Weak demand in the global scrap market pulled spot prices down further. Very limited activities observed in major markets this week as many of the participants haven’t resumed back trading activities in a full-fledged manner. Offers showed marginal correction in Turkey, Taiwan and Vietnam however prices in Indian subcontinent remained more or less stable amid very limited activities. Japan’s domestic scrap market remained silent, however, a sudden rise in JPY against USD could support export offers after reopening next week. China’s Shagang steel kept scrap prices stable however lowered finish steel prices for early January delivery.
Turkey imported scrap prices down on weak demand – Turkish scrap buyers stand majorly away from bookings amid anticipation of a further drop in prices. Rising Shredded scrap inventories with US east coast suppliers likely to put it under pressure further. Price expectations from few steel mills in recent bids presented for European HMS 1&2 (80:20) stand in the range of USD 275-280/MT, CFR. SteelMint’s HMS (80:20) scrap price assessment falls at around USD 285-287/MT, CFR for US origin as against USD 292-293/MT, CFR last report. While assessment of HMS 1&2 (80:20) from Baltic origin moved down at around USD 280/MT, CFR.
China to restrict steel scrap imports from July’19 – China’s various government bodies jointly issued a notice on the adjustment of the Catalogue of Imported Waste Management, which will move 8 kinds of solid wastes such as steel scrap, copper scrap and aluminum scrap from ‘The Catalogue of Non-restricted Imported Solid Wastes Usable as Raw Materials to the Catalogue of Restricted Imported Solid Wastes usable as Raw Materials’, taking effect from July 1, 2019.
China’s largest scrap consumer, Shagang Steel kept scrap purchase prices stable at RMB 2,570/MT (USD 374) inclusive of 16% VAT for HMS (6-10 mm thickness) in Zhangjiagang on limited availability. However, scrap prices could correct in upcoming days on falling finish steel prices.
Japan’s domestic scrap market awaits for Kanto Tender next week – Japan’s leading EAF steel mini-mill Tokyo Steel kept prices unchanged after last price cut on 26th Dec’18. Domestic market remained almost closed throughout this week on the New year celebration. Japanese yen continues appreciation as against USD in last two weeks’ time. USD/JPY stands at 108.5 today against 111 levels on 22nd Dec’18. H2 scrap prices stand stable at JPY 31,500/MT (USD 290) for Utsunomiya plant and JPY 30,500/MT for Tahara works. Participants are waiting for next months’ Kanto tender for more clarity on prices.
South Korean domestic scrap prices up on falling inventories – As per Steel Daily report, leading steelmakers in South Korea raised domestic scrap prices by KRW 10,000-20,000/MT (USD 9-18) this week. Participants are hopeful for a further rise next week on falling inventories however, steelmakers are waiting for more clarity as they pay attention to how this sudden upturn in South Korea will affect East Asian markets.
Vietnamese scrap imports subdued – Vietnamese trading was subdued amid slow restart after New Year holidays. Price assessment stands stable for HMS 1&2 (80:20) at around USD 316-317/MT, CFR Vietnam from the USA and Europe. Hardly any new offers from Japan and Hong Kong heard in this week.
Taiwanese scrap offers continue downtrend – Price assessment for USA origin HMS (80:20) stands at around USD 275-280/MT, CFR Taiwan in containers, inch down as against the last week’s report at USD 280-283/MT, CFR. However, no major deal reported.
Indian imported scrap offers stable, minor trades reported – Indian imported scrap market observed improved sentiments as against last week. Prices remained firm in minor trades reported, however, offers seem marginally corrected to encourage buying. Trade sources believe that enquiries and activities to gain momentum further next week. Domestic scrap prices exhibited a mixed trend on dull domestic fundamentals.
SteelMint’s assessment for containerized Shredded from the UK and Europe stands at around USD 320-325/MT, CFR Nhava Sheva. Few trades for European Shredded were reported at around USD 325/MT, CFR basis. Middle East origin HMS is being offered in the range of USD 320-325/MT, CFR and the assessment of West African HMS stands at USD 305-310/MT, CFR.
Pakistan imported scrap prices down, local steel prices lack clarity – Offers for containerized Shredded 211 from Europe and UK heard in the range USD 315-325/MT, CFR Qasim. Containerized Shredded from EU/US sold at around USD 315/MT, CFR. Dubai origin HMS 1 was being offered in the range of USD 320-325/MT, CFR Qasim. Local scrap equivalent to Shredded assessed at around PKR 57,000-57,500/MT, ex-works. Few furnaces have resumed back operation to recover losses following which supply side is growing and local steel prices are coming under pressure.
Bangladesh turns optimistic post general election – Bangladesh observed no change in the ruling party in general election concluded on 30th December. This has turned sentiments positive with rebound in local scrap and rebar prices. Participants are hopeful for a lift in finish steel prices with a resumption of construction projects in the near future. Following which imported scrap enquiries increased this week. Few offers for containerized Shredded 211 assessed in the range of USD 340-345/MT, CFR Chittagong from UK and USA origin. While assessment of HMS 1 and P&S stands at around USD 330/MT and USD 345-350/MT, CFR.
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