Weekly round-up: Global ferrous scrap market shows diverse trends

The global ferrous scrap market witnessed mixed trends this week. Turkey observed decline in prices on weakening finished steel market sentiments. Bids for scrap by Chinese and South Korean mills also fell. However, prices in South Asian markets remained supported.

• Turkish mills remain active in booking imported scrap, but prices fall: Turkish scrap buyers actively purchased imported scrap. Around six deep sea cargo deals were recorded by SteelMint throughout the week. SteelMint’s assessment for US-origin HMS 1&2 (80:20) stands at $452/tonne (t) CFR Turkey, down significantly by $6/tonne (t) w-o-w.
• Japan’s Kanto scrap export tender falls m-o-m: Japan’s monthly Kanto Tetsugen ferrous scrap export tender for Aug’21 was concluded on 19 Aug’21. A total of 13,000 tonnes (t) of Japanese H2 scrap were awarded at an average price of JPY 46,646/t ($423/t) FAS, SteelMint learnt from trade sources. Although the bids fell on a monthly basis, these were higher than the usual market prices, which shows that chances of a price correction are slim in the Japanese scrap export market in the short term.
• Tokyo Steel cuts scrap prices by up to $10/t: Japan’s leading EAF steel mill, Tokyo Steel, revised its scrap purchase prices for the third time in Aug’21. The company has decreased prices up to JPY 1,000/t ($10/t) for two of its steelworks, excluding the Utsunomiya plant. After the adjustment, the company would pay a bid price for H2 scrap at JPY 48,500/t ($442) for Tahara works.

• Hyundai Steel lowers bids for Japanese scrap: South Korean steel major Hyundai Steel has reduced bids for Japanese ferrous scrap by JPY 500/t ($5) against the last bid placed on 5 Aug’21. Bids for H2 scrap are now at JPY 45,000/t ($410/t) FoB. The difference between high-grade scrap and H2 continues to remain high at JPY 18,500/t unlike the price of JPY 9,000/t assessed in Jun’21.

• Vietnam’s imported scrap trade remains limited: The Covid-19 pandemic has impacted Vietnam very severely. The country witnessed limited market activities for yet another week while offers have been mostly absent over the last few weeks. SteelMint’s assessment for Japanese bulk H2 are heard at around $470/t CFR Vietnam levels, lower by $5/t w-o-w.
• China’s imported scrap deals limited: China’s imported scrap market has remained less active with Japanese offers remaining quite far from the reach of Chinese buyers. Meanwhile, increased freight rates have put scrap buyers in ‘wait and watch’ mode. However, offers for South Korean scrap were heard at $560/t CFR China.
• China’s Shagang trims scrap purchase price thrice: China’s largest electric-arc furnace (EAF) steelmaker, the Jiangsu Shagang Group, slashed its scrap purchase prices by up to RMB 50/tonne ($8/t) across all grades. This is the third price cut announced by the company in Aug’21. After the current revision, prices for HMS (6-10 mm) stand at RMB 3,700/t ($570/t), inclusive of 13% VAT, delivered to headquarters. Prices have dropped amid decrease in prices of raw materials and domestic steel.
• Bangladesh market slows down on holiday: Bangladesh’s domestic steel market had gained slight momentum, after the lockdown was lifted last week, SteelMint learnt. Due to the ongoing monsoon, buyers are less active and market players were absent on account of the Muharram Ashura holiday this weekend. But it is expected that the market would likely get a boost from mid-September SteelMint’s assessments for UK/EU-origin shredded stand at $545-550/t CFR levels.
• Pakistan imported scrap offers up, trade remains slow: Pakistan’s buyers procured actively as prices moved up due to limited scrap stock availability in the domestic market. But then, the market slowed down due to the ongoing holidays. However, trading is expected to resume from next week on tighter domestic availability. SteelMint’s bi-weekly assessment for shredded scrap of UK/EU-origin stands at $540-545/t CFR Port Qasim, up $5-10/t since the beginning of this week.
• India’s imported scrap trade remains silent: Indian mills kept their foot away from the imported scrap market as offers rose. The disparity in bids and offers kept market activities slow in India. In addition, correction in domestic billet prices kept buyers away from making fresh bookings of imported scrap. However, trading is expected to resume next week on tighter availability of the material in the domestic market. SteelMint’s bi-weekly assessment for shredded scrap of UK/EU-origin stands at $540-545/t CFR Port Qasim, up by$10-15/t w-o-w.