Earlier this week, observably older deals were shared in Turkey’s import scrap market while the holiday mood was not yet really over. Despite the high availability in the market before the Feast of Sacrifice holiday, sellers were observed to have taken a step back and were resisting the lower bids from Turkish mills. Market sources reported that collection prices at EU-based scrap export yards were at around €250/mt DAP, but scrap flow was very slow. “Especially for shredded scrap, my people tell me that domestic mills’ procurement prices are almost equal to $375/mt CFR Turkey. Hence, shredded tonnage is on the low side at European export yards,” a seller commented. A German sub-collector also mentioned that some local mills have corrected their domestic scrap purchase prices upward this month. Another scrap exporter agreed that flow to yards was slow, adding, “Sea freight is increasing because people want to buy or sell everything before the 90 days of delay for Trump’s tariffs end. Therefore, finding vessels is getting problematic, not just from the EU but also from the US.”
While the latest ex-Baltic scrap booking done by Turkey indicates a price decline, the sentiment in the market has largely changed after the US-China trade deal and the subsequent changes in the euro-US dollar exchange rate. SteelOrbis had already mentioned that the local scrap markets in the US and EU regions were stronger than initially expected, providing some support to scrap sellers since the beginning of the current week. “European scrap sellers have increased their offers by at least $5/mt as of today, after the euro hit 1.15 against the US dollar. They were asking for $340/mt CFR yesterday,” a European scrap supplier mentioned on June 12. Another source reported, “Ex-US cargoes are now offered at $350/mt CFR Turkey.” Despite the strengthening sentiment on the scrap supplier side, with ex-US scrap sellers largely remaining out of the market, the local rebar market in Turkey is showing little recovery after the holiday. A trader told SteelOrbis they are still monitoring the situation, trying to avoid risks despite their depleted inventory levels. He commented, “There is an expectation of a cut in interest rates among economists. If the Turkish lira depreciates a bit and scrap moves up, this may be the foundation we expected to replenish our [rebar] stocks, not much but a little.”
Under the current conditions, the deep sea benchmark HMS I/II 80:20 scrap prices in CFR terms have remained stable week on week. The prices are now 0.37 percent lower month on month in the deep sea segment, with prices being in the range of $336-341/mt CFR.
This week, US ferrous scrap prices for June delivery in the Northeast settled sideways versus May prices, which were $30-40/gt ($30-41/mt) lower. US ferrous scrap prices for June delivery in the Ohio Valley settled sideways versus May prices, which were $30-40/gt ($30-41/mt) lower. Continued reports of high inventory and limited domestic demand were offset by reports of improved market sentiment in June following US President Donald Trump’s announcement on May 30 that he would double Section 232 steel and aluminum tariffs from 25 percent to 50 percent, effective June 4. In response, several US steel mills announced price increases of $20-100/mt, effective, June 9.
The Italian scrap market has been quite sluggish this week. Although scrap supply is relatively decent thanks to the price increases in the last two weeks, scrap demand from Italian mills is not brilliant and prices have gradually stabilized as expected. Nonetheless, uncertainty remains.
The local scrap market situation in Poland has remained uncertain this week, with contrasting information coming from market sources. Scrap purchase prices from mills are - overall - higher than the prices that export yards are paying and this is causing a reduction in scrap flows for export. Prices at ports have been reported at around €270-275 DAP for HMS I, and around €250/mt for HMS II.
Local prices in the German scrap market have followed different trends compared to the levels recorded during the previous month.
Some producers have kept their price levels unchanged for their scrap purchases in June, while others have chosen to increase them by €5/mt or €10/mt. The market fundamentals have not undergone any modifications.
Purchase prices at ports are reported at around €250/mt DAP for HMS I/II 80:20, while mills are willing to pay higher levels.
Japan’s Kanto scrap export tender was closed with another price decrease on June 11 on Japanese yen basis, though the dollar-based price moved up slightly. Market sources report that the cargo will be shipped to Bangladesh, with the total tonnage being 15,000 mt.
