Global Scrap Market Witnesses A Downturn In Price Momentum

The global scrap market has seen a downturn in price momentum because of low demand, leading to a decrease in trading activities from buyers. This had an impact on mills, which have experienced selling pressure due to an increase in inventory levels at their plants.

Factors Causing Price Movement Downwards

Here are the reasons why the global scrap market’s prices are moving downward:

Price Dips

In Vietnam, Japan-origin material has seen a dip of $10-20/ton to around $454-460/ton in Vietnam (cost and freight included CNF basis) w-o-w, while in China, the weekly traded price of steel scrap has dipped by 30-80 yuan/ton ($4-12/ton) at mainstream steel mills.

Bangladesh’s Imported Scrap 

Bangladesh’s imported scrap market has experienced a dull response, with limited inquiries and a drop in imported scrap offers for shredded (UK origin) by $10-15/ton to around $505-515/ton CFR. The US-origin heavy melting scrap has also fallen by around $15/ton to approximately $490/ton on a CFR basis. The market is expected to face a labor shortage due to Ramadan leaves ahead.

Future Outlook 

It has been announced that the UAE has extended its ban on the export of ferrous scrap for an additional six months until September 2023. This directive is expected to impact the global scrap market and limit the supply of ferrous scrap.

Insight

Traders in Bangladesh and India are eyeing the Southeast Asian region’s material as it is relatively cheaper than other regions, and the shorter distance makes it cost-effective. Meanwhile, traders are optimistic about Turkey’s imports shortly and are soon likely to book for bulk requirements post-earthquake.

Read more: Chinese Steel Industry Sees A Steady Growth In Steel Production