Weekly round-up: Global ferrous scrap offers see downtrend, Bangladesh shows increased activity

• Argentina lifts 16-year scrap export ban, signaling industry changes
  
  
• Bangladesh sees uptick in scrap demand, driven by domestic shortages
  
  

Global ferrous scrap markets witnessed a downtrend in prices, with a slight decline this week. Weak demand, seasonal domestic scrap shortages particularly in Bangladesh, and cautious sentiment across regions like Turkiye, India, and Pakistan pressured prices. While some markets, such as Japan, saw limited activity, others, like Argentina, lifted export bans, signaling shifts in market dynamics.

Turkiye: The Turkish imported scrap market remained subdued throughout the week, with post-holiday activity yet to gain momentum. US-origin HMS (80:20) prices initially stood at $346-350/t CFR, but gradually softened to $343/t CFR by the end of the week, reflecting a 1% drop from the previous week. The market was constrained by weak demand, high collection costs, and unfavorable weather conditions, particularly in the Baltic region, which limited scrap flows. US recyclers were also holding back, awaiting better prices, while European suppliers faced resistance due to stable collection costs in Europe.

Throughout the week, market sentiment remained cautious, with minimal transactions outside the few deals that set the tone. Recyclers in both regions showed resistance to further price reductions, despite mills pushing for lower prices amid subdued demand and a supply overhang. Additionally, expectations of a recovering US domestic market added uncertainty, with some recyclers anticipating higher prices ahead.

India: India's imported scrap market remained sluggish this week due to weak domestic demand, bid-offer mismatches, and a depreciating rupee, which raised import costs. Shredded offers from the UK stood at $383/t CFR Nhava Sheva, down 1% from $387/t last week, while HMS (80:20) offers ranged between $355-370/t CFR.

Buyers favored domestic procurement over imports, citing competitive local prices and concerns over safeguard duties on finished steel imports. Minimal deal activity was reported, with a $10/t pricing gap and cautious sentiment keeping market movement limited.

Approximately 3,800-4,500 t of scrap were booked, including 2,300-2,500 t of HMS (80:20) scrap from South Africa, South America, West Africa and UAE at $355-375/t. Additionally, 1,000-1,500 t of Shredded scrap were booked from Australia at $380/t. There was also booked a HMS (90:10) from UAE at $360-365/t.

Pakistan: Pakistan's imported scrap market remained sluggish this week, driven by weak steel demand and cautious post-holiday sentiment. UK-origin shredded scrap fell 1% to $388/t CFR Qasim, with limited transactions as buyers sought lower prices. Hesitant to commit to large volumes, buyers focused on negotiating discounts amid the prevailing subdued market conditions.

Domestic rebar prices in Pakistan rose to PKR 240,000-245,000/t ($861-879/t), but mills operated at 45-50% capacity due to weak sales and seasonal scrap shortages. While activity was slightly better than in India, driven by domestic scrap shortages, there are no clear signs of recovery. Limited demand and ongoing scrap shortages have provided marginal support to prices, with traders expecting stability within a narrow range in the near term.

Bangladesh: Bangladesh's imported scrap market saw an uptick activity this week, driven by domestic scrap shortages, improved rebar sales, and a slight easing of LC openings. Despite, UK-origin shredded scrap was assessed at $391/t CFR, marking a 1% decline from $394/t the previous week. Rebar prices increased by BDT 3,000-5,000/t ($25-41/t), reaching BDT 85,000-89,000/t ($699-732/t), while domestic scrap prices remained steady at BDT 52,000-55,000/t ($427-453/t).

Active buying was observed in Dhaka and Chattogram, with deals finalised at $360-390/t CFR Chattogram. However, buyers continued to exercise caution, bidding below firm offers.

Despite the LC challenges and cautious procurement kept trading within a limited range. Traders expect prices to remain stable in the near term, with buyers closely monitoring market trends and financial conditions.

Argentina: Argentina has lifted a 16-year export ban on scrap and metal waste, ending policies from 2009. Minister announced that Decrees 1040/20 and 70/23, which extended the ban, will not be renewed. This marks a significant shift in the country's approach to its metal recycling and steel industries, with mixed reactions.

Japan: H2 scrap export offers softened due to sluggish demand and competitive pricing, with suppliers waiting for clarity from the Kanto tender. The tender saw a $13/t increase in bids, with a 15,000-t lot sold to Bangladesh at $283/t FAS. Despite weak global interest, Bangladeshi buyers offered strong bids due to domestic scrap shortages and improved LC availability.

South Korea: South Korea's imported scrap market saw limited activity, with Japanese H2 offers at $325-330/t CFR and tradable levels around $320-325/t. Buyers awaited clarity from the Kanto tender, while domestic prices remained competitive. Major steelmakers, including POSCO, raised scrap purchase prices by KRW 10,000/t ($7/t) from January 10.

Vietnam: Vietnam's imported scrap market remained subdued this week, with muted demand ahead of the Lunar New Year. Japanese H2 scrap offers ranged from $310-320/t CFR, but tradable values were closer to $305-309/t, with a recent deal at $305/t CFR. Buyer and seller expectations diverged, with buyers targeting $305/t and sellers aiming for $310-315/t.

Domestic scrap prices in southern Vietnam remained competitive, and market sentiment was slightly bearish due to slow downstream demand and uncertainty post-holiday.

China: Shagang Steel, China's leading steel mill, reduced scrap procurement prices by RMB 50/t ($7/t) across all grades from 9 Jan'25. As a result, HMS (6-10 mm) is now priced at RMB 2,400/t ($327/t), including 13% VAT. This marks the fourth consecutive price cut by the company in Jan'25. Overall, steel scrap prices have dropped by RMB 160/t ($22/t) in Jan'25.