Weekly round-up: Global imported scrap prices show mixed trends; Turkiye resume bookings after two weeks break

Global imported ferrous scrap prices displayed mixed trends w-o-w. Import offers to India and Turkiye experienced a correction of 1-2% as Indian buyers opted to remain on the sidelines, citing price disparities and the availability of previously booked materials. Furthermore, the week witnessed a lack of firm offers, with major suppliers observing a holiday hiatus.

In Turkiye, mills re-entered the market after a two-week silence and secured a few cargoes at lower levels compared to previous bookings. Meanwhile, Pakistan and Bangladesh maintained stability, with a lack of buying interest attributed to a slowdown in the finished steel sector, particularly amid the upcoming elections in January and February.

Japanese export offers saw a decline during the week, reflecting reduced demand from South Korea, Taiwan, and Vietnam ahead of the holidays.

Turkiye: The Turkish import scrap market ended the year with minimal activity and mixed sentiments. Limited negotiations took place during the holidays, and attention focused on earlier sales at lower prices. Some anticipated further price weakening, while exporters resisted due to higher costs and limited supply.

Recent deals influenced the prices for HMS (80:20) from the US, decreasing to $414-415/t CFR Turkiye. Deals included a West-Marmara mill securing HMS (80:20) scrap at $410/t CFR from Europe and another mill in Venezuela concluding a bulk cargo deal at $410/t CFR. A Mediterranean steelmaker secured late January and early February shipments of HMS (80:20) at $419/t CFR and shredded material at $439/t CFR from a US scrap supplier.

The scrap-to-rebar spread was assessed at $190-195/t as export offers for rebar hovered around $605/t on a FOB basis.

SteelMint's assessment for the US-origin bulk HMS (80:20) declined by $9/t w-o-w, reaching $415/t CFR Turkiye.

India: During the week in India, no firm offers or bids for imported scrap were observed as suppliers were absent due to the Christmas and New Year holidays. Additionally, buyers exercised caution due to disparities in prices and the availability of previously booked materials at lower costs. The latest indicative offers for shredded scrap from Europe were assessed at $405-410/t CFR Nhava Sheva, and HMS (80:20) scraps were priced at $385-395/t CFR.

Pakistan: In Pakistan, interest in booking imported scrap remained limited among market participants throughout the week, influenced by year-end closures and sluggish sales of finished steel in the domestic market. The latest indications for shredded scrap from Europe were reported at $420-430/t CFR Qasim.

A prominent steel manufacturer in Pakistan, Agha Steel (AGHA), has entered into a partnership with the International Finance Corporation (IFC) to delve into green steel production. AGHA, focussing on steel bars, wire rods, and billets, has signed a non-disclosure agreement with IFC, a member of the World Bank. The collaboration aims to explore strategies for transitioning to environmentally friendly steel production, incorporating advanced techniques such as carbon capture and storage solutions.

Bangladesh: In Bangladesh, the imported ferrous scrap market remained quiet with nominal bookings and limited activities. European suppliers faced challenges with winter conditions and shipping disruptions. Containerised shredded scrap offers from Europe range from $432 to $435/t CFR Chattogram, while HMS (80:20) is offered at $410 to $415/t CFR. The market is subdued due to year-end factors, and the upcoming January elections contribute to the prevailing quietness.

Rebar prices in rolling mills range from BDT 84,000 to 88,000/t, with major primary mill's rebar priced at BDT 92,000 to 96,000/t. Scrap prices include PNS at BDT 62,000 to 64,000/t, HMS (80:20) at BDT 59,000 to 60,000/t, and shipbreaking plate (22mm) at BDT 74,000 to 75,000/t. Shipbreaking scrap is priced at BDT 65,000 to 66,000/t, showing a slight increase due to limited ship arrivals.

Japan: Japan's H2 scrap export offers saw a second consecutive weekly decline due to a lack of buyer activity amid year-end holidays. Moreover, Japanese traders adopted a more reserved approach in the seaborne market, refraining from active offerings due to pricing uncertainties during the holiday season. According to SteelMint's weekly assessment, the H2 scrap export offer from Japan stood at JPY 50,400/t ($357/t) FOB Tokyo Bay, marking a JPY 600/t ($4/t) decrease compared to the previous week's JPY 51,000/t ($361/t) FOB.

Vietnam: Japanese H2 scrap export offers to Vietnam stood at $400/t CFR, down by $5-10/t as against $405-410/t CFR a week ago. No deals were heard during the week as market participants were on a holiday mood. In the domestic market, a leading steel mill reported procurement prices of H1 grade scrap at VND 9,700/kg ($400/t) DDP and H2 scrap prices at VND 9,500/kg ($392/t) DDP. "Finished steel sales and construction activities remained slow due to holidays," a Vietnam-based trader informed.

South Korea: The imported scrap market in South Korea stayed quiet, with domestic prices persistently lower than those of imported scrap. Additionally, the holiday season kept market participants on the sidelines, contributing to the subdued activity.

This week, the collective steel scrap inventory across eight South Korean steel companies stood at 946,000 t. In comparison to the previous week, this reflected a reduction of 33,000 t, equating to approximately 3.5%. Both the central and southern regions experienced decreases, except for POSCO, where the inventory actually increased. Notably, this marked the third consecutive weekly decline.

China: China's leading steel mill, Shagang Steel has raised procurement prices for ferrous scrap across all grades by RMB 50/t ($7/t), effective 26 December. The adjusted price stood at RMB 3,010/t ($421/t) for HMS (6-10 mm), inclusive of 13% VAT. This is an increase from the previous price of RMB 2,960/t ($415/t) on 19 December, for deliveries to their headquarters. It's the company's second consecutive price hike this month.