Year-end lull kept global scrap markets almost muted amid very limited activities this week. Prices have shown a marginal correction in China and the Indian subcontinent, however, remained more or less stable in the other major markets. Turkish buyers stood away from buying and East Asian countries did not see much inquiries for scrap as demand remained subdued. Japan’s Tokyo Steel lowered scrap prices at few works. South Korean Steel mills kept bids unchanged for Japanese scrap amid market closure. China’s Shagang steel lowered scrap purchase prices on falling finish steel prices.
Turkey observes no buying for imported scrap for this week – Turkish scrap buyers stand completely away from bookings as no deal reported again this week. Few European offers for HMS 80:20 heard at around USD 290/MT, CFR however buyer expectations remained in the range USD 280-285/MT, CFR. SteelMint’s price assessment for HMS 1&2 (80:20) from Europe stands stable at around USD 285-286/MT, CFR Turkey, and that of US origin at USD 292-293/MT, CFR.
China’s Shagang Steel cuts scrap purchase price by USD 4 – China’s largest scrap consumer, Shagang Steel reduced scrap purchase price by RMB 30/MT on falling domestic finish steel prices. Shagang is paying RMB 2,570/MT (USD 374) inclusive of 16% VAT for HMS (6-10 mm thickness) in Zhangjiagang. Domestic finish steel prices in China corrected amid a slowdown in demand.
Tokyo Steel cuts scrap prices at few works – Japan’s leading EAF steel mini-mill Tokyo Steel announced a price cut on 26th Dec by JPY 500/MT (USD 4.5) at Okayama works and Takamatsu Steel center. Revised H2 scrap price stands at JPY 28,000/MT (USD 254) at Okayama plant and JPY 26,500/MT at Takamatsu steel center while prices stand unchanged at JPY 31,500/MT (USD 285) for Utsunomiya plant and JPY 30,500/MT for Tahara works. Participants are waiting for next months’ Kanto tender for more clarity on prices as the market likely to remain less active in the first week in Jan’19.
South Korean Hyundai Steel keeps bid unchanged for Japanese scrap – Hyundai Steel kept bids for Japanese scrap unchanged at JPY 29,500/MT (USD 268), FoB as against last weeks’ report. According to reports, SeAH steel mill booked 10,000 MT of Japanese scrap in preparation of February market. The contract price remained as Shredded at JPY 36,500/MT, CFR and Shindachi scrap at around JPY 40,000/MT, CFR the same as against last weeks’ report however scrap inventories with leading steelmakers in South Korea continue lowering sharply.
Vietnamese scrap imports subdued, market turns silent – Vietnamese scrap offers moved down USD 4-5/MT on a W-o-W basis. Price assessment of Hong Kong HMS 1&2 50:50 stand in the range USD 293-295/MT, CFR and for Japanese H2 stable in the range JPY 285-290/MT, CFR. HMS 1&2 (80:20) stands at around USD 316-320/MT, CFR Vietnam from the USA and Europe.
Indian imported scrap market takes a halt – Indian imported scrap market remained silent amid year-end holidays and no major inquiries observed this week. Many of the supplying yards have already closed on seasonal concerns and remained on vacations. Although global scrap prices continued downtrend, domestic scrap prices turned up by INR 400-500/MT on lesser availability and appreciating INR. SteelMint’s assessment for containerized Shredded from the UK and Europe stands at around USD 325-330/MT, CFR Nhava Sheva. Dubai origin HMS 1 was being offered in the range of USD 318-325/MT, CFR and the assessment of West African HMS stands at USD 305/MT, CFR.
Pakistan scrap market standstill, local steel prices improve – Despite limited inventories in hand, scrap buyers remained waiting before making new purchases. With the news announcement of new construction projects under CPEC, local steel sentiments improved in anticipation of pick up in activities. Offers for containerized Shredded 211 from Europe and UK heard in the range USD 320-325/MT, CFR Qasim. European Shredded sold at around USD 322-325/MT, CFR. Dubai origin HMS 1 was being offered in the range of USD 323-325/MT, CFR Qasim. Local scrap prices in Pakistan have moved up by around USD 25-30/MT over this week on a supply shortage. Local scrap equivalent to Shredded assessed at around PKR 56,000-57,500/MT, inclusive of taxes.
Bangladesh scrap buyers turn silent ahead of the general election – Bangladesh observed closure of market activities ahead of the election scheduled on 30th Dec’18. Market observed the diminutive movement of finish steel and downtrend in local scrap and ship plate prices. Offers for containerized Shredded 211 scrap from Europe and UK reported in the range USD 335-340/MT, CFR Chittagong. While assessment of HMS 1 and P&S stands at around USD 330/MT and USD 340/MT, CFR. Indian sponge iron export offers moved down to USD 340-342/MT, CFR Chittagong as demand remained bearish.
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