Weekly round-up: Global ferrous scrap offers remain largely stable amid limited market activity

• Turkish prices decline on weak demand and holiday slowdown
  
  
• UAE prices drop amid yard maintenance activities, slow trades
  
  

Last week, global ferrous scrap markets witnessed a largely stable price trend, with limited trading activity across key markets. Prices saw slight declines due to the holiday season, weak demand, and economic uncertainties. Mills were cautious, postponing bookings, while domestic scrap prices held steady in several markets. The market remained subdued, with limited expectations of a recovery until the New Year.

Turkiye: Last week, Turkiye's imported scrap market remained sluggish, with limited trading activity and a slight decline in prices. US-origin bulk HMS (80:20) was assessed at $349/t CFR, falling by 1% from $351/t the previous week. Mills continued to press for lower prices, while exporters remained firm on their targets, leading to a stand-off. The holiday season and weak rebar demand further contributed to the lack of momentum in the market.

As the last working week of the year began, mills postponed new bookings, and collectors were on holiday, resulting in no new deals. The bid-offer spread widened, with mills aiming for prices below $350/t CFR, while sellers remained firm. Market sentiment was cautious, with both sides showing little urgency, and little change is expected in the short term.

India: Last week, the imported scrap market saw moderate demand with prices declining slightly. Shredded scrap from the UK dropped 1% from $390/t CFR last week to $385/t CFR. The holiday period witnessed fewer fresh offers and limited supplier activity; many suppliers are fully booked for January shipments and have paused operations temporarily.

Inquiries for shredded scrap and HMS (80:20) were heard despite a subdued market. UK HMS (80:20) stayed at $365/t CFR, with offers from West Africa and Latin America ranging between $360-370/t CFR. The holiday season and a slow steel market kept buyers cautious.

However, the market was quieter due to the holidays, with limited supply and stable prices expected to continue into the New Year. Prices may rise slightly once the holiday period ends and supply resumes.

Approximately 12,500-13,500 t of scrap were booked, including 5,000-6,000 t of shredded scrap from Australia and the US at $382-385/t. Additionally, 5,000-5,500 t of HMS (80:20) were booked from Brazil, West Africa, and Chile at $360-375/t. There was also a mix of HMS and LMS, as well as handloaded HMS and HMS1 sourced from Yemen and South America, at $365-385/t.

Pakistan: Pakistan's imported scrap market was slow last week, with limited trading as participants entered into holiday mode. UK shredded scrap prices held steady at $393/t CFR Qasim. Domestic demand remained weak, with scrap prices around PKR 137,000-140,000/t and rebar at PKR 240,000-245,000/t.

Despite steady offers for UK shredded scrap and UAE HMS, trading remained low. Mills operated at reduced capacities, and forced sales in the rebar sector indicated weak demand. Overall, market sentiment remained bearish due to the year-end financial closures and seasonal slowdown.

The market is expected to remain quiet with limited deals as the holiday period continues, with a possible recovery once liquidity improves after the festive season.

Bangladesh: Last week, Bangladesh's imported scrap market was subdued due to LC delays, political unrest, and rising dollar rates. Shredded scrap from the UK/Europe remained stable at $393/t CFR Chattogram, while other grades were priced between $375-395/t CFR. Mills preferred cheaper ship-breaking scrap, and bulk imports were led by major players with better LC conditions.

Rebar prices rose modestly to BDT 78,000-82,000/t, but market sentiment remained bearish due to liquidity issues and project delays. Domestic scrap prices held steady at BDT 50,000/t for HMS and BDT 52,000/t for PNS, with tight supply limiting activity.

UAE: The UAE's domestic ferrous scrap prices dropped by AED 15/t ($4/t) w-o-w due to yard maintenance and sufficient year-end stock. HMS (80:20) processed scrap fell to AED 1,200-1,210/t ($327-329/t), with limited trade activity and weak demand.

Japan: H2 scrap export offers held steady at JPY 43,400/t ($275/t) FOB Tokyo Bay, as weak demand and year-end slowdowns kept trading muted. Vietnamese mills and other buyers avoided restocking due to cautious market sentiment and the approaching Lunar New Year holiday.

Despite a weaker JPY improved export competitiveness, the ongoing bid-offer gap and sluggish procurement activity weighed on prices. In Japan, the average H2 scrap price fell by JPY 300/t ($1.90/t) to JPY 37,900/t ($240/t), with regional prices dropping in Kanto, Chubu, and Kansai.

Vietnam: The imported scrap market remained quiet, with H2 offers stable at $330-335/t CFR and bids below $320/t. Mills showed cautious procurement strategies due to weak demand and year-end slowdowns, avoiding significant restocking.

Domestic scrap prices held steady, ranging from VND 8,550-9,100/t in the north to VND 7,900/t in the south. Mills operated at reduced capacities of 40-50%, reflecting economic instability and concerns over 2025, with limited activity expected until after the Lunar New Year.

South Korea: South Korea's imported scrap market remained steady, with Japanese shredded bids at $305-$311/t CFR and domestic scrap prices at $228/t for Light A and $249/t for Heavy A. The market stagnated due to year-end inventory adjustments, weak demand, and reduced production. Sentiment remained subdued, with limited expectations for a rebound in early 2025.

Taiwan: The imported scrap market was quiet, with US HMS 80:20 offers at $290-295/t CFR and Japanese H1:H2 at $300-310/t CFR. Demand remained weak, and Feng Hsin Iron and Steel kept prices steady. With sluggish steel sales and the Chinese New Year approaching, market sentiment remained bearish.