This week observed varying price trends in major global scrap markets. Turkish scrap prices climbed up following high US scrap prices amid rising demand from steelmakers. While Japanese domestic scrap prices tumbled down by upto JPY 2000-2500/MT with two successive price cuts by Tokyo Steel. South Korean domestic scrap market continue observing dull sentiments amid ample inventories in hand. China’s Shagang steel keeps scrap purchase prices uplifted. Asian markets like Taiwan, Vietnam and Thailand continued downtrend on weak billet and rebar demand. India observed minor trades for HMS at corrected prices ahead of holidays while Pakistan and Bangladesh witnessed limited buying amid less supportive domestic market fundamentals.
Turkey importers turn active amid rising global scrap prices – Turkish scrap prices moved up with constant demand from steel mills. 3-4 bulk scrap cargo bookings were reported this week. Baltic supplier sold 30,000-35,000 MT HMS 1&2 (95:5) in a recent deal concluded at USD 342/MT, CFR for prompt cargo. While earlier this week, European cargo deal was concluded comprising 31,000 MT HMS (75:25) at USD 326/MT, CFR and 4,000 MT Bonus booked at USD 341/MT, CFR. According to SteelMint’s price assessment, USA and Baltic origin HMS (80:20) scrap stands at around USD 341-342/MT, CFR Turkey, up by USD 6-7/MT W-o-W. While HMS 1&2 (80:20) for European origin heard at USD 331-332/MT, CFR.
Tokyo steel cuts scrap purchase prices twice in a week’s time – Japan’s leading EAF steel mini-mill – Tokyo Steel has announced two price cuts resulting in total drop in prices by JPY 1000-2500/MT effective on 31st Oct and 3rd Nov this week. Prices at largest work for H2 stands at JPY 36,500/MT at largest plant Tahara and JPY 37,000/MT at Utsunomiya plant in Kanto region and Okayama plant in Western Japan. Bids for the same grade noted at JPY 36,500/MT for its Takamatsu steel center. While it booked 3000 MT imported scrap from South Korea for urgent requirement.
South Korean domestic scrap prices continue downtrend – Steel scrap inventory on major South Korean mills remain on higher side resulting in further price cuts by major steelmakers. Retailers continue to release scrap inventories rather than stockpiling them. Further possibility for price cut is anticipated in the market on falling Japanese domestic prices. Although inquires heard for Japanese H2 no deal was concluded below last weeks’ Dongkuk purchase at JPY 37,500/MT, CFR levels.
China’s Shagang Steel keeps scrap prices stable – Eastern China’s leading scrap consumer Shagang Steel kept scrap prices stable after rising by RMB 80/MT for this week. Shagang fetches RMB 2,780/MT (USD 400) inclusive of 16% VAT for HMS (6-10 mm in thickness) delivered to Zhangjiagang works. However, the steelmaker raised its finish steel prices for its November shipments.
Vietnam & Indonesia scrap prices fall further on weak finish sales – Vietnam scrap importers remained sidelines amid sufficient inventories and downstream rebar and billet prices. Prices for containerized HMS 1&2 (80:20) assessed around USD 350-355/MT, CFR, down USD 5/MT W-o-W. Hong Kong based containerized HMS 1&2 (50:50) traded at USD 335-340/MT, CFR Vietnam. Indonesian Busheling offers heard around USD 400-405/MT, CFR and UK Shredded stable at USD 360-365/MT, CFR Jakarta.
Taiwanese scrap prices continue downtrend amid weak demand – Price assessment for USA origin HMS (80:20) stands in the range USD 318/MT, CFR Taiwan in containers, down USD 6/MT as against USD 324/MT, CFR W-o-W. Offers for USA HMS (80:20) heard in the range of USD 315-320/MT, CFR. Slow finish steel demand pulls scrap prices down in East Asian markets despite strong global offers.
Indian scrap importers turned standstill ahead of approaching holidays – Amid less supportive finish steel demand, liquidity issues and availability of cheaper local scrap very thin trades for HMS scrap reported this week. Participants remain hopeful for pickup in demand after holidays.
Containerized HMS 1 from Dubai heard in the range USD 330-335/MT, CFR Nhava Sheva, narrowed down from USD 335/MT last week. West African HMS 1&2 traded in minor quantity at stable levels USD 320-325/MT, CFR Goa and Chennai. Assessment for Shredded from UK and USA remains at USD 355-360/MT, CFR but hardly any deal heard in the market. Local HMS 1&2 (80:20) basic prices assessed stable at INR 25,400-25,600/MT (USD 350-353), ex-Mumbai. Local scrap prices in the northern region moved up by INR 300-400/MT while remained stable in the Central and Eastern India.
Pakistan scrap importers slow on declined local steel prices – Around 4000 MT Containerized Shredded 211 from UK and USA sold in the range USD 357-360/MT, CFR Qasim. HMS 1 from Dubai was offered in the range of USD 335-345/MT, CFR Qasim. South African HMS assessment remains still at around USD 347-350/MT, CFR Qasim. Rise in electricity rates and liquidity issues impacted the costing for many steel makers. Following which local billet and rebar prices declined by PKR 1000-3000/MT W-o-W in Pakistan. Few small scale steelmakers might even stop their production for time being if consumption will remain low or customers won’t accept materials at higher prices.
Bangladesh observed thin trades at stable prices – Bangladesh observed limited activities as only few steel mills were active in the market. Shredded scrap offers remained stable at around USD 375/MT, CFR. South African HMS 1 was traded at around USD 361/MT, CFR Chittagong. Few buyers were looking for P&S scrap with buying interest in the range of USD 375-378/MT, CFR. Indian sponge iron export deals to Bangladesh reported at around USD 360/MT, CFR Chittagong. While Ship cutting market continued dominating sentiments with few sales reported.
Leave a Reply