Weekly round-up: Global scrap markets remain subdued amid weak demand pressure

• Pakistan prices soften amid declining steel demand
  
  
• Japan export prices rise on tight supply
  
  

Global ferrous scrap markets remained largely subdued during the week, with cautious buying and weak finished steel demand limiting trade activity across key regions. While tight supply and firm collection costs in exporting countries supported prices, most importing markets resisted higher levels, resulting in wider bid-offer gaps.

Major markets like Turkiye, India, Pakistan, and Bangladesh saw muted participation, while exporters such as Japan maintained firm pricing. Overall, sentiment stayed cautious, with prices mostly range-bound and showing a slightly softer bias in some regions.

Turkiye: Deep-sea imported scrap market remained largely stable through the week, with limited deal activity and muted participation from both buyers and sellers. HMS 80:20 prices were indicated around $400-405/t CFR, with US-origin offers slightly higher near $405/t, while EU/UK-origin levels were heard at $395-400/t. Tight scrap supply from the US and Europe, along with a stronger euro and firm freight rates, continued to support offer levels.

Despite firm seller expectations, mills remained cautious, targeting around $400/t CFR and delaying fresh bookings as April requirements were largely covered, leading to a clear standoff and minimal transactions. Towards the week's end, a few deals were heard at $395401/t CFR for EU/UK/US-origin cargoes, with the market remaining steady and sentiment subdued, though slight upward expectations persist for upcoming bookings.

India: The imported scrap market remained soft through the week, with slow finished steel demand and poor mill margins keeping buying interest subdued. HMS 80:20 offers from UK/Europe/Africa/Australia were largely at $380-390/t CFR, while lower levels from Congo/Brazil/Latin America were heard at $360-375/t. Buyer bids lagged at $370-378/t, Few trades were heard in week end, while shredded offers stayed at $400-410/t with bids near $390/t, widening the gap.

Market activity remained limited as mills preferred domestic scrap and adopted a wait-and-watch approach. Select deals were heard at $372-385/t for HMS and $340-345/t for LMS CFR, with prices easing slightly towards weeks end.

In the past week, around 8,000-8,500 t of imported scrap was reported into India, primarily comprising 6,500-7,000 t of HMS (80:20 and variants) from multiple origins, with the balance including bundles, sub-grade scrap, turnings, and skull material.

Pakistan: Imported scrap prices softened slightly through the week, with firm offers from UK/Europe/Malaysia meeting cautious buyer resistance. Shredded offers were at $430-445/t CFR Qasim, while buyers targeted $420-425/t. HMS, including South America-origin, was heard around $380/t, reflecting variation across grades.

Buying remained limited amid weak finished steel demand and falling domestic prices. Some deals were reported, including UK-origin shredded near $425-427/t CFR Qasim. Towards the end of the week, offers eased to $418-430/t, with deals around $425/t, as sentiment stayed under pressure.

Bangladesh: Imported scrap market stayed quiet through the week, with limited trading amid a persistent bid-offer gap. HMS prices from Australia/New Zealand/UK/Hong Kong were largely at $390-400/t CFR, while shredded offers stood at $410-420/t. PNS from Singapore/Malaysia/Australia was heard higher at $430-440/t. A few deals were reported, including UK-origin shredded near $405/t and Hong Kong-origin HMS around $395/t CFR Chattogram.

Buying interest remained cautious, with bids around $390-395/t for HMS and ~$410/t for shredded, maintaining a gap of $10-12/t. Concerns over price transparency and rising freight costs continued to restrict activity, keeping the market subdued with minimal fresh transactions.

Japan: H2 scrap export assessed around JPY 52,800/t ($333/t) FOB Tokyo Bay, while Tokyo Steel raised scrap purchase prices by JPY 500/t ($3/t) to JPY 53,000/t ($334/t), marking its third hike this month and reinforcing bullish sentiment. Despite stronger pricing, buying interest from Vietnamese mills remained cautious, with some shifting towards billet imports as a more economical alternative.

US: Domestic scrap prices edged up w-o-w, supported by tight supply and limited availability. Shredded scrap was assessed at $394/t FOB East Coast, while HMS was at $374/t FOB, reflecting steady upward pressure from constrained flows.

In exports, US HMS 80:20 to Turkiye was heard at $400-405/t CFR, with mills largely bidding around $400/t. A deal was reported at $401/t CFR, while fresh offers were expected near $405/t, though a widening bidoffer gap and cautious Turkish buying kept overall activity limited.

UAE: Domestic scrap prices softened w-o-w, with HMS 80:20 processed at AED 1,025-1,030/t ($279-280/t) and shredded at AED 1,100-1,120/t ($300-305/t), amid slower buying interest. Mills shifted to hand-to-mouth procurement, testing lower levels, while offers remained slightly higher at AED 1,040-1,050/t ($283-286/t).