Global scrap market observed quite active this week with many deals getting concluded globally. Turkish buyers booked a few cargoes near the end of the week at decreased prices, after a silent week. South Asian imported scrap prices moved up slightly against last week. Japan’s Kanto tender result witnessed fall, but has raised the indicative export price levels, Korean Hyundai Steel will make fresh bids for Japanese scrap by early next week and POSCO Steel too returned to imported scrap market after 3 months.
Japan: Kanto Tetsugen-Japan’s monthly ferrous scrap export tender for July’20 was concluded this week on 9th July’20. A total of 22,000 t of Japanese H2 scrap was awarded at an average price of JPY 23,574/t ($220) FAS, as compared to JPY 26,360/t ($ 246) in Jun’20, witnessing a drop of JPY 2786/t ($26) against last month’s bid, however winning bids were quite higher than prevailing Japanese export offers, indicating a rise offers in coming days.
Meanwhile, earlier in the week, Tokyo steel had lowered its scrap purchase price further by JPY 500/t ($ 5) at three of its works while keeping bid price unchanged for Utsunomiya and Tahara plant. After the said price cut, the company is now paying JPY 23,000/t ($ 213) for H2 scrap to the Okayama plant, while prices may sightly inch up next week.
South Korea: After Kanto Tender’s result, Japanese scrap export offers were expected to rise, while Hyundai steel is likely to announce their fresh bids for Japanese scrap on 13th and 14th July next week, with bids expected to rise slightly. Anther major steelmaker POSCO steel re-entered the market for imported scrap this week for the 1st time since April’20, and booked 4,000 t of Japanese Shredded scrap at JPY 25,000/t FoB Japan basis.
Turkey: Turkish buyers resume trades in the closing of the week, after witnessing silence for almost a week. Imported scrap prices moved down in the latest deals concluded from US and Europe.
Among the latest bookings, USA East Coast-based recycler sold a 30,000 t mixed grade cargo to an Aegean region-based Steelmaker, comprising of Shredded 211 scrap at $258/t and P&S grade at $263/t CFR Turkey, putting the price for HMS 1&2 (80:20) at 253/t CFR Turkey, while the shipment is expected in early August.
SteelMint’s assessment for USA origin HMS 1&2 (80:20) stands at $254/t CFR, down from $259/t at closing of last week. While European origin HMS 1&2 (80:20) assessment stands at $250/t CFR Turkey, narrowing the gap with US material to just $4.
India – Indian imported scrap market witnessed improvement in buying this week, with trades of Shredded and HMS getting reported. Offers remained mostly firm in the week, showing a slight uptick in the latter part of the week. Buyers expecting slight price correction in the near term on slight fall in Turkish prices.
SteelMint’s assessment for shredded scrap from UK/Europe this week inched up by $2/t against closing of last week and stands at $285/t CFR Nhava Sheva. Shredded offers had ranged between $283-285/t CFR for most of the week, and firmed at $285/t by latter half. A major steelmaker booked 4,000t of Shredded from the UK in the beginning of the week, at $280/t CFR basis, while a couple of other bookings at around $282/t CFR were reported for Mundra and Nhava Sheva.
HMS 1&2 (80:20) from UK is being offered in the range of $248-250/t CFR, and buyers expressed interest at close to these levels, while Brazilian HMS 1&2 (80:20) stands at around $245/t, with few bookings to Mundra port at this price level in the week. West African HMS 1&2 (80:20) was sold at $ 255/t CFR to Chennai based steel mills, and offered at $243-245/t CFR Goa and $238-240/t CFR Nhava Sheva.
Pakistan: This week numerous trades were witnessed in Pakistan at an increased price against the closing of the last week. A Punjab region-based mill booked 2,500 t of Shredded scrap at $284/t CFR Qasim, while several deals at $ 282/t CFR were reported earlier this week.
Most fresh offers for shredded 211 stood at $285/t CFR levels from UK, with some offers also reported at around $283-284/t from European origins. While many mills were bidding at $280-281/t CFR basis.
SteelMint’s assessment for Shredded 211 scrap from UK/Europe stands at $283-285/t CFR Qasim, slightly increasing from $280-282/t levels at closing of last week.
Bangladesh: Imported scrap offers to Bangladesh increased this week with few major deals getting concluded, including Japanese bulk cargo got booked. While most containerized HMS deals concluded from Brazil and Australia.
A Chittagong based mill booked a cargo from Japan at the opening of this week, consisting of 10,000 t of Japanese busheling scrap, at a price of $287-288/t CFR Chittagong, significantly lower than their previous Japanese bookings in June.
SteelMint’s offers for Shredded scrap from UK/Europe stands at $295/t CFR Chittagong, slightly up against $288-290/t levels last week.
China: China’s Shagang Jiangsu Steel group kept its domestic steel scrap procurement price unchanged this week. Last week scrap purchase prices rose by RMB 20/t ($ 3). The purchase price for HMS (6-10 mm thickness) still stands at RMB 2650/t, inclusive of 13% VAT, delivering to headquarters works situated in Zhangjiagang North of Shanghai in China.
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