Global ferrous scrap markets witnessed contrasting trends this week in both major scrap markets, Turkey and Japan. Turkey-based importers continued scrap bookings witnessing 7-8 cargoes sold at increased prices. While Japan’s monthly scrap export tender concluded for June fetched bids marginally lower on monthly basis in Kanto region. Tokyo Steel cut domestic scrap purchase prices twice this week at Utsunomiya works. South Korea’s Hyundai Steel slashed bids for all grades of Japanese scrap by USD 5/MT. Indian scrap market remained flat with expectations for a pickup in the activities post-Ramadan. Taiwanese scrap prices rebounded back with rising inquiries in a spot market. Pakistan’s currency depreciation affected local steel prices while Bangladesh observed lull in activities on Eid holidays.
Imported scrap prices in Turkey move up in recent deals – Turkey’s scrap importers booked considerable scrap volumes this week following which prices moved up successively for a second week by USD 8-10/MT on W-o-W. Latest price assessment for US origin HMS (80:20) moved up to USD 355-356/MT, CFR levels. Price deferential between HMS 1&2 and Shredded remain widened upto USD 10-12/MT on strong demand for high-grade scrap in deals concluded from USA in mid-week.
In recent trades concluded, a steelmaker based in Iskenderun region booked a Northern American cargo from a leading supplier containing 50,000 MT scrap comprising 15,000 MT HMS 1&2 (90:10), 15,000 MT Shredded and 20,000 MT of P&S scrap at an average price of USD 367/MT, CFR. And a Baltic supplier sold a cargo to Marmara region based importer ICDAS comprising 7,000 MT of HMS 1&2 (80:20) at USD 348/MT and 20,000 MT of Shredded at USD 362/MT, CFR Turkey
Japan’s monthly Kanto scrap export tender receives lower bids – Kanto Tetsugen’- monthly ferrous scrap export tender concluded on 13th June. The average bids for June’18 recorded at JPY 34,000/MT (USD 309), FAS. On monthly premises, bids have edged down by JPY 245/MT (USD 2) M-o-M as against the average bids fetched at JPY 34,245/MT (USD 311) in May’18. In the June’18 auction, 10,000 MT of Japanese H2 scrap was awarded through winning bids placed.
Tokyo Steel slashed purchase price twice this week – Tokyo Steel announced two successive price cuts w.e.f. 15th and 16th June respectively by JPY 500/MT (USD 5) for domestic scrap at Utsunomiya work in Kanto region while prices remain unchanged at other four works in Japan. Now H2 scrap fetches at JPY 36,000/MT (USD 327) for Utsunomiya and JPY 35,500/MT at Tahara works. Tokyo witnessed price cut after almost two months’ time at Utsunomiya.
East Asian prices declined further as a Hong Kong based supplier sold containerized 3,000 MT of HMS 1&2 (80:20) at USD 344/MT, CFR Vietnam. Vietnamese buyers are shifting towards Hong Kang and Japan as recently Chinese Govt. cracked down smuggling of scrap and it has placed stricter regulations on scrap export.
South Korean Hyundai Steel cut bids for Japanese scrap by USD 5/MT – Hyundai Steel slashed bids for Japanese scrap for this week following declining domestic scrap prices in Japan. Now the bid was assessed at Yen 33,500/MT (USD 305) against its last bid made in the beginning of June at JPY 34,000/MT. while latest bids for medium grade scrap like HS and Shredded assessed at JPY 37,500/MT (USD 341) and for high-grade scrap Shindachi Daichibara (SB) at JPY 40,500/MT (USD 368) on FoB Japan.
Hyundai Steel booked 48,000 MT US origin HMS 1 at USD 357.5/MT and Dongkuk Steel recently contracted for bulk US origin HMS 1 scrap cargo for 32,000 MT for August delivery at USD 357.5/MT, CFR. South Korean domestic scrap prices have moved down further this week. As major steelmakers like YK, Hyundai, Daehan, Welcome and Korea Steel have slashed prices by KRW 15,000-20,000/MT (USD 14-19) amid considerable inventories and slow demand.
Indian scrap importers likely to resume bookings in coming days – Indian scrap market remained almost flat this week, however, inquiries gained momentum. Most of the participants are expecting for corrections in the domestic markets in coming few weeks and scrap bookings likely to resume again as very less volumes have been booked in last two months’ time. Price assessment stood almost stable and very limited trades have reported in the market.
Price assessment in containers for Shredded from UK and USA stood stable at USD 380-385/MT while South Africa and Dubai origin HMS 1 assessed in the range of USD 370-375/MT on the CFR Nhava Sheva basis. West African and European HMS assessment stood in the range of USD 345-355/MT, CFR depending on the quality of scrap in containers.
Amid slowdown in buying inquiries domestic scrap prices had moved down by INR 500-800/MT in almost all major regions in the beginning of week however rebounded back towards week close, HMS (80:20) prices in Mumbai assessed at INR 25,700-25,900/MT (down INR 800 W-o-W), in Chennai INR 25,800-26,000/MT (down INR 500 W-o-W) these are basic prices, GST @ 18% extra.
Pakistan’s domestic steel prices spike amid Currency depreciation – Opening of the week started with a sharp devaluation of Pakistani Rupee (PKR) by almost 4% as the exchange rate PKR/USD moved up to 119-120 as against 115-116 earlier. As an impact of sharp currency devaluation and firm sentiments in the domestic market, local billet, rebar and domestic scrap prices in Pakistan have moved up sharply by PKR 2000-2500/MT (USD 17-21) on W-o-W.
Imported scrap offers inch up by USD 3-5/MT on W-o-W as price assessment for Shredded scrap from UK and USA stood in the range of USD 380-385/MT, CFR Port Qasim. HMS 1&2 (80:20) scrap from UAE and South Africa assessed at around USD 365-370/MT, CFR Qasim. On Eid Holiday mood activities remained slow and no bulk offers were heard. Now the worries have started for the negotiation of the document on new devalued PKR and importers are likely to return to the market after Eid holidays after analysing the effect of currency devaluation.
Bangladesh scrap importers remained away from bookings – Bangladesh domestic steel markets remained almost flat this week on religious festive holidays. Offers from UK/USA shredded slightly moved up and assessed in the range of USD 390-395/MT, CFR and P&S assessed at around USD 395/MT levels. HMS 1&2 from Brazil at around USD 375-380/MT, CFR and HMS 1 assessed at around USD 385-390/MT, CFR from Brazil and UAE.
Local melting scrap prices assessed at BDT 36,500-37,000/MT, including 15% taxes. Ship cutting markets witnessed firmer sentiments and prices assessed at USD 430/LDT for general dry bulk cargo, USD 435/LDT for tanker cargo and USD 450/LDT for containers respectively on CNF Bangladesh basis.
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