Weekly: Global ferrous scrap market overview

Global ferrous scrap market witnessed a sharp hike in prices on tighter material availability and container shortage. Turkish scrap market observed limited trades. Following global trends, prices in South Asian markets escalated further. Japanese scrap prices soared on strong buying from Vietnam. Industry awaits roll out of regulations on imported scrap standards in China which expected to be done in Jan’21. At a closed-door conference held in Beijing on 29 Nov’20, Chinese government bodies including the Ministry of Ecology and Environment finally approved new classification standards for the country’s steel scrap sector.

• Turkish imported scrap prices at 2.5 years high – Imported scrap prices to Turkey have moved up further, however, limited deals were reported this week, including Russian bulk cargo. SteelMint’s assessment for USA origin HMS 1&2 (80:20) stands at $363/t CFR Turkey, up by $13/t w-o-w. Prices are hovering close to 2.5 years high as similar levels were last seen in Mar’18.
• Recent bookings by Vietnam mills lift Japanese prices further – Vietnamese steel mill has booked 10,000 t of Japanese H2 bulk cargo for Jan’21 shipment and the deal was concluded at $360/t CFR Vietnam basis. While the fresh offers are being reported at $370/t CFR levels, and offers have moved up by $15 as against the beginning of the week.
• Indian mills remain cautious on imported scrap bookings this week – Indian imported scrap market observed limited trade activities throughout this week. Buyers have adopted a cautious approach since the prices continued to move up on limited container and scrap availability, bookings may pick-up next week. SteelMint’s assessment for Shredded scrap in containers of UK/EU origin stands at $387/t CFR Nhava Sheva, moving up significantly by $17/t w-o-w.
• Limited offers continue to push imported scrap offers in Bangladesh- Limited offers and increased buying inquiries have pulled up imported scrap prices further in Bangladesh. Imported scrap prices have moved up by $20-25/t w-o-w on tighter supplies. Whereas, other mills continued to book Indian sponge iron for Dec end and Jan’21 shipment. SteelMint’s assessment of containerized shredded 211 scrap from UK/Europe origins stands at $403/t CFR Chittagong, up by $20/t w-o-w. Fresh offers for H2 now stands at $380/t CFR Chittagong level, up by $7 against the beginning of the week.
• Pakistan’s domestic steel price up, following hike in imported scrap offers- Pakistan imported scrap prices up by $12 w-o-w – Pakistan-based steel mills have remained active in booking imported containerised scrap in absence of bulk offers. Mills have raised steel offers too following hike in scrap prices. On the other hand, tight scrap availability remained major factor behind continuously increasing prices. SteelMint’s assessment for imported shredded 211 scrap in containers from UK/Europe stands at $383/t CFR Qasim, moving up by $5/t against the beginning of the week.
• Tokyo Steel lifts price thrice for domestic scrap purchase this week – Japan’s leading EAF mill- Tokyo Steel has raised its scrap purchase price by a total of JPY 2,500/t ($24) for Tahara plant and by JPY 2,000/t ($19) for Utsunomiya plant. The company is now paying JPY 34,500/t ($331) and JPY 30,500/t ($293) for H2-scrap delivered to Tahara and Utsunomiya plant respectively. This is the company’s third price revision for Dec’20.
• Market awaits Kanto scrap export tender results – Japanese scrap export price rally continues on strong demand both in the domestic and overseas market. Market sources expect the ‘Kanto Tetsugen’ scrap export tender to fetch sharp hike in bids. The tender is scheduled next week. H2 scrap offers are heard around at JPY 34,000-34,500/t FoB levels, sources reported SteelMint.
• South Korean mills raise bids for Japanese scrap – South Korean mill – Hyundai Steel has lifted bids for higher grade Japanese scrap by JPY 3,000/t ($29), against last bids placed two weeks ago. The bid price for HS and shindachi is now set at JPY 37,000/t level, however, the company did not place any bid for other scrap grades including H2 scrap. On the other hand, Russian bulk scrap booking prices have risen significantly in a recent deal concluded by Hyundai Steel for Jan’21 shipments. The cargo comprises 46,000 t of Russian A3 scrap at $358/t CFR South Korea basis. SteelMint’s assessment for Japanese scrap export offers stands at JPY 34,000/t FoB, sharply up by JPY 3,000/t w-o-w.
• Shagang Steel kept scrap purchase price unchanged – Eastern China’s largest EAF steelmaker- Shagang Group kept its scrap purchase price unchanged this weeks. The company had raised prices by RMB 50/t ($8) for all grades on 25th Nov’20. The purchase price for HMS (6-10 mm) now stands at RMB 2,940/t ($448), inclusive of 13% VAT, delivered to headquarters works at Zhangjiagang North of Shanghai in China. Prices are hovering at over three-years high, as per data maintained with SteelMint.