Global ferrous scrap markets mixed; Turkiye weakens and UAE strengthens

• Japan tender correction ends ten-month uptrend
  
  
• India spot deals fail to improve market sentiment
  
  

Global ferrous scrap markets remained largely subdued during the week ended 12 June, as weak steel demand and cautious buying weighed on trade across Turkiye, India, Pakistan, and Bangladesh. Meanwhile, Japan and South Korea saw limited activity, while regulatory developments in Europe and firmer sentiment in the UAE provided mixed support.

Turkiye: Deep-sea imported scrap market remained under pressure during the week as weak finished steel demand, lower rebar prices, and declining billet values weighed on mill margins and buying appetite. Workable HMS 80:20 levels eased to $402-404/t CFR by 12 June from $405-408/t CFR earlier in the week. Reported transactions included a 10,000 t France-origin HMS 80:20 cargo at $391/t CFR, a Germany-origin cargo at $392/t CFR, and a 20,000 t France-origin cargo at $386/t CFR. Meanwhile, US-origin HMS 80:20 offers remained higher at $408-409/t CFR, reflecting the continued gap between seller expectations and buyer targets.

India: Imported ferrous scrap market remained subdued during the week, with weak steel demand and poor mill margins continuing to restrict buying activity. Buyers largely stayed on the sidelines, targeting HMS 80:20 around $340-345/t CFR, while workable levels for UK-origin HMS were heard closer to $3350-355/t CFR. A few spot deals were reported, including Brazil-origin HMS 80:20 (2% impurities) at $325/t CFR Mundra, UK-origin shredded scrap at $405/t CFR Mundra, and Malaysia-origin turnings at $340/t CFR Chennai.

The wide bid-offer gap continued to restrict fresh bookings, with UK-origin HMS 80:20 (3% impurities) offered around $360/t CFR India and Philippines-origin GI bundles at $345-347/t CFR. Suppliers increasingly preferred sales to Southeast Asia and Bangladesh, where buyers were willing to pay $15-20/t more than in India.

In the last seven days, India imported a total of 3,500-4,000 t of ferrous scrap, comprising 1,500 t of HMS, 2,000 t of shredded scrap followed by turning scrap.

Additionally, India's Cabinet approved a two-year INR 9,585 crore vehicle replacement scheme for Delhi-NCR, which could generate up to 2.1 mnt of ferrous scrap and support domestic recyclers and steelmakers.

Pakistan: Imported ferrous scrap market remained subdued during the week, with weak finished steel demand and low mill utilisation rates of 35-40% limiting buying activity. Shredded scrap traded around $414-416/t CFR Qasim, while offers remained higher at $420-425/t CFR. A few deals were reported, including Belgium-origin shredded at $415/t CFR and UAE-origin HMS at $420/t CFR, but buyers continued to resist higher prices amid cautious market sentiment.

Bangladesh: Imported scrap market remained subdued during the week, with mills continuing to favour domestic scrap amid weak steel demand and a persistent bid-offer gap. Shredded scrap bids were heard around $410/t CFR Bangladesh, while offers remained higher at $420-425/t CFR for Australia-origin material and $425-430/t CFR for UK-origin material. HMS 80:20 offers were reported at $380-385/t CFR Chattogram. Meanwhile, stronger domestic scrap prices at BDT 55,000-56,000/t ($448-456/t) improved the competitiveness of local material and limited fresh import bookings.

Japan: H2 ferrous scrap export prices fell by JPY 700/t w-o-w to JPY 52,000/t during the week ended 10 June, pressured by lower offer levels and the outcome of the Kanto tender, while limited export activity and domestic mill maintenance weighed on sentiment.

Japan's June Kanto H2 scrap export tender slipped marginally by JPY 96/t m-o-m to JPY 54,506/t ($340/t) FAS for a 20,000 t cargo, ending a ten-month streak of price increases. The cargo is likely bound for Bangladesh, while a weaker yen continued to support the competitiveness of Japanese export offers.

South korea: Ferrous scrap imports remained subdued in May at 60,214 t despite a slight m-o-m increase, as steelmakers continued to favour domestic scrap over higher-priced imports. Meanwhile, rising exports of rebar and H-beams have begun tightening domestic scrap availability, raising concerns over future supply-demand balance.

Europe: BIR has raised concerns over the EU's new Steel Regulation, warning that tighter import quotas and new "melt and pour" requirements from 1 July 2026 could disrupt global recycled steel and ferrous scrap trade flows. The organisation has urged industry participants to engage in the ongoing consultation process to ensure practical compliance measures.

UAE: Domestic ferrous scrap market remained firm during the week ended 12 June, supported by improving regional sentiment and supply-side constraints. HMS 80:20 processed scrap increased by AED 25/t w-o-w to AED 1,027/t ($280/t) DAP Abu Dhabi, while domestic trading activity remained largely stable.