Weekly round-up: Imported scrap prices in South Asia witness mixed trend; Turkish market sees downturn

Imported ferrous scrap prices exhibited a mixed trend in South Asia this week. In India, price disparities persisted amid limited buying inquiries and weaker steel demand, while Pakistani buyers remained silent due to the ongoing general election. However, Bangladeshi buyers continued to actively participate in the imported market with multiple containerised scrap deals.

In the Turkish market, imported prices dropped w-o-w with minor fluctuations throughout the week, with moderate trading activities reported by mills from the US and Europe.

Meanwhile, in Japan, the Kanto export tender experienced a slight uptick during the week that concluded on 9 February. However, subdued demand was observed from key importing countries such as South Korea and Vietnam ahead of the Lunar New Year holidays.

Turkiye: Turkish imported ferrous scrap prices dipped slightly by $2/t to $419/t, while indicative tradable values for HMS (80:20) remained steady at $419-422/t CFR.

Approximately 6-7 bulk deals were reported throughout the week, covering various mixed grades from the UK, US, and Russia, with prices ranging from $418-432/t CFR Turkiye. Sellers held firm against further drops, citing constrained availability in Europe and stable domestic HMS prices in the US. Collection costs surged in Europe, reaching Euro 350/t in the Baltic region and Euro 345-350/t in the Benelux region. Limited availability in Europe contributed to market uncertainties.

BigMint's assessment for US-origin bulk HMS (80:20) witnessed a marginal $2/t decline to $419/t CFR Turkiye. The scrap-to-rebar spread stood at $195-198/t, with Turkish exported rebar assessed at $612-615/t FOB Iskenderun.

India: In India, demand for imported scrap remained subdued due to a sluggish finished steel market. Shredded scrap prices from Europe saw a minor uptick to $415/t CFR Nhava Sheva, while HMS (80:20) remained stable at $397/t CFR Nhava Sheva and dropped to $393/t from West Africa to Chennai port. Despite tepid market conditions, some transactions occurred, including 1200 t of Malaysian-origin CR bushelings at $440/t CFR and 500 t of HMS (80:20) from West Africa at $385/t CFR.

Domestic scrap prices are $15-20/t lower than imported scrap, with recent offers for UK-origin HMS at $375/t CFR Mundra receiving minimal interest. The recent short-term surge in domestic steel scrap availability over the last couple of days has empowered mills to tactically cut down their scrap procurement costs. With the prevailing subdued market conditions in the steel sector and the arrival of sponge iron in decent volumes, scrap suppliers lowered their prices today in Mandi Gobindgarh," a scrap supplier informed BigMint.

Pakistan: Pakistani buyers largely remained inactive in the market amid ongoing general elections. Indicative prices for shredded scrap from Europe ranged from $440-444/t CFR Qasim, with purchases of LMS bundles and shredded scrap from Europe priced between $375-442/t CFR Qasim. HMS (80:20) was offered from UAE within the range of $418-420/t.

Market activity was subdued due to the electoral process, with buyers shifting focus to the EU/UK market due to import restrictions and export duties imposed by the UAE.

In the domestic market, local scrap prices were reported at PKR 164,000-168,000/t ($587-601/t) exw, with rebars at PKR 264,000-268,000/t ($945-959/t) and billets at PKR 220,000-225,000/t ($787-805/t), both exw.

Bangladesh: In Bangladesh, post-election, improved LC approvals and increased domestic steel production boosted demand for imported scrap. Despite earlier high offers, recent drops in prices activated the market. Improved LC approvals following the election led to increased buyer interest, prompting suppliers to lower offers to test the market, resulting in better transaction volumes.

Multiple bulk deals were closed last week, with around 20,000-25,000 t of containerised scrap deals across various origins like Australia, the US, and Europe throughout this week. Europe-origin shredded scrap dropped to $433-436/t CFR Chattogram, while Japanese H2 scraps were at $426-430/t. US-origin HMS (80:20) bulk indicatives were at $430-435/t, with inquiries at $425-428/t CFR Chattogram.

Japan: Japan's Kanto export tender secured 15,000 tonnes of H2 scrap at JPY 53,087/t ($355/t) on a FAS basis, with a slight increase of JPY 6/t m-o-m. The FOB price is approximately JPY 54,100-54,200/t ($362-363/t), destined for Bangladesh.

Tokyo Steel maintained its scrap procurement prices this time, refraining from adjustments after last month's bidding. Market observers are watching closely for potential implications on purchase prices among steel manufacturers, particularly Tokyo Steel, following recent price fluctuations.

South Korea: In South Korea, mills showed little interest in the seaborne market due to ample local scrap and higher overseas scrap prices. The scrap inventory of eight major steel manufacturers increased by 4% or 33,000 tonnes (t) from the previous week, reaching a total of 769,000 t. This marks the third consecutive weekly rise, driven by recent price cuts and the approaching Lunar New Year holidays. Steelmakers in the central region saw a more substantial increase compared to those in the southern region.

Vietnam: The Vietnamese ferrous scrap market experienced a price downturn and subdued demand ahead of the Lunar New Year holidays. Market activity remained minimal as buyers and traders awaited the holiday period. US-origin HMS (80:20) scrap was offered at $405-410/t, while H2 offers hovered around $400/t CFR Vietnam.