Weekly round-up: Global ferrous scrap prices remain range-bound

Global ferrous scrap prices remained range-bound with minor revisions seen in various grades worldwide. Overseas trade activities were limited, particularly in the South Asian market. In India, both bulk and container trade activities were sluggish, with only nominal containerised bookings done. The Turkish market saw a couple of deals concluded towards the weekend.

Pakistan experienced very thin trade activities compared to the previous week. Bangladesh's ferrous scrap market remained quiet. Japan saw an increase in scrap export prices, while China's Shagang Steel consistently revised its prices.

Turkiye: The imported scrap market in Turkiye remained sluggish throughout the week. However, a few deals were reported towards the weekend and prices rebounded. Turkish steel producers adopted a cautious approach ahead of the second round of presidential elections. Despite this, 6-7 deals, consisting of grades like HMS(80:20), shredded, PNS, and bonus, from the UK and US, were concluded at apparently higher prices than the current offers.

SteelMint's daily assessment for HMS 1&2 (80:20) from the US stood at $383-385/t CFR Turkiye, reflecting an increase of $8-10/t w-o-w.

India: In India, slow trade activies led to the consideration of alternative raw materials like sponge iron in the northern and western regions. Uncertainty among market participants resulted in hesitation for new bookings. Although major mills were rumoured to have made a few bulk bookings, confirmation is still pending. However, containerized bookings of around 5,000-6,000 t were concluded during the week.

The Indian domestic scrap market observed moderate bookings, with cash transactions being preferred due to the ban on INR 2,000-denomination notes.

SteelMint's assessment for Europe-origin shredded scrap offers into India stood at $439/t CFR Nhava Sheva, remaining unchanged compared to the previous week.

Pakistan: Pakistan's domestic steel market continued to be sluggish, with steelmakers cautious about purchases and imported scrap prices remaining unchanged. Dull finished steel demand kept buyers on the sidelines. However, approximately 3,500-4,000 t of containerised shredded scrap were booked at a range of $435-440/t, some participants informed SteelMint recently.

SteelMint's assessment for UK-origin shredded scrap in containers stood at $440-442/t CFR, largely stable w-o-w.

Bangladesh: Bangladesh's imported scrap prices remained mostly unchanged as steel mills remained caution amid limited inquiries and bearish steel demand in the domestic market. Buyers expect the slow buying trend to continue ahead of the monsoon season.

SteelMint's assessment for containerized UK-origin shredded scrap offers is at $460/t CFR, unchanged w-o-w.

Japan: Japan witnessed a rebound in H2 scrap export prices following limited offers, while the Taiwanese market procured Japanese scrap at elevated prices. The Japanese market remained cautious but showed signs of stability after a previous decline.

SteelMint's assessment for Japanese H2 scrap prices stands at JPY 47,500/t FOB. Prices increased by JPY 1,000/t w-o-w on limited trade.

China: China's Shagang Steel revised ferrous scrap purchase prices twice throughout the week for all grades. The company initially increased purchase prices by RMB 30/t ($4/t) and then reduced these by RMB 50/t ($7/t), resulting in a net change of RMB 20/t ($3/t) from the previous week.

Vietnam: Vietnamese mills remained inactive during the week, and offers for Japanese material continued to decline. Fresh H2 offers were at $380/t CFR, with buyers seeking workable price levels.

SteelMint's assessment for Japanese material (H2) has been unchanged since last week, standing at $370/t CFR Vietnam.