In the Kanto export tender, the highest bid was at JPY 42,267/mt FAS, JPY 122/mt lower than last month. The dollar-based price has increased from $291/mt to $294/mt FAS, taking into account the changes in the Japanese yen-US dollar exchange rate. The FAS price translates to JPY 43,267/mt FOB or $301/mt FOB, up $2/mt as compared to last month as the Japanese yen has appreciated against the US dollar.
The leading Japanese EAF-based steel producer Tokyo Steel has opened its third satellite scrap yard in Tokyo Bay and announced its first purchase prices for the yard, which will be effective as of June 13. Tokyo Steel had opened two previous satellite yards in Nagoya and Kansai in 2022 and 2024, respectively, to secure scrap tonnages.
Tokyo Steel’s H2 grade scrap quotations in Tokyo Bay yard have been announced at JPY 41,000/mt or $285/mt. As a result, the general range for H2 grade scrap prices has remained at JPY 38,500-41,500/mt ($268-289/mt) depending on the mill.
Import scrap prices for Taiwan have declined over the past two weeks. Market sources report that cheap import billet prices have been exerting pressure on both the finished steel and scrap segments.
Offers for ex-US HMS I/II (80:20) scrap in containers to Taiwan have been in the range of $295-303/mt CFR, as compared to the $302/mt CFR recorded on May 30.
Japanese H1/2 (50:50) scrap bulk cargoes have been offered at $316-321/mt CFR, compared to $323/mt CFR Taiwan on May 30.
Vietnam’s import scrap market has recorded small changes over the past two weeks. Over the past week, offers for Japanese H2 scrap to Vietnam have declined slightly on the lower end by $5/mt to $320-330/mt CFR, while ex-US bulk HMS I/II 80:20 scrap offers to Vietnam have remained unchanged at $345-350/mt CFR.
Trade activity in Pakistan’s import scrap market has been muted this week, with the Eid holiday curbing participation from both buyers and sellers. At the same time, this ongoing inactivity has contributed to a sustained drop in prices and a lack of buying interest. According to sources, a slow recovery is anticipated following the holiday, as many mills are not expected to resume production until next week. Offers for ex-Europe/UK shredded scrap in containers have been voiced mainly at $375-380/mt CFR against $380-385/mt CFR last week, though, according to sources, most bids have been reported at $370-372/mt CFR, versus $375-378/mt CFR last week, with only a few deals for small quantities reported to have been signed at these levels. In the meantime, local prices of scrap equivalent to shredded in Pakistan have settled at around PKR 140,000/mt ($495/mt) ex-warehouse, mainly the same as last week. Besides, the tradable level for local 10-12 mm rebar of grade 60 has been heard at PKR 235,000/mt ($832/mt) ex-works.
Cautious sentiment has persisted in Bangladesh’s import scrap market following this week’s price declines in the containerized scrap segment, with many buyers remaining on the sidelines after the holiday. Specifically, import scrap prices have declined by at least $5-10/mt over the past two weeks, but the broader market has shown little appetite for new scrap purchases. According to sources, most offers for shredded scrap in containers from the EU and Australia have been voiced at $375/mt CFR against $380-385/mt CFR two weeks ago. Besides offers for ex-EU and ex-Australia HMS I/II 80:20 scrap have been heard at $360/mt CFR and $355/mt CFR, respectively. In the bulk segment, indicative prices for ex-Japan H2 scrap have settled at $355-359/mt CFR, following Japan’s recent Kanto scrap export tender for approximately 15,000 mt of scrap booked by Bangladeshi mills at JPY 42,267/mt FAS, reflecting a decrease of JPY 122/mt month on month. However, the dollar-based price increased from $291/mt to $294/mt FAS, including the changes in the Japanese yen-US dollar exchange rate. The FAS price translates to JPY 43,267/mt FOB or $301/mt FOB, which means around $361/mt CFR.