Weekly round-up: Global ferrous scrap offers see mixed trends, Turkiye edges up following recent deals

This week, the global ferrous scrap markets showed mixed trends. Turkiye saw a $5/tonne (t) rise in scrap prices to $363-371/t, as sellers maintained firm offers due to supply shortages. A modest market recovery is expected, despite potential impacts from increased steel billet deliveries.

But in South Asia, India faced sluggish demand with inactive buyers, and Pakistan saw steady prices amid cautious buying due to ongoing monsoons. Bangladesh struggled with financial difficulties and low production.

In Far East Asia, Japan continued to see declining scrap prices due to weak demand and rising freight costs. Whereas, South Korea's market remained stable but with low buyer activity. In Southeast Asia, Vietnam's imported scrap price for Japanese H2 scrap prices fell.

Turkiye: The Turkish imported ferrous scrap index rose by $5/t w-o-w, as sellers maintained firm offers, sensing mills were short on supply. Five deals were concluded this week in the range of $363-371/t CFR Turkiye.Most cargoes are due in early October.

Early September saw a slow Turkish scrap market due to price uncertainties, as mills, having secured import billets,delayed scrap purchases.

Turkish mills now face scrap shortages, with US-origin HMS (80:20) offers firm at $370-375/t CFR. EU suppliers reported higher Turkish rebar prices due to strong order volumes and slow scrap generation.

A Turkish buyer expects a modest market recovery, though steel billet imports from Asia could limit gains.Billet deliveries are set to peak in late September and October.

Notably, export offers from the US East Coast for HMS (80:20) rebounded by $10/t this week to $342/t FOB after a demand slump from Turkiye, India, and Pakistan.

India: The imported scrap market in India continued to face sluggish demand, driven by a significant gap between bids and offers, along with the monsoon slowdown in the domestic steel market. Shredded scrap offers were quoted at $385-395/t CFR Nhava Sheva, while HMS (80:20) was at $364/t, but buyers remained largely inactive, pushing for lower prices amid weak finished steel demand and high inventory levels.

Despite these challenges, suppliers and traders are cautiously optimistic, suggesting that prices may have nearly bottomed out. The market has hopes for a potential demand boost after mid-September as weather conditions improve and winter approaches.

Additionally, market sentiment has been influenced by the possibility of future regulations requiring automakers to recycle steel from older vehicles. Starting FY'26, India could mandate that 8% of steel from vehicles sold since 2005 be recycled, which may significantly impact long-term scrap market dynamics.

Pakistan: Shredded scrap offers from the UK and Europe held steady at $399-400/t CFR Qasim, with demand for imported scrap subdued by ongoing monsoons and a slowdown in construction, which has affected rebar sales.

Buyers are approaching the market cautiously, waiting for stability before making any large purchases. To stimulate sales, steel mills were reportedly offering discounts on rebars, according to market participants.

In the domestic market, local scrap prices stood at PKR 140,000-148,000/t, while rebars were priced at PKR 240,000-250,000/t, depending on payment terms.

Bangladesh: The imported scrap market experienced a slowdown this week, affected by seasonal challenges and ongoing issues from the recent severe floods. Buyers faced severe financial difficulties, making it hard to open letters of credit (LCs) even for existing orders.

Indicative offers for shredded scrap from the UK/Europe stood at $400-405/t CFR Chattogram, while HMS (80:20) offers were at around $390-395/t CFR.

Production was constrained, with many factories operating at only 50-60% capacity due to poor rebar sales and strict bank regulations. Weak construction activity suggests continued challenges for long product producers.

Japan: Japanese H2 scrap export offers continued to decline for the eighth consecutive week, with offers standing at JPY 43,500/t ($305/t) FOB Tokyo Bay, down by JPY 1,000/t ($7/t) from last week.

The Japanese market is facing persistent downward pressure due to weak demand from key markets, including Vietnam, South Korea, and Taiwan. This limited buying interest, combined with rising freight rates and competitive offers from other exporters, is contributing to a continued decrease in offers.

Tokyo Steel continued to reduce its domestic scrap procurement prices for the fourth consecutive week, with a total drop of JPY 1,500/t ($10/t) in a single week. Prices at the Tahara, Okayama, Kansai, and Kyushu plants stood at JPY 44,500/t ($311/t), while those at the Takamatsu and Utsunomiya plants were JPY 43,500/t ($304/t), and those at the Nagoya plant were JPY 43,000/t ($301/t).

Vietnam: In Vietnam, Japanese H2 scrap offers declined to $350-355/t CFR, down from $356-360/t the previous week, with limited buying activity following the National Day holidays. Rising freight costs added pressure, while buyers remained cautious, waiting for cheaper inventory to clear. Domestic scrap prices held steady at VND 9,500/t ($380/t) in the north and VND 8,500-8,950/t in the south, as weak demand and billet mill losses kept local prices higher than imports.

South Korea:Scrap prices remained stable with H2-equivalent light A grade at KRW 425,000/t ($317/t) and heavy A grade at KRW 440,000/t. Buyers were mostly inactive due to weak demand, though scrap inventories of major steel mills rose 2% to 707,000 t, marking the first consecutive weekly increase since March.