STEEL SCRAP WRAP: Weak demand in major markets pulls down prices

Poor demand in key import markets in Turkey and Asia continued to pull steel scrap prices downward in the week ended Friday September 3. High freight costs and a lack of container ships also damped spot trading liquidity.

  • Turkish mills book handful of cargoes for requirements
  • US sees limited export transactions
  • China demand weak amid more production cuts
  • Vietnam spot liquidity limited due to holidays
  • Taiwan looks toward Japanese scrap
  • Indian prices steady in recent trades.

Turkey
Turkish steel mills booked a handful of scrap cargoes this week, but strictly to cover requirements amid poor sales of finished steel in the export and domestic markets.

Buyers were heard bidding as much as $10 per tonne lower than previous transactions, but did not manage to book any materials.

A short working week, due to public holidays in Turkey and the UK on August 30, also limited spot trading activity.

Pricing history
steel scrap HMS 1&2 (80:20 mix), Northern Europe origin, cfr Turkey.
steel scrap HMS 1&2 (80:20), US origin, cfr Turkey.

United States
The US saw limited transactions to key import markets in Turkey and Asia this week.

Pricing history
steel scrap HMS 1&2 (80:20), export index, fob New York.
steel scrap shredded scrap, export index, fob New York.
steel scrap, HMS 1&2 (80:20), export index, fob Los Angeles.

China
More production cuts announced in various parts of China have added further uncertainty to market sentiment, with buyers continuing to bid at levels far below offers for Japanese HS scrap.

Pricing history
steel scrap, index, heavy recycled steel materials, cfr east China

Vietnam
Spot liquidity was limited by a four-day holiday starting from September 2. The worsening Covid-19 pandemic also damped import demand.

Pricing history
steel scrap, HMS 1&2 (80:20), cfr Vietnam.

Taiwan
Buyers of containerized scrap were increasingly looking toward bulk supplies of Japanese H1&H2 (50:50) to fill a supply gap.

Pricing history
steel scrap, HMS 1&2 (80:20 mix), US material import, cfr main port Taiwan.

India
Prices for shredded steel scrap into India remained steady after trading activity was resumed.

Pricing history
steel scrap, shredded, index, import, cfr Nhava Sheva, India.

What to read next
Gain a competitive edge in logistics with our in-depth look into pallet prices and the factors driving market changes in 2024.
Fastmarkets has corrected its assessment of AG-FML-0007 Feathermeal, fob Alabama/Georgia, $/short ton, which was published incorrectly on Tuesday December 17, 2024. Fastmarkets’ pricing database has been updated.
China's tightened export controls on gallium and germanium formalize existing restrictions, heightening supply concerns amid ongoing geopolitical tensions.
Fastmarkets confirms it will discontinue its lithium contract assessments after their final publication date of Tuesday, December 24.
On Tuesday December 10, 2024, Fastmarkets published its MB-STE-0232 Steel scrap No1 busheling, consumer buying price, delivered mill Chicago, $/gross ton.This price is part of the Fastmarkets Scrap package. For more information on our North America Ferrous Scrap methodology and specifications please click here. To get in touch about access to this price assessment, please contact customer.success@fastmarkets.com.
Trading of the contract started on Monday December 16, 2024, on the CME Globex electronic trading platform and for submission for clearing via CME ClearPort.