Global Ferrous Scrap Market Overview: Week-3, 2018

This week Japanese ferrous scrap suppliers remained active amid robust demand after New Year holidays.Tokyo Steel raised scrap purchase prices further upto USD 9/MT while South Korean leading EAF steelmaker Hyundai steel placed Japanese scrap purchase bid higher by USD 14/MT. On contrary to this, China’s Shagang Steel reduced scrap buying prices twice in this week by upto USD 25/MT, Also towards second half of this week, Turkish imported scrap prices fell sharply around USD 10-15/MT on W-o-W basis resulting in downward turn in imported scrap prices in the other major Asian scrap import markets. Pakistan witnessed few trades at reduced prices while importers from India and Bangladesh remained seeking for a price correction.

Tokyo Steel hiked scrap purchase prices by upto JPY 1000/MT – Tokyo Steel raised scrap purchase price by JPY 500-1000/MT at its different works with effect from 17th Jan’18. Scrap buying prices have moved up further by JPY 1000/MT (USD 9) at Tahara and Utsunomiya works and by JPY 500/MT at west Japan works like Okayama, Kyushu and Utsunomiya. Now H2 scrap fetches JPY 38,500/MT (USD 348) at largest work in central Japan-Tahara. While the same grade fetches JPY 37,500/MT (USD 339) at Utsunomiya works in north Japan, H2 bids are placed at JPY 36,500/MT(USD 330) for Okayama and Kyushu works in west Japan while for its Takamatsu Steel Center company keeps bids at JPY 36,000/MT .

Hyundai Steel raised bid for Japanese scrap purchase by USD 14/MT- South Korean leading EAF Hyundai Steel has raised Japanese imported scrap bids by JPY 1500/MT in line with the sharp hike in scrap purchase bids for Japanese monthly scrap export tender Kanto Tetsugen for Jan’18. Its latest bid put for H2 grade scrap was at JPY 37,500/MT (USD 339), FoB Japan against its last bid reported on 22nd Dec which was at JPY 36,000/MT (USD 326) FoB Japan. Japanese scrap demand expected to remain robust amid tight supply in domestic as well as exported scrap market as construction activities are at its peak in Japan.

Turkey imported scrap prices moved down sharply in recent trades – Imported scrap market witnessed several trades at reduced prices in Turkey this week. The price assessment for US origin HMS 1&2(80:20) is around USD 360-365/MT, CFR Turkey. Importers resumed March shipment booking as soon as offers showed downward correction in Turkey. In recent trade deal, TSR (Euroscrap) sold cargo to a Habas based mill consisting HMS (75:25) at USD 355/MT, Shredded at USD 365/MT Bonus at USD 370/MT, CFR Turkey for March’18. SIMS from USA sold HMS (80:20) to Ekinciler at USD 363/MT, CFR Turkey.

China’s Shagang Steel reduced scrap purchase prices twice this week – The largest ferrous scrap consumer in China, Shagang Jiangsu Steel cut its domestic scrap buying price twice by RMB 50/MT on 15th Jan and by RMB 60/MT on 16th Jan’18. Shagang is now paying RMB 2400/MT (USD 374) for HMS scrap not less than 6 mm delivered to its works in China inclusive of 17% VAT. Earlier to these revisions, the company was fetching same grade scrap at RMB 2510/MT (USD 392).In tandem with falling Rebar and Billet prices, Shagang registered consecutive price cuts for scrap purchase prices too.

Limited trade deals reported in Indian imported scrap market – Following the sharp price drop in Turkish imported scrap prices, Indian imported scrap offers moved down by around USD 5-10/MT on W-o-W basis. Offers from USA for Shredded scrap in containers assessed at USD 370-375/MT, CFR Nhava Sheva. Most of the participants remained seeking for further price drop amid limited trade deals reported in Indian imported scrap market this week.Domestic scrap prices for HMS 1&2 (80:20) in Mumbai is assessed at INR 23,500/MT and in Chennai is around INR 24,800/MT (Basic prices, GST@18% extra).

Pakistan imported scrap prices fell in recent trades – Imported scrap prices in Pakistan have moved down by about USD 10-15/MT on W-o-W. In the latest deals reported in containers, around 3000-4000 MT Shredded scrap from USA sold in the range of USD 367-370/MT, CFR Pakistan levels. Few more deals for Shredded scrap were also heard to have concluded at USD 365/MT, CFR Pakistan. Trade sources mentioned that weakening scrap prices in global market have resulted in falling offers for Pakistan as well. Pakistan scrap importers thus remained active with strong demand again this week.

Bangladesh importers preferred domestic scrap – In Bangladesh, scrap importers remained seeking for fall in imported scrap offers and remained away from booking in this week. Latest imported scrap offers from major suppliers moved down by USD 5-10/MT in Bangladesh. Offers for Shredded 211 from USA and Australia are being quoted at USD 390/MT, CFR Chittagong. Offers for containerized HMS 1&2(80:20) from UK are around USD 360/MT, CFR. Prices for ship breaking assessed stable in Bangladesh at USD 440/LDT for general cargo and USD 430/LDT, CFR for tanker cargoes.

Global scrap reference prices as on 20th Jan’18 –

Source: SteelMint Research