Weekly round-up: Global ferrous scrap offers witness modest increase amid tightening supply

• Turkiye sees rising prices driven by strong seller sentiment
  
  
• US export offers rise due to tighter domestic supply
  
  

Global ferrous scrap markets witnessed a increased trend in prices this week. Prices rose in Turkiye, driven by stronger seller sentiment and tightening supply, while the US saw a $10/t increase due to domestic tightening. Markets in India, Pakistan, and Bangladesh showed cautious activity amid limited demand and holiday disruptions. Vietnam saw a slight uptick due to competitive freight rates.

Turkiye: Turkiye's imported scrap market showed a steady upward trend, fueled by stronger seller sentiment and expectations of higher US domestic demand. Early in the week, US/Baltic-origin HMS (80:20) was priced at $340-345/t CFR, but weak finished steel sales and limited mill restocking kept activity subdued. Kardemir's lower rebar prices also dampened buying interest.

By the weekend, multiple deals pushed prices to $345-350/t CFR for US/Baltic-origin HMS (80:20), with a US-origin deal at $349/t CFR and shredded/PNS at $369/t CFR. The rise in global scrap prices and increased competition for materials supported the upward trend. Sellers remained firm, with offers for US/Baltic-origin HMS (80:20) moving higher to $350-360/t CFR, driven by tightening availability and strong global demand.

India: India's imported scrap market saw mixed activity this week, beginning with sluggish demand early in the week as buyers preferred cheaper domestic scrap. Limited deals were reported, with UK-origin shredded offered at $375/t CFR but bids staying lower.

Going forward, market sentiment improved slightly as strong rebar sales and booked orders for major mills supported demand, with two bulk US shipments booked at $370-372/t CFR Mundra, though price sensitivity remained a key factor, with buyers pushing for lower bids, causing a bid-offer mismatch.

Activity remained muted, with buyers holding back due to liquidity concerns and the availability of cheaper domestic scrap. Workable HMS (80:20) prices stood at $355-360/t CFR, but counter bids for Australian shredded remained below $365/t CFR Future trends depend on domestic demand shifts.

Approximately 15,500-16,500 t of scrap were booked, including 7,500-8,500 t of HMS (80:20) of shredded scrap from Middle East, UK, US, Chile, Malaysia, Caribbean, Brazil has booked at $325-360/t, 4,000-5,000 t of shredded scrap from the US and Malaysia at $365-375/t, and 300-500 t of fabrication scrap from Poland at $390/t.

Pakistan: Pakistan's imported scrap market saw a slight uptick in prices this week. Initially, offers for EU-origin shredded scrap were at $381-382/t CFR Qasim. However, by the end of the week, prices rose to $383/t CFR due to tightening local supply and steady demand for premium-grade materials.

Despite the price rise, the market remained cautious, with buyers focusing on securing high-quality scrap from reputable suppliers. Activity is expected to pick up by mid-February as mills prepare for Ramadan restocking.

Bangladesh: Bangladesh's imported scrap market started with limited demand and minimal buying activity, as mills remained cautious. Offers for HMS and shredded scrap were steady, but buyers held back, awaiting clearer price trends.

Mills gradually began evaluating offers more actively, particularly in Chattogram, where operations were at full capacity. Some deals were secured, including Dubai-origin heavy PNS at $395/t CFR and Hong Kong-origin PNS at $390/t CFR, as mills positioned themselves ahead of pre-Ramadan restocking.

Steady demand continued, with multiple transactions settled via LCs. Market sentiment turned bullish, driven by increased stocking activity, though uncertainty remains about its sustainability beyond the festive period.

Japan: H2 scrap export prices saw a slight increase to JPY 42,000/t ($271/t) due to limited trading activity amid the Lunar New Year holidays. Tokyo Steel, Japan's largest EAF steelmaker, reduced its scrap purchase prices for the first time in over a month, cutting by JPY 500-1,000/t ($3-6/t), driven by weak domestic demand and holiday disruptions.

Vietnam: Vietnam's imported scrap market saw a $5/t increase despite weak demand ahead of the Tet holidays. Japanese bulk H2 scrap was offered at $315-320/t CFR, and US HMS (80:20) at $340/t. With limited market activity due to the holidays and sufficient inventories, mills adopted a cautious approach. Improved vessel availability and competitive freight rates also influenced the slight price uptick.

US: US ferrous scrap export offers rose by $10/t due to tightening domestic supply and growing competition for material. Prices for HMS (80:20) rose to $328/t FOB, with strong domestic market expectations for February driving the surge. Export prices increased for Turkiye and Vietnam, while prices to Chattogram softened. Shredded scrap is in short supply, potentially leading to higher costs compared to busheling.