Weekly round-up: Global ferrous scrap market stable w-o-w, South Asian demand weak

The global ferrous scrap market showed overall stability last week, experiencing only minor fluctuations. In South Asia, Indian buyers remained cautious due to volatility in the domestic market and a slowdown attributed to regional festivities. Meanwhile, markets in Pakistan and Bangladesh were subdued as they observed Eid and related holidays.

In Japan, export offers for H2 scrap saw a modest uptick, partly influenced by the depreciation of the JPY against the USD and recent increases in scrap export tenders in the Kanto region.

Turkiye: This week, Turkish imported ferrous scrap market activities remained slow, but a few deals emerged early in the week. A Mediterranean mill secured HMS (90:10) from a US supplier at $387/t CFR and HMS (80:20) from a UK exporter at $380/t CFR. European recyclers noted a slight dip in collection costs to Euro 315/t delivered to docks.

Steelmakers remained subdued amid Eid festivities, with trade anticipated to pick up next week. BigMint's assessment for US-origin HMS (80:20) bulk scrap was at $384/t CFR, while US East Coast bulk HMS (80:20) held steady at $365/t FOB. Rebar assessment stood at $595/t FOB Iskenderun, with the scrap-to-rebar spread widening to $210-211/t.

Turkiye's Ministry of Commerce swiftly imposed export restrictions to Israel amid the Gaza conflict. This move will affect Turkish steel exports, as Israel remains the key import market.

India: This week in India, the demand for imported scrap remained steady as buyers approached the market cautiously amidst domestic market fluctuations. On a weekly average basis, shredded scrap offers from Europe saw a slight increase, rising by $3/t to $421/t CFR compared to $418/t CFR in the previous week. Similarly, HMS (80:20) offers also climbed to $395/t CFR, up by $3/t from the previous week's $392/t CFR.

In noteworthy transactions, approximately 500 t of turning boring scrap was secured from Europe at $360/t CFR, followed by 2,000 t of handloaded HMS scraps from Kuwait at $415/t CFR, and around 500 t of shredded scrap from the US at $411/t CFR.

As per market participants, a primary mill procured around 15,000 t of CRC scraps from various origins including the UK and Malaysia, at approximately $437/t CFR Vizag.

Pakistan and Bangladesh: Throughout the week, market activity in Pakistan and Bangladesh was minimal due to the observance of Eid and associated holidays, with many buyers absent since the previous week-end. Additionally, several mills had already announced maintenance shutdowns due to a subdued finished steel market and considering the off-season surrounding Eid.

On average, for the week, shredded scrap offers from Europe stood at $426/t CFR Qasim, marking a $2/t increase compared to $424/t CFR from the previous week. In Bangladesh, shredded scrap offers averaged $421/t CFR Chattogram, up $2/t from $419/t CFR a week ago, while HMS (80:20) offers remained steady at $403/t CFR Chattogram w-o-w.

Japan: This week, Japanese H2 scrap export offers saw a modest increase of JPY 200/t ($1.3/t) due to the JPY's depreciation against the USD and a rise in the recent Kanto scrap export tender. According to BigMint's weekly assessment, the H2 scrap export offer reached JPY 50,800/t ($331/t) FOB Tokyo Bay. However, demand from major importers such as South Korea, Vietnam, and Taiwan remained subdued.

Approximately 15,000 t of H2 scrap were sold at Japan's Kanto export tender on 10 April at JPY 51,087/t ($335/t) FAS, indicating a slight increase of JPY 987/t ($7/t) compared to the previous month. The FOB price is estimated to range between JPY 52,000-52,500/t ($341-344/t), equivalent to INR 28,713/t (FOB). It is anticipated that the shipment was secured by a Bangladeshi mill, resulting in an estimated CFR Chattogram price of $390-395/t.

South Korea: The top South Korean steel producers witnessed a significant drop in their combined scrap inventory, the first in a while. Totalling 0.87 mnt, it is down over 3% from the previous week, with the central region's inventory at 489,000 t (a 1.8% decrease) and the southern region's at 379,000 t (a 5.4% decrease).

Moreover, major mills decided to cut scrap procurement prices. SeAH Changwon Special Steel will reduce iron scrap purchase prices by KRW 10,000/t from 15 April, followed by Hyundai Steel's Pohang Works and Korea Special Steel. Additionally, Korea Steel announced a KRW 10,000/t price cut for all scrap grades, effective 16 April.

China: Shagang Steel has recently announced an upward adjustment in the purchasing rates for ferrous scrap across grades, with effect from 12 April. The updated rates show an increase of RMB 50/t ($7/t).