Weekly round-up: Global ferrous scrap market witnesses slow trade flow; Turkiye,India exception

The global ferrous scrap market has seen sluggish trade flows in various regions recently. In Turkiye, low-priced trade activity has been observed, while India experienced continuous deals at current offers. On the other hand, Bangladesh and Pakistan's markets have witnessed another weak period with sluggish activities due to weak domestic demand.

In the far East Asian market, Japanese export prices also showed a declining trend. In the South East Asian market, Vietnam's imported ferrous scrap witnessed subdued buying interest on hiked Japanese scrap prices.

Turkiye: Turkish deep-sea imported ferrous scrap prices slumped w-o-w, recent deals were concluded at around $353-355/t from the US and Europe-origin at around $15-18/t lower as compared to the last reported level. However, this week HMS 80:20, and the rebar price spread declined to $225/t as rebar was assessed at $580/t FOB Iskenderun and HMS 80:20 was assessed at $355/t CNF Iskenderun. Turkish mills are actively procuring especially at the $350/t level indicating buyers are reluctant to high offers due to comparatively lower demand in the domestic steel market.

In recent deals: A West Marmara mill booked a US cargo for late August: HMS (80:20) and shredded-bonus scrap at $355/t and $375/t CFR Turkiye. A Mediterranean-based mill booked cargo at $362/t and $387/t CFR (HMS, shredded, and bonus scrap). An East Marmara-based mill booked Baltic-origin cargo at $355/t and $375/t CFR Turkiye (HMS (80:20) and bonus scrap). A Northern Europe seller to Turkiye sold at $354.5/t(HMS(80:20) and US-origin cargo to Aegean-based mill at $355/t CFR (HMS (80:20)). An East Marmara-based mill booked US-origin cargo for August: HMS (80:20) at $354.5/t CFR.

India: In India, scrap buyers remained active in the market, with some transactions recorded throughout the week. Steel producers showed more interest in booking HMS-grade material, while bearish demand for semi-finished and finished steel affected sentiments. Trading activities for sponge iron increased due to an improved demand at lower prices, especially in the eastern and central regions. However, caution prevailed among market players as they awaited a clearer market direction.

UK-origin shredded scrap offers remained stable at $405/t CFR Nhava Sheva towards the weekend. HMS 80:20 scrap segment West Africa-origin was being offered at $395/t at Chennai and $380-385/t at Nhava Sheva, whereas HMS(80:20) offers of Europe origin for Nhava Sheva heard at $390/t CFR.

Pakistan: Pakistan's imported ferrous scrap market experienced a sluggish phase with minimal container bookings. Prices fluctuated due to differences between bids and offers. Some containerised material was booked at the $400-410/t level, but the overall trend suggests a downtrend in the near term, with trade activities potentially picking up if buyers opt for imported material to meet the upcoming demand for finished steel.

Rebar prices in Pakistan dropped by PKR 5,000-7,000/t ($17-$24/t) on exw Punjab due to the weak domestic steel market.

Bangladesh: In Bangladesh, imported Europe-origin shredded offers ranged from $425-430/t. Buyers were eagerly awaiting new bulk cargo bookings in this uncertain market. Domestic steel prices for rebar ranged from BDT 95,000 to 96,000/t ($875-884/t) in Chattogram and BDT 89,000 to 90,000/t ($820-829/t) in Dhaka. Mills were hesitant to further reduce finished steel prices amid a lack of demand from end-users.

US-origin bulk scrap offers remained range-bound at $395-400/t CFR, while Japanese-origin bulk H2 prices remained around $405-410/t CFR with a firm trend after the Kanto tender price.

USA: The Raw Material Data Aggregation Service (RMDAS) ferrous scrap index fell m-o-m in July 2023. The average price of shredded scrap stood at $399/t (down $8/t), and prompt industrial composite scrap was at $460/t (down $23/t). The HMS index was assessed at $331/t (up $4/t).

Japan: Japanese ferrous scrap (H2) export prices continued to decline, with buyers remaining hesitant and sellers resisting lower prices. Prices dropped this week amid the absence of South Korean buyers. As per market participants, sentiments are still bearish with buyers not accepting floated offers.

Vietnam: Vietnam's imported scrap market continued to witness low buying interest, as mills refrained from purchasing imported material due to uncertain market conditions. The country's finished steel market also showed no signs of recovery.

Japanese H2 scrap was offered at approximately $395/t CFR Vietnam, compared to $385/t in the previous week. SteelMint's assessment for Japanese H2 scrap offers moved up slightly to $390-395/t CFR Vietnam this week. Additionally, offers for US-origin HMS (80:20) scrap were at $395-400/t CFR.