Global ferrous scrap market has seen less trade due to Eid holidays. Here is a sum-up from the key markets:
Turkish imported scrap market silent:
Imported scrap trade in Turkey remained inactive this week, due to the ongoing Eid holidays. The market was quiet throughout the week and prices fell in the absence of traders. Scrap suppliers are likely to adjust their offers once the market resumes post the Eid holidays to overcome the disparity in bids and offers. SteelMint’s assessment for US-origin HMS 1&2 (80:20) now stands at $480/t CFR Turkey, dropping further by $5/tonne (t) w-o-w.
Shagang lifts scrap purchases prices by $12/t:
China’s largest electric arc furnace (EAF) steelmaker, the Jiangsu Shagang Group, announced its first hike for scrap purchases for Jul’21. The company announced a scrap procurement price hike by RMB 80/tonne (t) ($12/t) across all grades. Increased scrap deliveries and hike in semi-finished and finished steel prices led to the rise in prices. After the revision, current prices for HMS (6-10 mm) stand at RMB 3,850/t ($594/t), inclusive of 13% VAT, delivered to headquarters.
Imported scrap prices into Vietnam slump:
Imported scrap offers into Vietnam for bulk Japanese H2 tumbled around $5/t to $495/t CFR Vietnam. The domestic steel market sentiments remained gloomy due to the worsening Covid situation, disparity in bids and offers, limited trade and recent correction in Japanese domestic scrap prices.
No trade in Japanese scrap reported for China:
The bid and offer discrepancies for HRS 101 kept buyers away from the Japanese scrap market. Bids from China are hovering at around $540/t CFR levels. However, offers are on the same levels as of last week at $570-600/t CFR. Chinese buyers are showing more interest in semi-finished steel (billets) instead of scrap.
Tokyo Steel cuts scrap purchase prices:
Japan’s leading EAF steel mill, Tokyo Steel, announced its second revision for scrap buying this week. The company decreased prices by JPY 500-1,000/t ($5-9/t) for four of its steelworks, excluding the Utsunomiya plant. Currently, the company is paying a bid price for H2 scrap at JPY 50,000/t ($455/t) for the Tahara works. However, prices stayed stable for the Utsunomiya plant at JPY 49,000/t ($446/t).
Bangladesh bulk scrap market at a standstill:
The Bangladeshi government has extended its lockdown restrictions from 23 Jul-5 Aug’21, now ordering shutdown of manufacturing plants. The market remained quiet with no major changes noticed, and limited deals seen before the start of the Eid holidays. UK/EU-origin shredded offers are being quoted at $555-565/tonne (t)CFR Chittagong basis, stable against last week.
Pakistan’s imported scrap prices supported in recent trade:
The Pakistan scrap market slowed down amid the Eid holidays. Local scrap prices moved up further this week due to shortage in the material. A few deals were reported by steel mills recently. However, imported scrap deals remained in place despite the Eid holidays. Around 10,000-15,000 t of UK-origin shredded scrap were concluded at around $545-550/t CFR Port Qasim, recently during the Eid holidays.
SteelMint’s bi-weekly price assessment for shredded scrap stands at $545-550/t CFR Port Qasim, largely stable against the beginning of this week.
India’s imported scrap market dull:
Due to disparity in bids and offers no active bookings were recorded this week and the market continued to be dull for yet another week. Mills are procuring scrap from the local market, reducing the demand for imported scrap in the process.
SteelMint’s imported scrap prices for the UK/EU-origin shredded are assessed at $545-550/tonne (t) CFR Nhava Sheva levels, up by $5/t w-o-w. Furthermore, UK-origin HMS 1&2 (80:20) are not cited at $490-495/t CFR levels. Deals of West Africa-origin HMS were heard at $450-460/t CFR Mundra.
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