Weekly round-up: Global ferrous scrap offers show modest changes

• Turkiye's scrap prices rose 2% on February shipment demand
  
  
• UAE scrap prices drop slightly, rebound expected after Ramadan
  
  

Global ferrous scrap markets witnessed a mixed trend in prices this week. While Turkiye saw a slight increase in prices due to renewed demand, markets in India, Pakistan, and Bangladesh remained subdued due to weak demand and cautious buyer sentiment. Japan and South Korea maintained stable offers, while the UAE experienced a slight decline in domestic scrap prices.

Turkiye: Turkiye's imported scrap market showed a slight increase, with US-origin HMS (80:20) rising to $340/t CFR, up 2% from the previous week's $332/t. While the market remained under pressure due to weak steel demand and unsold January cargoes, there was renewed demand from mills seeking material for February shipments, which helped push prices higher. Despite this, sentiment remained cautious, with many traders uncertain about a strong rebound in the short term.

The scrap-to-rebar spread narrowed w-o-w to $210-215/t as rebar export prices stood at $550-555/t FOB.

The market saw some tightness in supply, particularly from European recyclers, who hesitated to lower offers due to the stronger Euro against the dollar. Traders remained cautiously optimistic, expecting modest price improvements, but no significant surge was anticipated in the near future.

India: The Indian imported scrap market saw limited activity despite a 1% increase in shredded scrap prices from the UK, which stood at $376/t CFR India, up from $373/t the previous week. Shredded scrap offers from the US and UK/Europe were quoted at $370-375/t CFR Nhava Sheva, but buyers countered with lower bids at $365-370/t, resulting in minimal transactions.

Domestic scrap remained the preferred choice for buyers, being more cost-effective and readily available. Anticipation around the upcoming budget and potential safeguard duties further dampened interest in imported materials.

However, while shredded scrap prices edged higher, market activity remained cautious as buyers and sellers adopted a wait-and-see approach.

Approximately 2,000-3,000 t of scrap were booked, including 500-800 t of HMS (80:20) from South Africa at $350-355/t, 1,000-1,500 t of shredded scrap from the US at $365/t, and 300-500 t of fabrication scrap from Poland at $390/t.

Pakistan: The Pakistan imported scrap market remained steady, with UK/Europe-origin shredded scrap prices ranging between $380-385/t CFR Qasim and trades concluded at $380/t. UAE-origin shredded and PNS mix were offered at $395-400/t CFR, but buyer interest was limited.

Domestic scrap prices rose to PKR 145,000-148,000/t ($520-531/t), while rebar prices stayed at PKR 238,000-245,000/t ($854-879/t). Limited activity was observed due to a cash crunch and disrupted supply chains during the winter holidays.

Bangladesh: The Bangladesh imported scrap market remained sluggish throughout the week due to weak finished steel sales, subdued demand, and reduced government project activity. Major mills held sufficient scrap inventories, limiting buying interest. Offers for Australian shredded were at $375-380/t CFR Chattogram, while HMS (80:20) was at $365/t, and PNS was at $390/t.

Activity remained minimal, with no major deals concluded until the end of the week. However, a deal for 2,000 t of Hong Kong-origin PNS and H-beam material was finalised at $392-395/t CFR Chattogram. While UK-origin shredded prices saw a slight increase of $3/t to $384/t CFR Chattogram, it did not lead to significant transactions. Domestic market challenges, such as weak rebar demand and delayed IMF funding, further contributed to the slowdown.

Japan: Japanese steel scrap export offers showed mixed trends this week. Lower-grade H2 scrap prices remained stable at JPY 41,600/t ($267/t) FOB Tokyo Bay, while higher-grade scrap prices held firm due to tight supply. Export demand was muted ahead of the Lunar New Year holidays, with suppliers holding back cargoes. Tokyo Steel reduced its H2 scrap prices by JPY 500-1,000/t at two facilities, though prices in US dollars saw a slight increase.

South Korea: South Korean steelmakers maintained bids for HS at JPY 49,000/t ($313/t) and Shindachi at JPY 48,000/t ($307/t) CFR Korea. For H2 scrap, mills estimated potential deals at JPY 40,000/t ($256/t) FOB Japan, with a range of JPY 39,500-41,500/t ($252-265/t), showing a slight decrease from the previous week. Suppliers remained firm, but buyers were cautious due to fluctuating demand and seasonal factors.

Vietnam: In Vietnam, Japanese suppliers expected a price increase after the Kanto tender, but local buyers were cautious. H2 scrap prices were $312-315/t CFR, with tradable levels around $310/t, while bids stood at $295/t, with some offers below $305/t CFR. Suppliers targeted markets with higher price expectations. A Vietnamese mill bid JPY 46,700/t for HS, while most bids were around JPY 45,200/t, indicating a conservative pricing approach.

UAE: The UAE domestic ferrous scrap market saw a slight decline, with prices falling by AED 32/t ($8/t) w-o-w. Demand remained subdued due to weaker exports and limited domestic buying activity. Offers for processed HMS were at AED 1,210-1,220/t ($329-332/t), but bids were lower, causing a price drop. However, a rebound in demand is expected post-Ramadan. EMsteel kept its rebar prices stable for February, citing firm demand.