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.

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.

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

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.

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.

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
Fastmarkets has clarified the specifications of its copper grade A cathode and non exchange-deliverable equivalent-grade (EQ) copper cathode premiums, to avoid any confusion regarding the deliverable status of its copper cathode assessments.
In the open consultation, Fastmarkets FOEX did not propose any changes and the feedback received was fully supportive to our current methodology. No material changes were made to the current methodology. A newly dated methodology document will be posted soon. For all Fastmarkets FOEX pricing notices and to view our methodology guides please see here.
This consultation, until which is open until June 24, 2023, seeks to ensure that our methodologies continue to reflect the physical market under indexation, in compliance with the International Organization of Securities Commissions (IOSCO) principles for Price Reporting Agencies (PRAs). This includes all elements of our pricing process, our price specifications, and publication frequency. You […]
For comments and queries, please email, indicating “PIX Pellet Nordic Index” in the subject line of the email.
The European Union Regulation (EUDR) mandates that products must be deforestation-free, produced in compliance with relevant laws, and accompanied by a due diligence statement containing precise geographic coordinates.
Fastmarkets invited feedback from the industry on the methodology for its audited lithium and spodumene price assessments, via an open consultation process between April 18 and May 17, 2024. This consultation was done as part of our published annual methodology review process.