Weekly round-up: Global ferrous scrap offers remain stable during holidays on cautious market sentiment

• Turkish imported scrap prices drop amid holiday lull
  
  
• China's Shagang cuts prices on rising inventories
  
  

Global ferrous scrap markets witnessed largely stable prices, as well as a slight downtrend this week, with limited activity seen in key regions due to the holiday season. Prices for US-origin HMS 80:20 fell 1% in Turkiye, while India's scrap prices rose slightly. Pakistan and Bangladesh experienced subdued markets, while Russia raised its export quota. China's Shagang Steel reduced scrap prices due to rising inventories and weak demand.

Turkiye: Turkiye's imported ferrous scrap market softened this week, with US-origin HMS (80:20) CFR prices falling 1% to $346/t from $349/t last week. The decline was driven by limited buying interest during the holiday season and mills resisting bids above $345/t CFR. US recyclers held firm at $350/t CFR, creating a bid-offer mismatch and curbing activity.

Market sentiment remained cautious, with Turkish mills favoring lower prices and short-sea options for late January bookings. Winter weather constrained Baltic-origin supply, while high collection costs and a weak euro further challenged price adjustments.

Despite muted trading, supply-demand dynamics appeared balanced. Activity is expected to pick up post-holidays, with February shipment purchases likely to stabilise prices around $345/t CFR.

India: The Indian imported scrap market saw limited activity this week, with shredded scrap prices rising slightly to $387/t CFR Nhava Sheva, up $2/t w-o-w. The increase was driven by tight US supplies, improved domestic steel sentiment, and restocking expectations, though a weak rupee added pressure on buyers.

HMS (80:20) prices remained stable at $360-365/t CFR from the UK/Europe, while West African material was offered at $365-375/t CFR. Holiday closures and cautious buyer interest kept transactions subdued, with most purchases made in small quantities.

Market sentiment improved compared to December, supported by stable domestic steel prices and optimism around restocking. Activity is expected to recover after January 6 as suppliers resume operations.

Approximately 4,500-5,500 t of scrap were booked, including 2,000-2,500 t of HMS (80:20) scrap from Bahrain, Brazil, Ireland and West Africa at $365-370/t. Additionally, 1,000-1,500 t of Turning Boring scrap were booked from Malaysia and Philippines at $325-335/t. There was also a mix of HMS,PNS and LMS, sourced from Yemen and Australia, at $370-380/t.

Pakistan: The Pakistani imported scrap market experienced a subdued week, driven by the New Year holidays, low demand, and persistent cash flow challenges. Offers for UK-origin shredded scrap stood at $390-395/t CFR Qasim, reflecting a slight 1% drop from $393/t last week. Buyers adopted a cautious stance, limiting transactions as liquidity issues and slow payment cycles persisted.

Local scrap prices remained stable at PKR 140,000-148,000/t ex-factory, while rebars were priced between PKR 230,000-245,000/t. UAE-origin HMS (80:20) was offered at $375/t CFR, with fabrication scrap at $390/t CFR. Market activity was minimal, as most buyers and sellers operated in a holiday mode, contributing to the muted sentiment.

Bangladesh: Bangladesh's imported scrap market remained steady, with Shredded-UK CFR prices stable at $394/t, slightly up from $393/t last week. Improved banking operations and resumed construction projects supported local demand, keeping domestic scrap prices at BDT 50,000-55,000/t and rebar at BDT 79,000-85,000/t.

Year-end financial slowdowns and dollar volatility tempered activity, with limited bulk deals, such as Japanese HS and Shindachi mix at $360-365/t CFR. Buyers remained cautious, resisting higher prices despite scrap shortages.

Market momentum is expected to improve next week as banking stabilises and construction accelerates, though financial constraints may cap growth.

Russia: Russia increased its 2025 ferrous scrap export quota to 1.5 mnt, up 31% from 2024, with a 5% customs duty (minimum Eur 15/t). Exports exceeding the quota face a Eur 290/t duty. Despite the rise, Ruslom.com seeks a 2.5 mnt quota to support weak domestic scrap collection, strained by low prices and reduced global demand since 2022.

Japan: H2 scrap export prices fell due to competitive offers, subdued demand, and limited market activity during the holiday period. With most participants on break from 28 December to 5 January, no new offers emerged. BigMint's latest assessment showed a drop of JPY 1,300/t ($8/t) to JPY 42,100/t ($268/t) FOB Tokyo Bay.

Vietnam: Imported scrap market was quiet, with Japanese H2 offers at $315-320/t CFR and bids at $310/t CFR. Northern Vietnam's high domestic scrap prices made imports competitive, while southern mills operated at reduced capacity. US bulk HMS (80:20) held steady at $341/t CFR East Asia, with buyers cautious amid the holiday season.

South Korea: South Korea's imported scrap market was quiet due to weak demand and financial strain on steelmakers from high rebar inventories. Japanese H2 offers were scarce amid the holidays, with mills prioritizing inventory reduction. Many mills halted operations from mid-December, further curbing buying activity as buyers awaited post-holiday market clarity.

Taiwan: Imported scrap market remained quiet during the New Year period, with limited trading. Offers for US HMS 1&2 (80:20) were scarce, and bulk Japanese H1:H2 offers saw limited buyer interest. Mills focused on inventory management, awaiting clearer price direction. Feng Hsin Steel maintained firm rebar and scrap prices, with its rebar at TWD 18,000/t, the lowest since December 2020.

China: Shagang Steel, China's leading steel mill, reduced scrap procurement prices by RMB 50/t ($7/t) from 3 Jan'25, with HMS (6-10 mm) at RMB 2,510/t ($344/t), including VAT. Rising scrap inventories, reaching 6.2 mnt due to winter stocking, and weak steel demand pressured prices. This marks Shagang's first price cut in January.