Weekly round-up: Global ferrous scrap markets remain mixed

• India import scrap muted amid weak buying
  
  
• US scrap exports strengthen on Turkish buying
  
  

Global scrap markets recorded mixed trends in the week ended 16 January as Turkiye stayed firm on tight supply and higher costs, while India, Pakistan, and Bangladesh remained subdued amid weak buying interest. Japan and the US saw price support from currency moves and tight supply, while UAE and South Korea faced cautious trade despite low inventories.

Turkiye: Deep-sea imported scrap market stayed firm during the week, supported by seasonal supply tightness, limited seller participation, and higher European collection costs. Expectations of rising US domestic scrap prices led exporters to focus on local sales, tightening export availability and underpinning Turkish import prices.

US-origin HMS 80:20 was heard around $376/t CFR, supported by tight supply conditions and fresh deal activity, keeping sentiment firm in the Turkish import scrap market. Winter collection costs in Europe rose to the high EUR 270s/t, keeping offers firm, while mills remained active buyers despite weaker rebar demand due to the lack of cheaper billet alternatives.

India: India: India's imported ferrous scrap market remained subdued through the week, as marginal improvement in steel demand failed to trigger fresh buying amid largely unworkable offer levels. Buyers stayed cautious and highly price-sensitive, supported by ample availability of cheaper domestic sponge iron and sufficient HMS and super scrap inventories.

UK/EU-origin shredded was offered at $355-358/t CFR, while HMS 80:20 hovered near $330/t CFR with limited interest. Australian HMS at $325-330/t CFR and shredded at $345-350/t CFR also drew muted buying.

Overall, around 3,000-3,500 t of imported scrap was reported, dominated by HMS 80:20, along with limited NTP, as buyers restricted purchases to strictly workable levels.

Pakistan: Imported scrap market remained muted and highly selective throughout the week, as elevated export offers and margin pressure curtailed buying interest.

UK/EU-origin shredded scrap gradually firmed, with indications ranging from $365/t to as high as $372/t CFR Qasim, while UAE-origin shredded was heard around $370-375/t CFR. Buyers largely targeted workable levels near $362-365/t CFR, limiting deal flow. UAE-origin HMS indicated at $356-358/t CFR Qasim.

Bangladesh: Imported scrap market stayed subdued throughout the week, with buyers showing limited appetite and engaging only in selective procurement. Australian-origin HMS 80:20 was largely indicated at $330-342/t CFR, HMS 90:10 at $335-342/t CFR, and shredded scrap at $355-364/t CFR, while PNS was heard around $365-370/t CFR Chattogram. Despite firmer sentiment in Japan after repeated Kanto tender gains, buying interest remained weak.

Japan: H2 scrap at JPY 44,800/t ($283/t) FOB Tokyo Bay, up JPY 1,250/t ($8/t) w-o-w, underpinned by yen depreciation and stronger benchmark levels. US-origin HMS 80:20 offered at $350/t and bids near $335/t CFR Vietnam.

In Vietnam, H2 scrap offers stood at $320-325/t, with some at $330/t, post-New Year production and favorable exchange rates are expected to support near-term demand.

US: Ferrous scrap export prices strengthened as a Turkish mill booked cargoes at the highest confirmed levels since March, supported by tight domestic supply and firmer steel prices. East Coast bulk scrap rose to $350/t for HMS 80:20 and $370/t for shredded.

UAE: UAE scrap prices edged lower w-o-w, with the processed HMS index down AED 3/t to AED 1,129/t, as buyers stayed cautious amid uncertainty following the rollout of VAT pricing under the RCM mechanism. Mill inquiries remained selective, while export offers rose $5-6/t, widening the domestic-export gap.