Weekly round-up: Global scrap prices fluctuate w-o-w amid low-priced Turkish deals

The global ferrous scrap markets saw fluctuations in prices and demand this week. Turkish imported scrap prices dropped due to low-priced deals as steelmakers restocked gradually. India had nominal bookings for imported scrap, with distressed selling impacting some offers. Pakistan's market remained sluggish with weak domestic demand and anticipated further price declines. Bangladesh had moderate deals at low prices, and Japan's ferrous scrap exports declined due to limited trade and reduced demand. In contrast, China's Shagang Steel raised ferrous scrap purchase prices after six weeks.

Turkiye:The Turkish imported scrap market experienced fluctuations with a decline of $10-15/t w-o-w. This was attributed to frequent low-priced deals, resulting in negative sentiment within the domestic steel market. Despite this, steelmakers continued gradual restocking with imported scrap. However, challenges may lie ahead for the Turkish steel industry as electricity prices are expected to surge by 50% or more, potentially increasing steel production costs by at least $20/t.

Meanwhile, this week HMS 80:20, and the rebar price spread declined to $215/t as rebar was assessed at $565/t FOB Iskenderun and HMS 80:20 was assessed at $350/t CNF Iskenderun.

Recent deals were heard in a price range of $339-355/t CFR basis, origins are US, Europe, and the Baltic region mostly.

India:The Indian imported scrap market observed nominal bookings, with offers for UK-origin shredded scrap at $406-415/t CFR Nhava Sheva/Mundra. Some distressed selling was evident as some traders offered even lower prices. Overseas sellers adopted a bullish stance following deals made by Turkiye.

Fresh bids for the west coast India for European shredded are at $400/t, UK-origin HMS (80:20) at $365-370/t, and turning scrap from Europe at $330/t.

Europe origin HMS(80:20) offers CNF Nhava Sheva stood at $385-390/t level meanwhile bids coming at lower than $10/t, same with West African HMS(80:20) which stood at $380/t level for West Coast India and $390/t for South Coast India for this week. Nevertheless, sellers in India are adopting a bullish stance after frequent deals done by Turkiye.

In a recent development, delays in the clearance process for scrap imports from the UAE were encountered due to alerts issued by the National Counter Terrorism Centre (NCTC).

Pakistan: Pakistan's imported ferrous scrap market remained sluggish due to weak domestic demand. Recent offers were heard at $410-412/t, and some traders quoted even lower prices at $406-408/t. Participants anticipated further declines in offers to around $390-400/t. Rebar prices in Pakistan experienced a hike(by PKR 5,000-7,500/t ($18-$26/t) on exw Punjab), as major mills facing reduced profit margins from sales.

SteelMint's assessment for shredded scrap from the UK is at $410-412/t CFR Qasim, slightly up by $2-4/t w-o-w.

Bangladesh: The Bangladeshi imported ferrous scrap market saw moderate deals at low prices, reflecting less demand in the steel market. Weak end-user demand was attributed to the monsoon season and slow construction activity across the country.

In terms of domestic steel prices, rebar in Chattogram is priced at BDT 96,000/t ($884/t), while in Dhaka, it ranges from BDT 89,000/t ($820/t). Mills are maintaining offers due to weak end-user demand, attributed to the monsoon season and slow construction activity across the country. Domestic scrap market activities were slow, and local ship-breaking scrap prices stood at BDT 60,000/t ($553/t) ex-yard.

Japan: The Japanese ferrous scrap (H2) export market witnessed a continuous decline in prices due to limited trade and reduced demand from major buyers such as South Korean and Vietnamese mills. Japanese H2 scrap prices decreased by JPY 1,000/t ($7/t) to JPY 48,000/t ($340/t) FOB. Trade activities during the Obon holidays were expected to influence short-term price movements.

China: China's Shagang Steel raised ferrous scrap purchase prices by RMB 50/t ($7/t) for all grades after nearly six weeks. HMS (6-10 mm) prices stood at RMB 2,980/t ($415/t), including 13% VAT, delivered to headquarters. This marked the first price hike by the company since the last reduction announced on June 14, 2023.

Vietnam: Vietnamese market participants speculated that a rise in domestic scrap prices might lead to increased demand for imported raw materials. However, Vietnamese mills remained hesitant to purchase overseas scrap due to the availability of attractive imported billets and challenges in the finished products sector.

Bulk US-origin HMS 1&2 (80:20) was offered at $385/t CFR Vietnam, and Japanese H2 scrap was available at approximately $385-390/t CFR, both experiencing slight declines w-o-w.