This week observed upturn in global imported scrap prices with increasing demand in Turkey and Indian subcontinental markets. Scrap suppliers in USA, EU and UK raised offers for high grade scrap amid tightened availability. Japanese scrap prices stabilized with slowdown in demand this week while Tokyo Steel cut scrap prices at its Utsunomiya plant. South Korean Hyundai steel purchased premium Japanese scrap from spot market skipping bidding for it. China’s Shagang steel cut scrap prices amid weakening finish steel demand. Taiwan scrap prices corrected downward on weak demand while Vietnamese market remained subdued for more clarity on global prices.
Japan’s Tokyo Steel cuts scrap purchase price at Utsunomiya works – Leading EAF steel mini-mill – Tokyo Steel has cut scrap by JPY 500/MT (USD 5) at Kanto region based works i.e. Utsunomiya, keeping prices unchanged at other plants. Now it fetches H2 at JPY 37,500/MT (USD 338) at Utsunomiya and at JPY 36,500/MT for largest works in central Japan-Tahara. The steelmaker has witnessed first price cut in last two and half months period at its Utsumnomiya plant. However, Japanese domestic scrap prices remained almost flat and exports remained sluggish amid high prices.
South Korean Hyundai Steel books high grade Japanese scrap – Hyundai Steel has changed its method of buying Japanese scrap to negotiating individually rather than bidding for it. It has contracted for 20,000 MT premium ferrous scrap in the spot market. HS grade scrap contract prices heard at JPY 40,500/MT (USD 366), FoB Japan. Amid disparity between price expectations of Japanese scrap supplier and bidding levels the steelmaker has skipped bidding again this week. Hyundai seems not interested in buying H2 at current levels of JPY 35,500-36,000/MT (USD 320-325), FoB. However, South Korean domestic scrap market remained flat this week.
China’s Shagang Steel cut scrap purchase prices by USD 7 – After witnessing sharp price hike by about RMB 350/MT (USD 51) in a months’ time, Shagang Steel has cut scrap purchase prices by USD 7/MT following recent downfall of rebar futures and slowdown in finish steel demand amid growing pessimistic mood in the market this week. Shagang is now paying RMB 2,640/MT (USD 387) inclusive of 17% VAT for HMS (6-10 mm in thickness) delivered to its headquarter works situated in Zhangjiagang province in China, down RMB 50/MT as against last report of RMB 2,690/MT. However, in the long term a big decline in scrap prices lacks a solid basis.
Turkish scrap prices move up on recovery in the demand – Turkey based buyers have turned active after remaining out of the market for short period. According to SteelMint’s assessment, the price assessment for USA origin HMS (80:20) move up by USD 10-12/MT W-o-W at around USD 312/MT, CFR Turkey. In a recent deal, Benelux origin cargo comprising 18,000 MT of HMS 1&2 (75:25) and 7,000 MT of P&S was booked at an average of USD 314/MT, CFR Turkey. The premium for HMS 1&2 (80:20) scrap for USA over European origin stands at USD 8-10/MT. Lira depreciated again after recovery to 6.02 levels a week ago to 6.54 levels today. However, few buyers were waiting for a clearer picture to emerge of the finished steel market before buying which remains still bearish.
Indian imported scrap prices climb following global upturn – Indian scrap importers have observed positive sentiments in last two weeks’ time on sharp rise in local scrap and sponge prices. Offers for containerized Shredded from UK/Europe and USA suppliers are being quoted at USD 350-360/MT, CFR Nhava Sheva. Few trades for HMS 1 from Dubai and South Africa sold at USD 345-350/MT, CFR. While price assessment for HMS 1&2 (80:20) stands at USD 335-340/MT from UAE and UK. Indian Rupee has weakened against USD to 71 levels depreciating 1% W-o-W which could result in turning imports too expensive.
Domestic scrap prices moved up in all major regions further amid increased semis prices and currency depreciation. Local HMS 1&2 (80:20) prices assessed at INR 25,800-26,000/MT (USD 364-367), up INR 200-300/MT W-o-W in Mumbai, while prices observed sharp rise by INR 2000/MT at central region to INR 29,000/MT levels ex-work basis, GST @ 18% extra.
Taiwan imported scrap prices inch down on slow demand – Price assessment for US origin HMS (80:20) stands at USD 319/MT, CFR Taiwan in containers. Demand continues to remain slow and very limited trades heard in the market.
Vietnam scrap market subdued for more clarity – Vietnamese imported scrap market remained slow in scrap bookings. Southern region based steel mills were offered HMS 1&2 (80:20) from USA, EU for bulk, around USD 345-350/MT, CFR. While Northern steelmakers continued buying containerized scrap from Japan and Hong Kong in limited quantity. Prices from Japan moved up at USD 360-365/MT, CFR for H2, thus buyers remain in ‘wait and watch’ mode in the market.
Bangladesh and Pakistan markets likely to resume activities shortly – Pakistan & Bangladesh have observed slow start after EID holidays as activities remained subdued in local markets. Shredded 211 offers from the UK/Europe yards heard in containers at around USD 360-365/MT, CFR Bangladesh and from recyclers in UK/USA at USD 350-355/MT, CFR Pakistan. Buying interest still remains below by USD 5-10/MT than current offers however, with improving global prices these buyers might have to raise prices further.
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