Global Ferrous Scrap Market Weekly Overview

This week scrap importers remained almost silent in Turkey, US and Europe amid New Year holidays, No significant trade deals heard owing to which price assessment for US origin HMS scrap remained unchanged in Turkey. Indian buyers concluded few thin trades in containers over strong local market while importers from Pakistan and Bangladesh stood less active amid sharply rising offers. Shagang Steel in China cut scrap buying prices first time since mid of October while Japanese scrap prices remained unmoved with no price revisions from Tokyo Steel.

Turkey importers turned silent over holidays; Scrap offers remained firm – This week imported scrap offers to Turkey remained unchanged with last week assessment as the market witnessed no trade activities. The assessment for US origin HMS 1&2(80:20) remained at USD 370/MT, CFR Turkey. Markets in major scrap supplying countries are closed over holidays for Christmas and New Year and most of the participants now expect buying to resume in next week. Thus offers were very limited and no deal confirmed in this week in Turkey.

China’s Shagang Steel cut scrap purchase prices by USD 5/MT- The largest ferrous scrap consumer in China, Shagang Jiangsu Steel has cut its domestic scrap buying price by CNY 30/MT (USD 5) on 28th Dec. Shagang is now paying CNY 2650/MT (USD 407) for HMS scrap not less than 6 mm delivered to its works in China inclusive of 17% VAT. Earlier to this, the company was fetching scrap material at CNY 2680/MT (USD 412) after witnessing the total increase of CNY 550/MT in three consecutive hikes in scrap buying prices in Dec’17. At present, several construction projects in China have been halted due to New Year holidays and extreme weather conditions.

Indian scrap market observed thin trades; offers remained nearly stable – Imported scrap offers to India remained almost firm with a marginal increase in HMS offers this week. Scrap market observed limited trades at increasing prices over New Year holidays. Offers for US origin Shredded scrap in containers are stable around USD 375-380/MT, CFR Nhava Sheva while HMS scrap in containers traded at USD 345/MT from Dubai, at USD 350/MT from Australia while P&S from Europe procured at USD 365/MT, CFR. Strong local markets supported scrap importers to enquire for bulk cargoes which are being quoted around USD 400/MT However no deals for bulk cargo from Indian importers reported yet. Domestic scrap prices for HMS 1&2 (80:20) in Mumbai is assessed at INR 23,300/MT and in Chennai is around INR 23,500/MT (Basic prices, GST@18% extra).

Pakistan scrap import offers surged further; a bulk scrap vessel reported at Port – Imported scrap offers in Pakistan surged further this week by USD 10-15/MT. The price assessment for containerized Shredded 211 scrap from UK and US stood at USD 370-375/MT, CFR Qasim. Offers for Dubai origin HMS 1&2 assessed at USD 355/MT, CFR Qasim which were heard last week at USD 335/MT, CFR. In the last sale reported, an importer in Pakistan bought 1000 MT of Shredded scrap from USA at USD 370/MT but after which no significant trade activities heard. At the beginning of the week, a bulk vessel named ‘Pan Ivy’ carrying 33,020 MT scrap was reported at Karachi port in Pakistan. The vessel was booked in mid-October by Mughal Steel.

Bangladesh scrap buyers remained calm amid high offers – Price assessment for US and UK origin Shredded 211 in containers increased this week to USD 390-395/MT, CFR Chittagong for Feb ’18 shipment. Offers for HMS 1&2 assessed at USD 370/MT, CFR which have increased by USD 10-15/MT on W-o-W basis. Last week HMS 1&2 from Australia assessed at USD 357/MT level. Prices for ship breaking assessed stable in Bangladesh but the market was less viable than other competitors. Prices were at USD 440/LDT for general cargo and USD 430/LDT, CFR for tanker cargoes.

UAE scrap exporters held offers seeking clarity over VAT – UAE origin scrap suppliers remained waiting for clarity over the 5% VAT in UAE which will be imposed from 1st Jan’18.Dubai based scrap exporters were not quoting offers clearing their old orders amid lessened scrap collections and limited availability at the scrap yards. Most of them are of view that offers will rise further for scrap after VAT implementation.

Global scrap reference prices as on 30th Dec’17 –

Source: SteelMint Research