Weekly round-up: Global ferrous scrap offers edge up; buyers cautious ahead of holidays

• Japan's export market stable amid cautious sentiment
  
  
• South Asia, Turkiye witness slow trade before holidays
  
  

This week, global ferrous scrap markets witnessed an uptrend in prices with low to moderate trade seen. Prices in India, Pakistan, and Bangladesh increased despite the fact that the market remained subdued amid limited buying interest. Turkish buyers remain cautious amid weaker rebar demand seen from the second half of the week.

UAE saw a price rise with stronger demand after hitting a 10-month low last week.

In East Asia, South Korea's imports surged, while Vietnam's demand remained weak. Japan's export prices were stable and the US saw slight increases despite low deep-sea interest.

Turkiye: Turkiye's imported scrap market showed signs of an uptrend. Prices for US-origin HMS (80:20) rose to $351/t CFR, up 1% from $347/t last week due to mills restocking inventories, with European sellers offering higher prices for EU-origin scrap. EU-origin HMS (80:20) traded at around $340-349/t CFR, but sellers remained cautious, anticipating further price increases.

Buyers in Turkiye were hesitant due to weakening domestic rebar sales and slower procurement. Despite higher price targets from US-origin sellers, Turkish mills preferred European-origin material, where prices were lower by $4-5/t.

Mills held off on purchases, expecting potential price corrections. Sellers maintained firm offers with expectations of busier weeks post holidays.

India: India's imported scrap prices rose despite weak demand and price fluctuations. Sellers from Australia, the US, and the UK/Europe held firm, but buyers remained cautious due to high inventory and uncertainty. Indian buyers focused on nearshore shipments, delaying purchases in hopes of better market conditions in the coming months.

European scrap offers were higher due to recent Turkish deals, but Indian buyers found them too expensive, especially with the upcoming winter holidays.

By week's end, the market slowed further for the holidays, with many delaying imports until mid-January, anticipating better conditions.

Approximately 8,000-9,000 t of scrap were booked, including 1,500-2,000 t of shredded scrap from Australia and the UK at $380-388/t, HMS (80:20), PNS, Busheling, and HMS (60:40) scrap from Australia, UK, Middle East, and Caribbean at a price $325-392/t.

Pakistan: Pakistan's imported scrap market saw a slight 1% increase in shredded scrap prices, rising from $388/t to $393/t CFR Qasim, despite fewer offers as suppliers closed for the holidays. The State Bank's rate cut boosted economic hopes, but scrap demand remained uncertain. Inquiries for shredded scrap rose, with prices at $388-395/t, but buyers sought lower prices for larger quantities. Demand stayed slow as buyers awaited clearer market trends.

Bangladesh: The imported scrap market in Bangladesh remained slow this week, with a slight rise in shredded prices to $394/t. Buyers remained cautious due to weak demand, LC issues, and high steel inventory.

Mills operated at reduced capacity, keeping market activity low.

Despite this, regular bookings of around 4,500-5,000 t of scrap were heard with shredded PNS, HMS (90:10), and HMS mix from the UAE, Chile, and EU priced at $360-400/t, respectively.

UAE: The domestic ferrous scrap index rebounded, rising by AED 28/t ($8/t) amid improved demand before year-end holidays. HMS (80:20) reached AED 1,220-1,223/t ($332-333/t), shredded at AED 1,300-1,320/t ($353-359/t), with workable levels for HMS at AED 1,215-1,220/t ($330-332/t).

Japan: Japanese H2 scrap export offers stayed stable at JPY 43,400/t ($277/t), with domestic prices holding steady at JPY 41,000-42,000/t. Limited market activity due to a bid-offer gap and few seaborne offers. Tokyo Steel reduced scrap prices at Tahara and Utsunomiya plants by JPY 500/t ($3/t) from 20 Dec.

Vietnam: Imported scrap market experienced weak demand this week due to pricing uncertainty, with both buyers and sellers staying cautious. H2 prices remained stable, with mills accepting offers at $330-335/t CFR, while bids were lower at $320-325/t CFR, indicating a significant bid-offer gap.

Scrap prices were pressured by low steel sales, production cuts, and weak demand. Traders reported stockists were hesitant to buy rebar and scrap, aiming to avoid losses from low prices, resulting in reduced inventory levels.

South Korea: South Korea's imported scrap market surged this week, with total volumes reaching 65,980 t. Special steel plate manufacturers, including Hyundai Steel, SeAH, Besteel, Daehan Steel, and POSCO, accounted for the majority of the imports. POSCO recorded the highest inflow with 33,823 t.

The rise in imports contributed to a slight increase in the country's ferrous scrap inventory, which reached 758,000 t. While inventory levels grew, low demand and production halts led some mills to stop accepting scrap.

Taiwan: Feng Hsin Steel, Taiwan's largest rebar producer, cut its rebar list prices and local scrap buying prices by TWD 200/t ($6/t) for 16-20 December. Prices of US-sourced HMS dropped to $290/t CFR Taiwan, the lowest since November 2020, while Japanese-origin H2 remained steady.