Global Ferrous Scrap Market Overview: Week 12, 2018

This week imported ferrous scrap prices remained stable in almost all major scrap markets. Japanese Tokyo Steel mill increased domestic scrap purchase prices by USD 5/MT at Utsunomiya work however, South Korean steel mills like Dongkuk Steel and Hyundai Steel kept bids for Japanese scrap unchanged over the concern of increasing finish steel inventories in hand. Turkey scrap price assessment remained flat with no major buying from importers. Indian importers remained silent while Bangladesh’s importers kept seeking for softening of prices amid weak domestic markets. Pakistan scrap market came at standstill post abrupt currency depreciation. While Shagang Steel cut scrap prices successively thrice amid weak finish steel prices in China this week. Imported scrap prices in Taiwan moved down slightly on dull demand.

Hyundai Steel keeps bids unchanged for Japanese scrap for this week – South Korean leading EAF steelmaker Hyundai Steel kept Japanese imported scrap bids unchanged for the period of 23rd-31st Mar’18. Its latest bids put remained unchanged for H2 scrap at JPY 37,000/MT (USD 353) which has remained flat since last three weeks while bids remained for SB grade scrap at JPY 43,000/MT (USD 411) and Shindachi Press scrap to JPY 44,000/MT (USD 420) on FOB Japan basis respectively.

Dongkuk Steel bids for Japanese H2 are JPY 500/MT higher than Hyundai Steel – South Korean steel mill Dongkuk Steel put bids for H2 grade at JPY 37,500/MT (USD 358), FoB. However, raising finish steel inventories with both Hyundai and Dongkuk Steel at around 3000 MT per day and appreciating JPY against USD have influenced these steel mills to keep bids unchanged for Japanese scrap.

Tokyo Steel raised scrap prices by USD 5/MT at Utsunomiya work – Japan’s leading mini mill, Tokyo Steel raised its domestic scrap purchase prices by JPY 500/MT (USD 5) at Utsunomiya work. While prices remain unchanged for other works like Tahara, Okayama, Kyushu and Takamatsu Steel center. Now H2 scrap fetches JPY 38,000/MT (USD 363) at largest work in central Japan-Tahara. While the same grade fetches JPY 37,500/MT (USD 358) at Utsunomiya works in north Japan.

Shagang Steel in China cut scrap prices thrice by USD 5/MT this week – China’s largest scrap consumer Shagang Jiangsu Steel group has continued cutting its scrap purchase prices again this week. Prices have reduced by total RMB 90/MT (USD 14) through three price cuts over weak finish steel prices. Shagang is now paying RMB 2,400/MT (USD 381) inclusive of 17% VAT for HMS (6mm-10mm in thickness) delivered to its works in Zhangjiagang Province in China. Also, Shagang has cut finish long steel prices by RMB 200/MT (USD 32) for late March shipments.

Turkey imported scrap prices flat on W-o-W basis – Turkeys’ scrap market continued to remain silent this week again. Price assessment of USA origin HMS 1&2 (80:20) remained flat USD 375/MT, CFR Turkey with no major deal concluded in the market. However, US east coast offers heard for HMS 1&2 (80:20) in the range of USD 379 380/MT, CFR Turkey.

Indian scrap importers turned silent this week – This week Indian imported scrap market witnessed very less activities amid less supportive local steel prices. Approaching financial year end has also resisted importers from booking scrap at high prices. Imported scrap offers slightly moved up on W-o-W basis. Shredded scrap offers from UK and USA heard at around USD 400-405/MT, CFR Nhava Sheva. Thin trade for Shredded scrap in containers last booked at USD 405/MT, CFR by Cochin based buyer this week. HMS 1&2 (80:20) from Dubai assessed at USD 385/MT, CFR Nhava Sheva. HMS 1&2 (80:20) from few UK based yards was being offered at around USD 370-375/MT, CFR. Domestic scrap prices increased by INR 300-700/MT on W-o-W basis. HMS (80:20) prices in Mumbai assessed at INR 24,600-24,800/MT and in Chennai at 25,800-26,000/MT (Basic prices, GST @ 18% extra).

Pakistan’s scrap market came at standstill post currency depreciation – In the beginning of the week, PKR depreciated by almost 7% to 118 against USD which was traded at 110.5 earlier in Pakistan. Market turned silent and kept seeking for clear direction on the impact of currency devaluation. According to sources, this will add around PKR 3000/MT (USD 25) enhancement in the cost of scrap and may hit domestic market unfavorably more than imported scrap market. Offers heard for Shredded 211 in containers in the range of USD 400-405/MT, CFR Qasim from USA and UK. HMS 1 assessed at USD 387-390/MT, CFR Qasim from UAE.

Bangladesh steel mills turned apprehensive to book materials at high prices – Imported scrap market in Bangladesh observed thin trades at increased prices this week. Shredded from South Africa sold at USD 420/MT, CFR, however, prices are likely to soften on decreased rebar prices by BDT 2000/MT(USD 24) recently. Shredded 211 scrap assessed stable at USD 412-415/MT, CFR from UK origin. While HMS 1 offers were at around USD 400-405/MT, CFR from Dubai and South Africa. Ship breaking sentiments remained firm in the four sales concluded at stable prices this week in Bangladesh.

Global scrap reference prices as on 24th Mar’18 –

Source: SteelMint Research