Major ferrous scrap markets exhibited stability in terms of prices this week. Turkish steel mills continued bookings at range-bound prices on improving sentiments in rebar markets. Suppliers in US, UK and Europe markets have exhibited very limited aggression on a positive outlook on demand in upcoming days, stronger domestic markets and tight supply. Japan’s monthly tender fetched higher bids while South Korean Hyundai steel has discontinued spot purchases expecting Japanese domestic prices to have reached short term peak. Asian markets observed limited trades this week seeking more clarity on price direction. China’s Shagang steel keeps prices unchanged for local scrap.
Turkey imported scrap prices range bound – Turkey based steel mills continued buying more cargoes for April shipments at range-bound prices and initiated May shipments towards the closing of the week. According to SteelMint’s price assessment, US origin HMS (80:20) scrap remained to USD 321-323/MT, CFR Turkey. While HMS 1&2 (80:20) of Europe origin stands at around USD 317-318/MT, CFR. Turkey’s rebar export offers increased USD 15-20/MT and assessed in the range USD 490-500/MT, FoB on improved buying interest in the market.
In a recent deal, a European cargo sold comprising 13,000 MT of HMS 1&2 (75:25) at USD 318/MT, 6,000 MT Bonus at USD 331/MT and 6,000 MT of Busheling at USD 334/MT, CFR Turkey. This cargo is scheduled for May shipment. While a Benelux cargo sold comprising 25,000 MT HMS 1&2 (75:25) at USD 317/MT and 5,000 MT of Bonus scrap at USD 331/MT, CFR Turkey.
Japan’s Kanto monthly scrap tender for Mar’19 fetches bid 5-month high – Japan’s monthly scrap tender concluded on 12th March fetched bids higher JPY 2,155/MT (USD 19.4) M-o-M hitting around last 5-month high. Total 13,200 MT of H2 scrap has been auctioned in two winning bids presented at an average of JPY 34,010/MT (USD 305), FAS against the average bid at JPY 31,855/MT (USD 288), FAS in Feb’19. Local EAF steelmakers have raised restocking activities ahead of Golden week holidays in end-April.
Tokyo Steel hiked scrap purchase price by USD 5 for few of its plants – Japan’s leading EAF steel mini-mill, Tokyo Steel has hiked domestic scrap purchase price by JPY 500/MT (USD 4.5) at three of its facilities for all grades effective from 13th Mar’19. After a recent price hike, the company pays JPY 35,000/MT (USD 314) for H2 scrap delivered to Utsunomiya plant in the Kanto the region, Tahara in the central area and Kyushu in western Japan.
Hyundai Steel discontinues spot purchases for Japanese scrap – As per SteelDaily report, South Korean leading steelmaker Hyundai steel has discontinued spot purchases of Japanese scrap staying away from bidding for it amid high prices and surge in inventories in hand. The steelmaker has decided not to pay more than JPY 32,000/MT, (USD 287) FoB Japan for H2 spot purchases at which the last contract was confirmed. The steelmaker feels that Japanese scrap prices are overvalued at the moment meanwhile, the declining profitability of steel products makes it difficult to pay high, Tokyo Steel also has stopped price hikes at Utsunomiya plant in Kanto region this week thus reports assume that Japanese prices have peaked and may come down in near terms.
China’s domestic scrap prices remain unchanged – China’s largest private scrap consumer, Shagang Steel has maintained scrap prices unchanged at RMB 2,620/MT (USD 390) inclusive of 16% VAT for HMS (6-10 mm thickness) in Zhangjiagang this week.
Vietnam imported scrap offers inch up; steel mills await clarity – Offers for bulk HMS (80:20) from US and Australia assessed stable at around USD 340-345/MT, CFR Vietnam. While Japanese suppliers are quoting bulk H2 scrap as high as USD 350/MT, CFR Vietnam. Hong Kong origin HMS (50:50) assessed at USD 335-338/MT, CFR. Containerized HMS 1&2 reported at around USD 325/MT, CFR and P&S at USD 360/MT, CFR. Indonesian buyers showed buying interest at USD 325-330/MT, CFR for Shredded.
Indian imported scrap market remains standstill on limited buying – Indian scrap importers followed a cautious approach amid weakened local semi-finish prices and limited availability offers from suppliers end this week. Domestic scrap prices in Mumbai and Chennai markets showed marginal softening by INR 200-300/MT on W-o-W basis amid appreciation of INR against USD and demand concerns in semis market. SteelMint’s assessment for containerized Shredded stand in the range USD 330-335/MT, CFR Nhava Sheva. Few minor trades heard at USD 333-335/MT, CFR but no major deal was reported. HMS 1 from Dubai assessed stable at around USD 325/MT, CFR while West African HMS 1&2 traded around USD 307-310/MT, CFR Mundra and USD 315/MT, CFR Chennai.
Pakistan’s scrap importers increase inquiries, limited trades reported – SteelMint’s price assessment for Shredded scrap inched up by USD 2-3/MT on W-o-W in the range USD 335-337/MT, CFR Qasim amid improved inquiries. Asking rates for Shredded form UK and US reported in the range USD 335-340/MT, CFR and HMS 1 from UAE assessed at USD 325-330/MT, CFR. Local steel market waits for a positive initiative from the government. According to reports, in contrast with earlier expectations, there is no rise in electricity tariff rates yet in Pakistan and it will be decided at the budget 2019-2020. While on the back of increased costing, Bala billet prices increased by PKR 1000/MT to PKR 75,000-75500/MT (USD 537-540) while rebar prices stand flat against last weeks’ report.
Bangladesh scrap buyers silent amid subdued demand – SteelMint’s price assessment for Shredded scrap remained flat W-o-W to USD 350-355/MT, CFR Chittagong. Containerized HMS 1 from Chile and Brazil reported at around USD 335-340/MT, CFR. Limited trades reported amid subdued demand in local steel market. Shipyard scrap prices assessed at BDT 37,000-37,500/MT (USD 440-447) ex-yard. Many furnaces preferred Indian Sponge iron bookings amid cost competitiveness which was reported in the range USD 325-330/MT, CNF Chittagong.
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