Weekly-round up: Global ferrous scrap offers see mixed trend; Turkish, Indian buyers conclude multiple deals

This week, global ferrous scrap prices exhibited a mixed trend. In South Asia, offers remained mostly stable, with a slight 1% drop in Bangladesh. Indian buyers displayed active interest in booking scraps from the seaborne market due to tight supply and anticipated steel demand post elections. However, the Pakistan and Bangladesh markets were sluggish due to subdued steel sector scenarios, delays in LC approvals, and adverse weather conditions. Turkish buyers stayed relatively active in restocking despite low rebar sales, aiming to maintain inventory for the upcoming production cycle. They secured approximately 11-12 bulk scrap cargoes from the US, Europe, and the Baltic region.

Japanese scrap export offers softened this week following Tokyo Steel's price cut announcement and the depreciation of the JPY against the USD.

Turkiye: Imported ferrous scrap prices in Turkiye rose by $3/t w-o-w, with multiple bulk deals driving demand despite low rebar sales, particularly for exports. According to BigMint's bulk vessel tracker, 18-20 deep-sea bulk vessels were booked for late April and early-May shipments.

Short-sea scrap supply was tighter compared to deep-sea. Offers for Black Sea-origin short-sea scrap were around $375/t CFR Turkiye, but mills showed limited interest in prices above $360/t CFR. Recent short-sea deals closed at around $370/t CFR.

BigMint's assessment for US-origin HMS (80:20) bulk scrap stood at $386/t CFR, a $3/t increase from the previous week. HMS (80:20) from the US East Coast was assessed at $369/t FOB, stable.

Turkish exported rebar was at $590/t FOB, with the scrap-to-rebar spread narrowing from $213/t to $203/t.

India: In India, the demand for imported scrap is on the rise due to limited availability of scrap in the local market and an uptick in demand for finished steel. Buyers are actively procuring fresh scrap to replenish their stocks for upcoming production cycles, anticipating increased demand leading up to the elections. Several bulk orders have been placed from the US West Coast, set to arrive at Indian ports around end May-June, with average prices ranging from $407-420/t CFR.

Weekly averages show a slight decrease in shredded scrap offers from Europe, down by $1/t to $426 CFR, compared to $427 CFR the previous week. Meanwhile, offers from the US have seen a marginal increase of $1/t to $423 CFR w-o-w.

Significant transactions include the purchase of approximately 3,500 t of HMS (80:20) from Australia within the range of $401-410/t, 1,500 t of HMS (80:20) from West Africa at $395-410/t CFR, around 1,000 t HMS (80:20) from Brazil at $408/t CFR, and roughly 1,500 t of HMS 1 from the Dominican Republic and South Africa at $415-420/t CFR. Additionally, there are reports of around 2,000 t of shredded scrap from the US and UK being purchased at $422-425/t CFR.

Pakistan: This week, market activities in Pakistan remained subdued due to sluggish demand for finished steel, leading to low scrap consumption. To stimulate sales, major steel mills unofficially slashed grade 60 rebar prices by up to PKR 5,000-10,000/t. Additionally, tight cash flow issues prompted mills to operate at reduced capacity, roughly around 35-40%, to clear pending bills. Despite expectations of improved post-Eid demand, the market worsened given the current situation.

On a weekly average, shredded scrap offers from the UK/Europe decreased by $2/t to $428/t CFR, down from $430/t CFR the previous week.

Bangladesh: Bangladesh observes moderate pace in fresh scrap bookings, with rebar price revisions due to weak demand. Containerised shredded scrap prices from UK/Europe drop by $4/t to $422/t, while HMS (80:20) declines to $402/t CFR Chattogram.

Approximately 6,500-7,000 t of containerised deals closed in the last seven days, involving various grades and origins. BigMint's assessment for Europe-origin shredded scrap (containers) decreases by $4/t to $422/t, while HMS (80:20) containers drop by $6/t to $402/t. Bulk HMS offers heard at $405/t from the US, with Singapore bulk HMS at 405-408/t CFR Chattogram. Bulk vessel booked from US comprising HMS (90:10) at $403/t with PNS at $414/t on a CFR Chattogram basis. Market stable with few bulk scrap offers, slight improvement in LC situation, and steady steel market as no news of new projects reported.

Japan: This week, export offers for Japanese H2 scrap witnessed a decline, mirroring Tokyo Steel's recent pricing adjustment. As a prominent EAF steel manufacturer in Japan, Tokyo Steel's decision to reduce prices has impacted domestic scrap prices. Furthermore, the depreciation of the JPY against the US dollar worsened the downturn in market sentiment.

According to BigMint's latest assessment, Japanese H2 scrap export offers stood at JPY 51,400/tonne (t) ($328/t) FOB Tokyo Bay, down JPY 400/t ($3/t) as against JPY 51,800/t ($331/t) FOB a week ago.

Vietnam: Vietnamese buyers had shown a moderate level of interest in Japanese scrap, even though it was priced higher compared to domestic alternatives. However, reports had indicated a scarcity of domestic scrap, leading buyers to proceed cautiously and consider larger purchases carefully. A deal of around 5,000 t of H2 scrap was heard to have been concluded at $370/t CFR Vietnam recently. Current offers for H2 scrap from Japan are at $375-380/t CFR, while buyers had been submitting bids around $365-375/t.

In the domestic market, type 1 or H2 (3-6mm) equivalent scrap prices were assessed at VND 8,800-9,000/t ($347-355/t) in the southern region.

South Korea: South Korean steel mills remained subdued this week due to slow demand and ample inventories, with some mills cutting production rates. Prices are expected to remain bearish in the short term due to sluggish construction markets. Scrap inventory at eight South Korean mills increased by 1% to 872,000 t compared to the previous week, particularly in the southern region, but still below the annual average. Despite this, the market remains subdued with no noticeable scarcity.