Earlier this week, Turkey’s import scrap market made a sideways start in terms of prices. Some deals mentioned this week were closed from the US as prices remained in the range of $346-347/mt CFR for benchmark HMS I/II 80:20 scrap. Some rumors, denied by the mentioned parties, indicated that a couple of European scrap suppliers accepted levels $338-339/mt CFR. This created little surprise amongst market players as pressure on some sellers was building up. The number of offers in the market was on the high side, though suppliers did not yet show significant aggression in their desire to sell.
Meanwhile, market sources report that the collection prices of European scrap export yards softened a bit to €250-260/mt DAP first, then to €250-255/mt DAP. Hopes of a recovery in scrap demand when Europe returns from the holidays in September are also weakening, with sources reporting that Europe’s steel sector is facing a serious crisis.
Towards the end of the week, the resistance of buyers is observed to be softening. Although Turkish mills have concluded several deals during August, they still need to cover more ground for September shipments. Due to the high number of offers, they tried to lower their purchase prices throughout the week, but in the end they accepted that sellers were not cutting their offer prices. Increased sea freight and the euro-dollar exchange rate give little room to sellers to lower their offers and they managed to keep prices firm this week. Currently, offers shared by European scrap sellers are at around $345-346/mt CFR, with a slight discount seeming to be possible in negotiations. An ex-US scrap cargo is offered at $346/mt CFR Turkey, while a Scandinavian seller is offering at $350/mt CFR Turkey. Next week is expected to be livelier in terms of scrap bookings, with prices moving sideways in a range of $340-347/mt CFR.
Under the current conditions, the deep sea benchmark HMS I/II 80:20 scrap prices in CFR terms have moved sideways week on week. The prices are now 0.07 percent lower month on month in the deep sea segment, with prices being in the range of $340-347/mt CFR.
The weekly US scrap price outlook for September was unchanged this week at sideways to potentially lower as a result of continued declines in flat steel pricing as well as new reports that a prime scrap “overhang” continues to exist due to the paucity of August trade, market insiders told SteelOrbis.
Insiders said mills did not buy the prime scrap that local scrap suppliers had expected them to purchase during the August buy-cycle because the 50 percent tariffs on Brazilian pig iron threatened by US President Trump did not happen.
“Primes didn’t go down in August, though if the (supply) overhang persists in September, I suspect that prime scrap could decline,” a Midwest scrap insider told SteelOrbis. “I think September is looking sideways to down depending on the grade,” he added. “Primes seemed to have an overhang that could potentially push prices down in September some, while cuts seem to remain tight but sideways. Shred is looking sideways to down as it could get dragged down by primes.”
Based on a sideways to down from August for September settlement, US Midwest prime busheling scrap in the Ohio Valley could settle at or below $435-460/gt ($443-468/mt), while shredded scrap might settle at or below $375-380/gt ($381-387/mt). Ohio Valley P&S and HMS grades are seen at or below $361-371/gt ($367-377/mt) and $325-345/gt ($330-387/mt), respectively, scrap insiders told SteelOrbis.
The leading Japanese EAF-based steel producer Tokyo Steel first cut its domestic scrap purchase price by JPY 500/mt in the Kansai region on August 19, and then cut its prices further by JPY 500/mt for three more regions on August 21.
The general range for H2 grade scrap price has decreased by JPY 500/mt on the lower end to the range of JPY 37,500-40,500/mt ($254-274/mt) depending on the mill. Meanwhile, shindachi scrap prices of Tokyo Steel have moved down by JPY 500/mt or $3/mt on the lower end to JPY 38,500-42,500/mt ($261-288/mt) delivered. The prices shared in the table below are effective as of August 22.
Taiwan’s import scrap market has continued to move up this week. While the offer prices indicate small upward movements, Taiwanese players have interpreted this as more or less a stable trend. Taiwan is the only country to have recorded a rebound in scrap prices in August, but this seems to be coming to an end amid the weakness of the steel market in China, sources reported.
Over the past week, the offer prices for ex-US HMS I/II (80:20) scrap in containers have moved up by $3-5/mt to $310-315/mt CFR. Meanwhile, actual deal prices moved up from $305-307/mt CFR to $307-308/mt CFR. Offered prices for Japanese H1/2 (50:50) scrap bulk cargoes have also increased, from the range of $317-320/mt CFR to $320-325/mt CFR. “No bulk deal was done this week as mills are resisting higher offers and bidding lower as the steel market seems weak this week,” a source said.
Vietnam’s demand for scrap has recovered slightly ahead of the national holidays in the country. While prices have increased further this week, some sources in the region are not sure if the increase is sustainable and instead expect a downward correction next month. The recent price declines in China are also not expected to help the Vietnamese scrap market, exerting pressure on scrap prices.
Ex-Japan H2 scrap offers to Vietnam have increased by $5-10/mt over the past week to $315-325/mt CFR, while ex-US bulk HMS I/II 80:20 scrap offers to Vietnam have remained stable this week in the range of $350-355/mt CFR. Market sources report that Russian A3 grade scrap offers to South Korea and Vietnam are at $315/mt CFR and $310/mt CFR, respectively.
Meanwhile, the Tokyo Bay FAS-based prices for H2 grade scrap are closing the week at JPY 39,500/mt ($266/mt), unchanged as compared to the levels reported by SteelOrbis on August 8.
Trade activity in Pakistan’s import scrap market has remained muted amid ongoing currency volatility and weather-related disruptions. Heavy rains and weak construction demand have curbed new bookings, while liquidity challenges continue to dampen sentiment. Traders reported that, while several offers are available in the market, buying activity remains limited as participants adopt a cautious stance. More specifically, offers for ex-EU/UK shredded scrap in containers have settled at $380-385/mt CFR, the same as two weeks ago, with deals reported to have been done at $380-385/mt CFR levels during the past week. However, by Wednesday, August 20, most sources estimate the workable level at not higher than $380/mt CFR this week. Meanwhile, offers for ex-UAE HMS grade scrap have been voiced at $370/mt CFR, down by $5/mt over the past two weeks.
According to market insiders, Pakistan’s imported scrap market is expected to remain confined within a narrow range in the short term, with shredded scrap hovering near $380/mt CFR. A gradual pickup in mill procurement could support a modest recovery by mid-September, provided flooding subsides and the PKR shows signs of stability. Meanwhile, local prices of scrap equivalent to shredded in Pakistan have settled at around PKR 145,000/mt ($514/mt) ex-warehouse, up by PKR 5,000/mt ($18/mt) over the past two weeks. However, the tradable level for local 10-12 mm rebar of grade 60 has been heard at PKR 235,000-240,000/mt ($833-851/mt) ex-works, moving sideways since the beginning of August.
Over the past week, Bangladesh’s import scrap market has showed little activity, as ongoing monsoon rains have slowed construction work and reduced the appetite for finished steel. Steel mills have stayed on the defensive, avoiding bulk purchases and monitoring downstream demand before making fresh commitments. Most offers for shredded scrap in containers from Australia have been voiced at $370-375/mt CFR, the same as two weeks ago. Besides, according to sources, a few deals for small quantities have been signed for ex-Australia and ex-New Zealand shredded scrap at $370/mt CFR. Offers for ex-Australia HMS I/II 80:20 have settled at $345-350/mt CFR, down by $5/mt over the past two weeks. Besides, offers for ex-New Zealand HMS I/II 80:20 have been reported at $350/mt CFR. Furthermore, offer prices for ex-Hong Kong PNS scrap in containers have remained at $385/mt CFR. According to sources, with consumption muted and the outlook uncertain, most market players have chosen to hold back, causing the overall tone of the market to remain subdued.