Global scrap markets witnessed downtrend on thin trades concluded this week in Turkey. Hyundai Steel mill abandoned bids for Japanese scrap for the 2nd consecutive week amid massive rebar production cuts in South Korea. Japanese domestic market observed firm sentiments on the improved demand with another price hike announced by Tokyo Steel mill for domestic scrap delivered to its Utsunomiya work. On the other hand, Asian markets witnessed subdued buying interest for imported scrap with downward price corrections. Taiwanese imported and Chinese domestic scrap prices plunged marginally on weakened sentiments.
Japanese domestic scrap prices remain strong – Japanese scrap market observed improved scrap buying this week. H2 scrap export prices assessed in the range of 35,000-36,000/MT (USD 320-329) FoB for Kanto region. Tokyo Steel announced a hike in purchase prices for all grades of scrap by JPY 500/MT (USD 5) at Utsunomiya work based in Kanto region w.e.f. 23rd May’18 while the prices remain unchanged at other four works in Japan. Now H2 scrap fetches at JPY 36,000/MT (USD 329) for Utsunomiya. While the price gap between Kanto region and Western region widened to JPY 4,500/MT (USD 40) for H2 in Japan.
South Korean Hyundai Steel did not bid for Japanese scrap again – Hyundai Steel abandoned its bids for Japanese scrap imports successively for the 2nd week amid the mismatch between bids and seller’s expectations. Sharp fall in the finish steel demand since last few months has resulted in the aggressive production cuts for rebar from South Korean steel mills and Japanese scrap buying interest remain subdued. Hyundai Steel plans to cut rebar production by 60,000 MT by June’18 amid excessive inventories and critical deficit in South Korea. Also, scrap inventories with Hyundai steel are reported at 700,000 MT which would be sufficient for upcoming two months.
Domestic scrap prices in South Korea increased by upto KRW 25,000-30,000/MT(USD 23-28) in past two weeks are likely to remain stable now amid oversupply situation on falling scrap demand amid heavy rebar production cuts in South Korea.
China’s Shagang Steel slashed prices by USD 10/MT W-o-W – Amid lack of upward momentum in demand for finish steel and ample scrap inventories in hand. Shagang is now paying RMB 2,340/MT (USD 366) inclusive of 17% VAT for HMS (6-10 mm in thickness) delivered to its headquarter works situated in Zhangjiagang province. While it rolled over the prices for its long steel products for shipment in late May. Following Shagang’s lead, scrap prices in other provinces like Anhui, Shandong and Fujian moved down by CNY 30-60/MT (USD 5-10) in China.
Imported scrap prices in Turkey moved down by USD 7-8/MT W-o-W – Turkish currency (Lira) hit a new record low this week. USD/TRY exchange rate fell further due to the political uncertainty in the country created by the calling of early elections to 4.72 today as compared to 4.52 a week ago.
Price assessment for US origin HMS (80:20) dropped to USD 340-341/MT, CFR Turkey as against last weeks’ report of USD 347-348/MT, CFR. Few steelmakers having urgent requirement of scrap are buying scrap actively. While most of the buyers are now interested for HMS 1&2 (80:20) at USD 330-335/MT, CFR levels.
In the recent deals concluded, a Marmara region based importer booked a Baltic cargo (ex-Poland) from a UK based merchant comprising 16,000 MT HMS 1&2 (80:20) at USD 338/MT and 4000 MT Bonus at USD 348/MT, CFR.
Indian scrap importers remained eyeing towards price corrections – Buying interest for containerized imported scrap remained subdued on the effect of currency depreciation and concerns over arriving monsoons in India. However, towards the closing of the week prices have moved down by USD 7-10/MT W-o-W.
Price assessment in containers for Shredded from UK/Europe stood at USD 375-380/MT while offers from USA were quoted in the range of USD 378-382/MT, South Africa and Dubai HMS 1&2 assessed at USD 370-375/MT on the CFR Nhava Sheva basis. Offers for PNS were heard around USD 385/MT, CFR. 2-3 bulk mix scrap cargoes which were booked during last 10-15 days from USA at around USD 385-390/MT, CFR Kandla reported this week. While West African and European HMS assessed in the range of USD 345-360/MT, CFR depending on the quality of scrap.
In another development, Krishnapatnam port (KPCL) facility received permission to offer scrap imports to India.
Domestic scrap prices witnessed an increase in most of the regions this week. HMS (80:20) prices assessed today at INR 27,400/MT (Down INR 300 W-o-W) in Mumbai and INR 26,700/MT (stable W-o-W) in Chennai.
Pakistan ferrous scrap importers less active amid electricity supply cuts – Heavy load shedding to furnaces allowing them to get electricity supply only for 12-14 hours per day from 20 hours earlier has affected finish steel production in Pakistan. The price assessment for Shredded scrap from UK/Europe stood at USD 375-380/MT, CFR Port Qasim. While HMS 1 is being offered at around USD 370-373/MT, CFR Qasim from UAE and South Africa. Domestic ship cutting scrap prices fell PKR 1000/MT to PKR 55,500-56,000/MT including taxes ex-work Punjab while Billets and Rebar prices moved up this week in the local market in Pakistan.
Imported scrap prices moved down in recent thin trades in Bangladesh – Amid Ramadan holidays and concerns on monsoons, the buying interest from Bangladesh importers remained subdued. However, HMS 1 sold at around USD 380-383/MT from Brazil and total around 4000 MT of containerized HMS 1&2 scrap sold in the range of USD 363-368/MT, CFR Chittagong from Europe/UK. Local melting scrap prices increased by BDT 700-1000/MT and assessed at BDT 37,500-38,000/MT, including 15% taxes. Finish steel demand remained sluggish and the prices assessed stable W-o-W. Ship cutting prices assessed at USD 410/LDT for general dry bulk cargo, USD 420/LDT for tanker cargo and USD 430/LDT for containers respectively on CNF Bangladesh basis.
Leave a Reply