3/t) for four of its plants except for Kyushu works. Post-revision, prices for H2 stood at JPY 49,000/t ($339/t) delivered to the Tahara plant, while those for Utsunomiya were at JPY 50,000/t ($346/t).
  
  
• Vietnam's imported scrap market slows down: Imported scrap market in Vietnam saw few deals concluded in containers. Demand from the domestic and overseas finished steel buyers weakened. Also due to attractive prices, scrap buyers and steel mills booked domestic material. Indicative offers for bulk Japanese H2 were heard at $397/t CFR levels, down $8/t w-o-w.
  
  
• Bangladesh's imported scrap market less active: Limited trade was seen in the imported bulk and container scrap market in Bangladesh. It may be noted that logistics problems in the country increased freight costs, causing supply chain disruptions. On the other hand, scrap suppliers in the global market offered at higher levels as both Indian and Turkish buyers were active. However, Bangladesh mills found these levels too high, resulting in limited deals concluded. SteelMint's assessment of shredded scrap from the UK is currently $473/t CFR largely stable w-o-w.
  
  

• Pakistan's imported scrap prices inch up: Imported scrap offers increased w-o-w despite weak demand. Some mills continued to make bookings in small parcels. A few traders offered at around $450-455/t levels. However, offers were down by around $40/t m-o-m. SteelMint's price assessment of shredded scrap in Pakistan stood at $453/t CFR Qasim, an increase of $9/t w-o-w.
  
  

• Indian mills continue booking bulk scrap: India's imported scrap buyers actively procured bulk scrap over containers due to cost-competitiveness. Market participants informed that around four bulk vessels arrived at Kandla and Chennai ports this week. Due to Indian buyers booking bulk scrap vessels, Turkish buyers became cautious and purchased the raw material at higher prices to restock before the winters. The market heard a buzz that one bulk shipment will arrive at Kandla Port in the next week. SteelMint's assessment of shredded scrap in India stood at $453/t CFR Nhava Sheva, largely stable with $2/t down w-o-w.