Global ferrous scrap market observed a stable or rising trend in almost all major markets this week. Japanese domestic offers are on a rise after 7 months on increase in Kanto tender’s winning bids, while high offers to South Asian markets kept buying activities slow.
Turkey: After witnessing sharp upward movement for the previous 5 weeks, imported scrap prices to Turkey stood stable in a couple of deep sea cargo bookings observed this week.
In last deals reported, an Aegean region steel mill booked a composite cargo bulk vessel of 30,000 MT from a US recycler, comprising of 25,000 MT HMS 1&2 (80 20) for USD 259.5/MT and 5,000 MT of bonus scrap at 269.5/MT CFR Turkey. Another steelmaker from Wes Marmara region booked mixed cargo from a supplier in USA, comprising of HMS 1&2 (80:20) at USD 260/MT CFR, Shredded scrap at USD 265/MT and Bonus scrap at USD 270/MT CFR.
As per SteelMint’s methodology, assessment of US-origin HMS 1&2 (80:20) scrap remains at USD 260/MT, CFR Turkey while the assessment of European origin HMS 1&2 (80:20) stands at around USD 254/MT, CFR Turkey.
China: After a price hiked by RMB 80/MT (USD 11) last week, China’s Shagang Steel announced two successive price cuts for their scrap procurement in just 3 days by RMB 40/MT (USD 6) and RMB 30/MT (USD 4) each.
After the 2nd price cut, price cut, Shagang Steel is paying RMB 2,710/MT (USD 386) inclusive of 13% VAT for HMS (6-10 mm thickness) delivered to headquarters works situated in Zhangjiagang north of Shanghai in China.
Japan: After keeping its bids unchanged for over 4 weeks, Japan’s leading EAF mill – Tokyo Steel has hiked its domestic scrap purchase bids by JPY 500/MT (USD 5) at all of its 5 works, effective from 14th Nov’19. This comes after 8 months of the continuous downtrend in prices during which the bids came down successively by a total of JPY 12,000-13,000/MT.
After the price hike, the company is paying JPY 22,500 /MT (USD 207) for H2 scrap delivered at Tahara plant in central region while JPY 21,500 /MT (USD197) for kayama plant.
Japan’s monthly ‘Kanto Tetsugen’ scrap export tender for Nov’19 was concluded on 12th Nov’19 in which a total of 30,100 MT of Japanese H2 scrap was awarded at an average of JPY 24,307/MT (USD 223), FAS, as compared to JPY 22,293/MT in Oct 2019, witnessing a significant rise JPY 2,014/MT (USD 18) in the winning bids after observing 7 successive falls since Apr ’19.
India: Imported scrap trades to India remained slow this week on high offers from global suppliers. No significant booking for Shredded scrap was concluded, while HMS scrap from different origins were sold at further increased prices.
SteelMint’s offers for containerized Shredded from the UK, Europe and the USA to India have inched up to USD 290/MT, CFR Nhava Sheva, however most bids remained ato or below USD 275-280 levels, thus no major trades for shredded have concluded in the recent couple of weeks.
On the other hand, Average trades for imported HMS scrap were observed, with few bookings for South African origin HMS 1 being concluded at USD 275/MT CFR, while HMS 1 from Australian origin was sold at USD 270/MT CFR. Trades for HMS 1 (no ci gi) from Dubai were also concluded earlier in the week at around USD 275/MT, while the offers for the same have now inched up further to USD 280/MT CFR. West African Origin HMS (1&2) was also sold in significant quantity USD 264-265/MT CFR Goa later in the week.
Pakistan: Imported scrap offers to Pakistan have remained mostly stable this week after several weeks of sharp uptrend in prices. Decent trades were observed even as domestic market remains in a severe slow down.
Assessment for containerized Shredded 211 scrap from UK/Europe stands at USD 290/MT, CFR Qasim, almost similar to last week’s report.
UAE origin HMS 1 (super) offers were reported to have climbed up to around USD 280-285/MT CFR, however, no buying for the same was witnessed this week, while UK and European origin HMS 1&2 (80:20) was offered at around USD 270/MT CFR.
Bangladesh: Imported scrap offers to Bangladesh marginally inched up this week, with buyers preferring HMS over shredded scrap amid limited deals being reported.
Assessment for containerized Shredded scrap from UK, Europe and North America now stands at around USD 305-310/MT, CFR Chittagong, slightly up against USD 300-303/MT levels last week report.
HMS 1 in containers from Australian and European origins increased and stand at USD 290/MT CFR Chittagong. While Brazil origin HMS 1&2 (80:20) offers are presently reported at USD 285/MT CFR.
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