Weekly round-up: Global ferrous scrap prices show mixed trends

This week, global ferrous scrap prices witnessed a mixed trend w-o-w. South Asian markets, including India, Pakistan, and Bangladesh, remained largely stable, with a slight 1% decline. In India, buyers actively pursued imported scrap as domestic availability tightened and prices rose, alongside increased demand for finished steel. Conversely, Pakistan and Bangladesh experienced sluggish activity due to subdued sales of finished steel and constrained cash flows.

In Japan, H2 scrap export offers saw a marginal increase, attributed to the depreciation of the Japanese yen against the US dollar and heightened inquiries from Taiwan. South Korean mills maintained a restrained stance, refraining from bidding for seaborne scrap amid subdued downstream demand.

Turkiye: Turkish deep-sea scrap prices remained stable despite slow trade, with Turkish steelmakers seeking May shipments but no new bookings reported. Scrap recyclers anticipated bids from Turkish buyers, expecting a slight price drop. Caution prevailed among Turkish mills as they monitored post-Labour Day Asian market trends.

According to BigMint's bulk vessel tracker, 22-25 deep-sea bulk vessels were booked for late-April and early-May shipments. Dockside scrap costs in the Benelux region, are at Euro 318-320/t, which could push Turkish import prices to $384-385/t CFR. However, weak scrap flows and rising collection costs could make $378-380/t CFR unattainable without a significant increase in Turkish mill demand.

BigMint's assessment for US-origin HMS (80:20) bulk scrap stood at $385/t CFR, down $1/t w-o-w. HMS (80:20) from the US East Coast was $359/t FOB, a drop of $2/t w-o-w.

Turkish rebar export prices stood at $588-590/t FOB, with the scrap-to-rebar spread increasing to $205/t from $203/t w-o-w.

India: This week in India the demand for imported scrap saw a significant increase as buyers faced a limited supply of domestic scrap coupled with increased consumption of finished steel domestically. Particularly, some rolling mill noted low inventories of scrap, leading to consistent purchases of imported scrap.

A spokesperson from a steel mill in south India said, "The domestic market is experiencing a temporary scarcity-driven uptick. Internationally, prices remain steady, with imported scrap currently priced lower than local scrap. With domestic scrap supplies dwindling, imports, which constitute 30-40% of our supply, have become essential. We are steering clear of purchases from the UK, the US, and the EU due to higher freight costs, preferring destinations like Hong Kong, Australia, and South America."

On a weekly average basis, shredded scrap offers from Europe saw a slight decrease of $1/t w-o-w to $425/t CFR Nhava Sheva, while offers from the US increased by $2/t to $421/t CFR.

HMS (80:20) offers from Europe averaged $406/t CFR Nhava Sheva, up by $1/t w-o-w.

Notably, approximately 13,000 t of shredded scrap were booked from the US, UK, Europe, and Australia during the week within the range of $415-425/t CFR followed by around 4,000 t of HMS 1 from Latin America, South Africa, and Bahrain at $380-422/t CFR, and approximately 1,000 t of HMS (80:20) from West Africa at $405-415/t CFR.

Pakistan: This week in Pakistan, market activities slowed due to lackluster demand for finished steel and tight cash flow. Additionally, some mills halted production due to elevated steel stocks, while others operated at less than 50% capacity. The absence of new projects after elections further dampened market sentiments.

On a weekly average basis, shredded scrap offers from the UK/Europe were at $425/t CFR Qasim, showing a decline of $3/t compared to the previous week's $428/t CFR.

Bangladesh: Bangladesh's demand for imported scrap declined due to a sluggish steel market and the lack of new government projects. Shredded scrap from the UK/Europe ranged from $420-425/t CFR Chattogram, while HMS (80:20) stood at $400-405/t CFR.

BigMint's assessment for Europe-origin containerised shredded scrap offers are at $425/t $2/t w-o-w, but HMS (80:20) offers rose to $405/t CFR Chattogram, a $2/t increase w-o-w. Around 5,500-6,000 t of containerised scrap were booked over the past week from sources like Australia, the UAE, and Hong Kong.

US scrap yard negotiations for bulk bookings continue, but outcomes are uncertain due to bid-offer gaps. US-origin HMS (80:20) bulk scrap increased by $2/t to $400/t CFR Chattogram. Japanese H2 scrap offers ranged from $393-396/t, with buyer interest at $388-390/t CFR. BigMint's assessment for Japan-origin H2 bulk scrap saw a $4/t rise to $395/t CFR Chattogram.

Japan: This week, Japan saw a slight uptick in its H2 scrap export offers, attributed to the weakening of the Japanese yen against the US dollar. However, this decline in value, when measured in dollar terms, facilitated a few transactions to Vietnam and Taiwan.

According to BigMint assessment, Japanese H2 scrap export offers now stand at JPY 51,700/t ($337/t) FOB Tokyo Bay, reflecting an increase of JPY 300/t ($2/t) compared to the previous week's JPY 51,400/t ($335/t) FOB.

South Korea: South Korean mills continued to show lack of enthusiasm for buying imported scrap owing to sluggish downstream demand. Additionally, reports indicated that some mills were operating at only 50% capacity, with a few contemplating further cuts beyond the 50% mark in the coming months if demand for rebar fails to improve, all in an effort to sustain margins.

This week, the iron scrap inventory held by eight major Korean steel mills was reported at 856,000 t, marking a decrease of 16,000 t compared to the previous week.

Vietnam: In Vietnam, there were reports of downstream domestic scrap demand being bolstered by efforts to replenish inventory levels ahead of the holidays this week. Meanwhile, buyers observed that as imported scrap prices increased, mills persisted in using domestic scrap to mitigate material costs, despite limited local supply.

Offers for H2 scrap varied between $378-385/t CFR Vietnam, with bids ranging from $368-373/t CFR and below.