Weekly round-up: Global ferrous scrap prices fall on subdued trade momentum

The imported ferrous scrap market is witnessing sluggish movements in several countries such as Bangladesh, Vietnam, Japan, and South Korea. However, the Indian and Pakistan markets have managed to conclude deals at lower prices, while Turkiye has seen regular shortsea transactions.

Limited demand and low trade volumes have contributed to a decline in imported scrap prices in other countries.

Turkiye: The imported scrap market in Turkiye remained quiet, as market participants adopted a cautious approach due to unfavourable conditions. However, some deals were concluded, and a few cargoes are expected in August to support reconstruction efforts in earthquake-affected regions.

Recent deals included a US bulk vessel with HMS (85:15), shredded, and bonus scrap which were booked at $381/t and $399/t CFR Turkiye, as well as a European vessel of 20,000 t of HMS (80:20) booked at $360/t for prompt shipment.

A steel mill in the Mediterranean region secured a cargo from a Germany-based seller for early-August shipment comprising 27,000 t HMS (75:25) and 3,000 t bonus booked at $372/t and $397/t CFR Turkiye, respectively. Shortsea deals are also underway. Romania-based sellers sold some cargoes at the $356/t price range to Turkiye.

SteelMint's assessment for imported HMS 1&2 (80:20) from the US stands at $375/t CFR Turkiye, down $5/t w-o-w.

India: Importers in India remained cautious due to lower demand but concluded some small-parcel deals to replenish inventories for post-monsoon production. Scrap buyers were active in the market, booking approximately 4,000 t of shredded scrap from the UK at a price range of $409-412/t. Additionally, 6,000 t of HMS (80:20) and turning scrap of UK/Europe and American origin, respectively, were acquired at prices ranging from $362 to $395/t.

The usage of sponge iron in primary mills ensured scrap availability in the domestic market, thereby ensuring workable price levels.

European shredded material offers have edged down w-o-w, currently ranging from $410 to $412/t, witnessing a nominal decline w-o-w.

Pakistan: Pakistan's imported ferrous scrap market experienced a slowdown during the Eid holidays, with major mills closed for the festivities. Recent bookings included a parcel of 9,000 t of shredded scrap of UK origin booked at $415-420/t.

Some sources informed that Pakistani banks are again committing to opening LCs for August and September shipments, which may push importers to refill their inventories.

In addition, this week around 1,500 t of UK-origin shredded was booked at the $415-420/t price range, whereas 500 t of Dubai-origin shredded was booked at $425/t CFR Qasim.

Current offers for shredded scrap from the UK are at $413-415/t CFR Qasim, down $8-10/t w-o-w.

Bangladesh: The imported ferrous scrap market in Bangladesh slowed down after the Eid holidays due to sluggish domestic market and reduced buying interest for finished and semi-finished steel products during the rainy season. Indicative offers for US-origin bulk scrap remained range-bound at $410-415/t CFR, while Japanese H2 material prices remained unchanged at around $415/t CFR.

SteelMint's assessment for UK-origin shredded scrap stands at $440/t CFR Chattogram, a slight decrease of $8/t w-o-w.

Japan: Japanese H2 scrap export prices fell slightly w-o-w. Both the domestic and export markets witnessed limited activity, as buyers are waiting for the upcoming Kanto tender.

SteelMint's assessment showed Japanese H2 scrap prices at JPY 49,500/t ($345/t) FOB.

Vietnam: Prices of imported deepsea bulk scrap into Vietnam remained stagnant, but Vietnamese buyers have set their target prices significantly lower, creating a gap between offers and bids. Many mills in Vietnam are hesitating to participate in the deepsea bulk scrap market actively due to lean profit margins and weak steel sales.

Indicative bids for HMS (80:20) scrap were at $405-410/t CFR, while H2 scrap indicatives stood at $390-400/t.