Global Ferrous Scrap Market Overview: Week 49, 2019

Japan – Tokyo Steel hiked its purchase price twice in this week. One hike was only at Tahara works while 2nd hike was for all works except Kyushu.

After the second price hike, the company is now paying JPY 24,500 /MT (USD 226) for H2 scrap delivered at Tahara plant in the central region and Utsunomiya works located in the Kanto region. For H2 scrap delivered to Okayama plant and Takamatsu Steel Center, prices will be 22,500/MT (USD 207) and JPY 21,500/MT (USD 198) levels respectively. Kyushu factory’s H2 scrap purchase price remains unchanged since 26th of Nov’19 at 24,500/MT (USD 226) level.

China – After 2 successive price cuts in last week, Eastern China’s Shagang steel kept its purchase price unchanged for this week. The company’s bids for scrap procurement remain at RMB 2,730/MT (USD 388) inclusive of 13% VAT for HMS (6-10 mm thickness) delivered to headquarters works situated in Zhangjiagang north of Shanghai in China.

India – Imported scrap offers to India moved up this week following the upsurge in the global prices, while the buying activities showed a slight improvement in comparison to the previous 2 weeks, with few bookings being concluded.

Assessment for containerized Shredded from the UK, Europe and the USA to India climbed up to USD 290-292/MT, CFR Nhava Sheva, against around USD 285/MT levels in last weeks report. Few deals of shredded were concluded at USD 290-291/MT for CFR Nhava Sheva and CFR Mundra.

HMS scrap offers slightly inched up with few deals being concluded. HMS 1 from South African was sold in decent quantity at around USD 275/MT CFR Nhava Sheva,with one deal even reported at USD 280/MT CFR. Offers for HMS 1&2 (80:20) from Europe stand at around USD 267-270/MT CFR. UAE origin HMS 1 super (no ci gi) from Dubai was reported at around USD 280/MT CFR Nhava Sheva. West African HMS 1&2 (80:20) is now being offered at around USD 270/MT CFR Goa.

Pakistan – Imported scrap offers to Pakistan have observed a sharp increase this week with Suppliers increasing their offers amid limited availability of material. However, poor domestic finished steel sales coupled with temporary shut down of a few furnaces kept buyers interest very low.

Assessment for containerized Shredded 211 scrap from UK/Europe stands at USD 290/MT, CFR Qasim, climbing up by around USD 5-7/MT against the closing of last week, however not much buying has been concluded at the fresh offers, with the last major deals for shredded scrap reportedly being concluded at USD 285-286/MT. Few offers were also heard at USD 295/MT, CFR qasim levels.

HMS scrap offers to Pakistan remained out of the market from most origins, due to weak continued demand  Few offers for HMS 1 (super) from Dubai were reported at around USD 280/MT CFR Qasim, while inquiries remained limited.

Bangladesh – Imported scrap offers to Bangladesh surged up this week following stable price levels over the last few weeks on global upsurge, while trades have remained slow due to less material availability from the supplier’s side as well as low interest from buyers.

Assessment for Shredded scrap in containers from UK presently stands at USD 300-305/MT, CFR Chittagong up by USD 5-8/MT from the last week’s report, with few shredded deals being reported from UK and Australia/New Zealand origin, at around USD 300/MT CFR price level.

HMS scrap trades too remained limited, with offers for HMS 1 now being being reported in the range of USD 290/MT CFR, while HMS 1&2 (80:20) from Brazil and south American origins at around USD 280/MT CFR. P&S scrap offers South American origins remain stable at around USD 305-310/MT CFR Chittagong.