- India gets demand boost from safeguard duty announcement
- Turkish prices hold firm on tight supply, higher steel demand
Global ferrous scrap offers remained positive this week, supported by tight supply, improved finished steel demand, and stronger US domestic prices. Turkiye and India saw firm prices, while Bangladesh and Pakistan remained slow due to Ramadan. Japan’s export offers rose, and Vietnam showed cautious buying. South Korea and China remained largely subdued.
Turkiye: The imported scrap market rose gradually, with HMS 80:20 prices up 2% to $381/t CFR from $375/t last week. Gains were driven by firm US-origin offers, tight supply, rising scrap collection costs in Benelux, and improved finished steel demand.
However, buying remained cautious amid a weakening lira, higher financing costs, and political uncertainty. The Turkish central bank’s rate hike further dampened aggressive buying interest.
While deep-sea trades occurred at slightly higher levels, EU-origin scrap saw mixed interest as mills selectively procured, resisting elevated prices. Sellers largely held firm, anticipating continued support from bullish US trends.
India: The imported scrap market witnessed a gradual pick-up in activity this week, especially in the western region, supported by improved finished steel sales and better sentiment after the safeguard duty announcement. Buyers showed renewed interest in UK/Europe-origin shredded, driving deals up to $385/t CFR, marking a 2% increase from last week.
Rising global offers, particularly from Europe, along with supply tightness driven by US tariffs, pushed prices higher across shredded, HMS, and PNS grades. While buyers remained price-sensitive, those with immediate needs secured short-transit cargoes. However, high freight costs and the availability of cheaper alternatives such as sponge iron limited broader interest in imported scrap.
Approximately 25,500-26,500 t of imported scrap were booked this week across various grades. This volume included around 7,000-8,000 t of HMS 80:20, transacted at $352-370/t CFR. Additionally, 6,500-7,000 t of shredded was sold at $384-387/t CFR, while 3,700-4,000 t of PNS changed hands at $375-390/t CFR. About 1,000-2,000 t of turning scrap were booked at $340-350/t CFR, alongside 1,500-2,000 t of HMS 1 at $375-387/t CFR. The rest of the volume comprised smaller lots of LMS bundle mix, HMS bundle mix, busheling scrap, tin can shredded, and HMS-PNS mix.
Pakistan: The imported scrap market remained sluggish throughout the week, despite a slight rise in prices. During Ramadan, construction activity increased, as contractors rushed to complete projects before labourers went on holiday. However, this demand boost was short-lived, while local scrap supply remained tight due to low imports and shipping delays. UK/EU-origin shredded scrap offers ranged within $385-390/t CFR Qasim, but buyers resisted beyond $385-388/t. Despite weak demand, prices rose 2% to $388/t CFR Pakistan.
With Eid approaching, market participants stayed on the sidelines, awaiting a post-holiday recovery. Traders anticipate increased bookings in April-May, but falling rebar prices may continue to pressure mill margins.
Bangladesh: The imported scrap market remained quiet, with shredded offers from the UK at $390/t CFR, up 1% w-o-w. Ramadan-related sluggishness and high prices limited buying interest. Mills avoided UK/Europe-origin material due to cost and logistics, favouring nearshore suppliers such as Australia, Hong Kong, and Singapore for faster delivery and better prices.
Some trades were reported in premium grades, including Japanese Shindachi at $392-395/t CFR and Hong Kong-origin PNS. Smaller Dhaka-based mills stayed inactive amid liquidity constraints and fiscal year-end adjustments.
Market participants expect activity to improve post-Ramadan, with stronger domestic steel demand influencing April procurement strategies.
Japan: H2 scrap export prices rose amid firm offers following the Kanto tender and a weaker yen. April shipment quotas being filled led some suppliers to pause offers. Demand from Bangladesh supported prices, while Vietnam showed cautious buying. Prices may stay range-bound due to weak Chinese cues. Tokyo Steel raised scrap purchase prices by up to JPY 1,000/t ($7/t) at Okayama, Takamatsu, and Kyushu plants, while tags at other sites remained unchanged.
Vietnam: Imported scrap demand improved slightly on construction activity and project spending, though mills stayed cautious amid weak margins. Japanese H2 offers were at $333-345/t CFR, but bids stayed below $330/t. Deep-sea interest remained low, with buyers favouring Japanese cargoes. Prices are likely to stay range-bound.
South Korea: The imported scrap market remained sluggish in mid-March amid weak demand, falling rebar prices, and low mill operations. Ferrous scrap inventories rose by 22,000 t, while imports fell to 50,713 t. Hyundai Steel led with a 36.7% share; special steelmakers accounted for 44.8%, slightly down from early March.
US: Ferrous scrap export offers rose by up to $5/t w-o-w, supported by tight prime scrap supply and steady mill demand. Export buyers turned aggressive amid limited availability, while US domestic prices surged in March.
China: Shagang Steel has cut scrap purchase prices by RMB 30/t ($4/t) across all grades, effective 19 March, marking its first reduction since January 2025. Revised HMS (6-10 mm) tags stood at RMB 2,370/t ($328/t) with 13% VAT.
Article From Bigmint
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