Global Ferrous Scrap Market Overview-Week 45

This week ferrous scrap importers in Turkey booked several cargoes at increasing offers. Tokyo Steel raised scrap purchase bids for all works by USD 9-13/MT. South Korean EAF steel maker Hyundai Steel fetched 10,000 MT scrap at unchanged bid prices for Japanese H2 scrap. Ferrous scrap offers in India rebound while remained stable in Pakistan and Bangladesh on W-o-W basis. Chinese leading scrap buyer Shagang Steel raised domestic scrap purchase prices further.

Turkey imported scrap offers rebound on the recent trades – This week Turkish market witnessed strong buying sentiments with rebound in offer levels. Assessment for US origin HMS (80:20) stood at USD 308-310/MT, CFR. While price indices for Shredded and Bonus scrap stood at USD 315/MT and USD 320/MT respectively. In the latest trade deal reported, AIM Steel USA sold 50,000 MT cargo containing 20,000 MT HMS (90:10), 15,000 MT Shredded and 15,000 MT P&S to Ekinciler steel producer in Turkey at an average price of USD 315/MT, CFR Turkey.

China’s Shagang Steel raised domestic scrap buying bids by USD 15/MT- The largest ferrous scrap consumer in China, Shagang Steel has hiked its scrap buying prices by CNY 100/MT (USD 15) recently in order to restock higher materials before the upcoming winter season. Shagang is now paying CNY 1980/MT (USD 299) for HMS scrap delivered to its works in Jiangsu Province in China. Earlier to this, the company was fetching scrap material at CNY 1880/MT (USD 284).These prices are noted as the highest since last three years. Owing to increasing domestic demand Chinese scrap suppliers are now hesitant to place scrap export offers to overseas importers.

Tokyo Steel raises H2 scrap purchase prices at all works by USD 4-9/MT- Japan’s leading steel producer Tokyo Steel has increased its scrap buying prices on 02nd Nov by JPY 1000-1500/MT (USD 9-13) at all five works. Now H2 scrap fetches JPY 33,000/MT (USD 289) at largest work in central Japan-Tahara. While the same grade fetches JPY 32,000/MT (USD 281) at Utsunomiya and in Okayama and Kyushu works it fetches JPY 31,500/MT and JPY 31,000/MT at Takamatsu Steel Center. This is second consecutive rise the steelmaker has undergone in a week’s time.

Hyundai Steel fetches 10,000 MT H2 Scrap at earlier prices – South Korean leading steel maker – Hyundai Steel kept its bid price for Japanese H2 scrap unchanged at JPY 30,500-31,000/MT, FoB (USD 268- 272). The company managed to get 10,000 MT scrap at this price level. Most of the traders expect prices to inch up as Japan’s domestic scrap demand remains strong amid ongoing peak construction season in Japan. Offers now assessed for H2 at Yen 30,800/MT, FOB Japan and for New cutting (press) at Yen 33,300/MT, FOB Japan.

Indian imported scrap offers rise, buying subdued- Imported scrap offers to India rise over strong global demand this week, Offers for both HMS (80:20) and Shredded jumped by USD 10-15/MT on W-o-W basis. Offers for Shredded scrap for both UK and Europe origins in containers assessed around USD 330-335/MT, CFR Nhava Sheva and offers assessed for HMS 1&2 (80:20) at USD 305-310/MT, CFR Nhava Sheva for Dubai origin. Most of the market participants now anticipate offers to remain stable or slightly to lift up further ahead of increasing restocking activities in global market. Currently, HMS (80:20) in Mumbai is assessed at INR 20,800/MT and that in Chennai is around INR 20,700/MT (Basic prices, GST@18% extra).Though domestic scrap prices are up by INR 200-300/MT on W-o-W basis it is preferred higher by Indian scrap buyers. However, limited trades carried out this week again.

Pakistan steel mills actively book imported scrap; Offers to rise further – Imported scrap offers in Pakistan remained stable on W-o-W basis from buyers end. Prime suppliers indicated offers to rise up further by USD 5-10/MT on robust scrap demand from Pakistan steel mills. Current price assessment for HMS 1&2 from Dubai in containers is around USD 308-310/MT, CFR Qasim while offers for containerized Shredded scrap from UK and Europe origins at USD 330/MT, CFR Qasim. Though prominent buying interest with active market sentiments was seen in Pakistan but procuring materials at present levels is hardly expected over lesser material availability and hence offers are expected to increase. Substantial volumes of Shredded scrap in containers have booked this week from major suppliers like UK and USA at USD 330/MT levels in Pakistan.

Imported scrap offers to Bangladesh stable, Bookings limited – Price assessment for Shredded scrap in containers slightly up this week at USD 330-335/MT, CFR Chittagong. Offers for Dubai HMS stood at USD 308-315/MT, CFR While HMS from other major origins like Australia and New Zealand assessed at USD 315-325/MT, CFR Chittagong. Most of the importers and traders are in ‘Wait and Watch’ mode as the domestic market for finished goods yet to pick up as expected in Bangladesh. Increased freight charges and port congestion at Chittagong port resisted Bangladesh based steel mills from booking bulk vessels. However thin trade remained carrying out. Total five bulk vessels carrying 123,420 MT ferrous scrap arrived at berth in Bangladesh in Oct’17.

Global imported scrap reference prices as on 04 Nov’17 –

Source: SteelMint Research