Global scrap market witnessed a mixed trend this week. One hand Turkish mills went on a buying spree pre Eid as well as post Eid holidays amid firm prices, while South Asian markets observed slow trades on subdued demand, with stable to slight uptick being observed in offers. Japan’s domestic rose significantly, following the export offers rally, while China’s domestic scrap observed price cut this week.
Turkey: Just after the Eid holidays, Turkish mills resumed imported scrap bulk cargo bookings, and numerous deals from US, Baltic and Europe origins were reported. The price differential between USA and Europe origin further narrowed, on tighter availability in the continental yards, in comparison to USA.
In the last 2 days, a 50,000 MT mixed cargo by a Canadian recycler being sold to Mediterranean mills with 25,000 MT HMS 1&2 (90:10), 10,000 MT Shredded and 15,000 MT P&S at an average price of USD 261/MT CFR. Additionally, 4 different mixed cargoes from USA, Baltic, Benelux and UK based suppliers were sold to 3 different Turkish mills, with HMS 1&2 (80:20) price being USD 252.5-253/MT in all the bookings.
SteelMint’s assessment for USA origin HMS 1&2 (80:20) stands at USD 254/MT CFR Turkey, stable against last week.
Japan: Japan’s Tokyo Steel announced a hike in its scrap purchase price twice this week, with bids rising by JPY 500-1000/MT (USD 5-9) each time at all of its five works. After the second price hike, the company is now paying JPY 21,500 /MT (USD 199) for H2 scrap delivered at its Tahara plant in Central Japan, while the new prices for H2 scrap delivery to Utsunomiya plant in the Kanto region and Okayama plant now stand at JPY 20,500/MT and JPY 19,500/MT respectively.
China: China’s Shagang Jiangsu Steel group has observed its first price cut this week for all grades of domestic steel scrap procurement by RMB 30/MT (USD 4) after four successive rice hikes were witnessed. The purchase price for HMS (6-10 mm thickness) has now stood at RMB 2530/MT (USD 353), inclusive of 13% VAT, delivering to headquarters works situated in Zhangjiagang North of Shanghai in China, in comparison with the last revision to RMB 2,560/MT on 12th May’20.
South Korea: Imported scrap offers to South Korea moved up further for yet another week, rising by JPY 1000/MT for Japanese H2 scrap against last week closing. Dongkuk steel has booked for Russian A3 grade scrap at USD 249-250/MT, CFR South Korea, and it has moved up by USD 10-11/MT against previous bookings.
On the other hand, Hyundai Steel has bid this week for Japanese H2 scrap at JPY 23,000/MT (USD 214), FOB Japan. Whereas, Japanese suppliers were quoting more than JPY 24,000 /MT (USD 223).
India: This week, Indian steel market moved further ahead as more steelmakers resumed their operations in the different regions. However, imported scrap trades remained very limited, as most buyers are at least a couple of weeks away from making fresh bookings for July shipments.
SteelMint’s assessment for Shredded 211 stands at USD 276-280/MT CFR Nhava Sheva, CFR, almost at the same levels as the previous week, with marginal downslide. Although inquiries by buyers were witnessed, no major transactions were reported. Bushelling scrap bundles from Australia and the UK were reported at around USD 298-300/MT CFR.
HMS 1 from South Africa were reported at around USD 262-263/MT CFR, while HMS 1&2 (80:20) offers were witnessed at around USD 253-255/MT CFR. Few trades of small quantities for HMS have concluded 5-6 days ago, however, in recent days, buying activity was silent.
Bangladesh: Imported scrap offers to Bangladesh remained limited and did not witness an uptrend this week. Trades were mostly not reported this week, as domestic shipyard scrap was available at a cheaper level and also currently low production levels in steel mills keeps demand low.
Shredded offers mostly remained out of the market on very low bids by mills, but few offers were heard in the market at around USD 286-290/MT CFR Chittagong. HMS 1&2 (80:20) was observed at around USD 255/MT CFR earlier in the week and moved towards USD 260/MT CFR mark by week closing.
Pakistan: Steel market in Pakistan mostly remained quiet earlier this week on Eid celebration, however, imported scrap offers continued to inch up slightly this week.
SteelMint’s assessment for Shredded 211 scrap in containers to Pakistan from UK/Europe now stands at USD 280-285/MT CFR Qasim, up by at least USD 4-5/MT against last week. Most fresh offers are being reported in the range of USD 282-285/MT CFR, while few Shredded deals in recent days were recorded at USD 279-280/MT CFR.
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