For the most part of the week, the global scrap price trend witnessed a downward movement in all the major markets, however, in the latter half of the week few bulk bookings to Turkey at an increased price level, indicated a cease in the downturn. Japanese scrap prices, however, continue to fall in the domestic market as well as export offers to overseas markets like South Korea.
Turkey: After falling by over USD15-17/MT earlier in this week, Imported scrap prices to Turkey finally moved up by the closing of the week, ending the successive downtrends since Jan’20, which had pulled down prices to below three months low levels.
A UK scrap recycler, sold a bulk cargo to a West Marmara based steel mill, comprising of HMS (80:20) at USD 255/MT, Shredded at USD 260/MT and bonus at USD 265/MT CFR, Turkey.
After normalizing the latest deals, SteelMint assessment for the USA origin scrap HMS 1&2 (80:20) stands at around USD 260/MT CFR Turkey, increasing by USD 5/MT as against price reported in mid of the week.
Japan: Japan’s Tokyo Steel lowered its domestic scrap purchase bids thrice in a week, at all of its 5 plants, by JPY 2000/MT(USD 18) in total.
After the third price cut, the company is paying JPY 21,500/MT (USD 196) for H2 scrap delivered to its Tahara plant in the central region, while the revised price for H2 delivery to Utsunomiya plant in the Kanto region and Kyushu works in the western region is JPY 21000/MT (USD 191). For H2 delivered to Okayama plant and Takamatsu Steel Center, the prices are JPY 20000/MT (USD 182) and JPY 19000/MT (USD 173) respectively.
The market is awaiting the result of the Kanto monthly tender on 12th Feb’20 for further direction.
South Korea: Hyundai Steel booked a bulk HMS scrap cargo of 32,000 MT this week from a US (West Coast) based scrapyard. The deal was concluded at around USD 261/MT CFR South Korea, down by USD 26/MT against the last booking from the USA at USD 287/MT, CFR.
Hyundai Steel bid this week for Japanese H2 scrap procurement lowered to JPY 23,000/MT (USD 209) FoB Japan. The price has significantly moved down by JPY 2500/MT (USD 23) as compared to JPY 25,500/MT bids were reported in late Jan’20.
India: Imported scrap offers to India have come sharply dropped on a weekly basis, however, many sellers have withheld their offers in the last 2 days, not offering much material amid the extremely volatile sentiments in the Turkish import market and the news of a potential rebound in prices. Buyers too remained cautious.
SteelMint’s assessment for containerized Shredded 211 from North America and Europe to India now stands at USD 282-285/MT CFR, down by USD 7-8/MT W-o-W, against USD 290-294/MT last week. Some bookings for Shredded scrap were witnessed for the western region at around USD 283-284/MT CFR, earlier this week.
HMS 1&2 (80:20) from Europe/UK standing in the range of USD 272-275/MT CFR Nhava Sheva, amid slow trades, while Dubai origin HMS 1 super (no ci gi) has been assessed at around USD 280/MT CFR.
South African HMS 1 was assessed at USD 285-290/MT CFR, while West African HMS 1&2 (80:20) to Goa was sold at USD 270/MT CFR, in the week opening.
Bangladesh: Imported scrap offers to Bangladesh further move down this week. Assessment for containerized Shredded scrap from UK/Europe stands in the range of USD 295-297/MT, CFR Chittagong, dropping by USD 10/MT W-o-W. Few shredded offers from Chile were reported in the range of USD 285-290/MT CFR Chittagong. Buyers were bidding for US origin shredded at around USD 290/MT, CFR Chittagong.
Few bookings were done for HMS1 at USD 281/MT CFR Chittagong, while from Chile/Brazil origin HMS 1& 2 (80:20) were reported below USD 270/MT, CFR.
Pakistan: Imported scrap offers to Pakistan witnessed a sharp fall throughout the week. At the beginning of the week Shredded 211 scrap from UK/Europe were stands in the range of USD 283-285/MT CFR, while in the week ending, offers for the same grade stands at USD 278-280/MT CFR Qasim from Europe.
From European origins, shredded offers were also reported at USD 277-278/MT. HMS 1 super from Dubai is being offered at around USD 275-280/MT CFR Qasim, against USD 283-284/MT levels last week.
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