The much-awaited EU waste shipment guidelines were announced this week which aim at reducing greenhouse gas emissions and contribute to meeting climate targets, as these will encourage the uptake of recycled materials in the EU. The global ferrous imported scrap market witnessed dull sentiments throughout the week with prices dropping.
Global market highlights:
- Turkey imported scrap prices fall slightly: Turkish deep-sea scrap import prices declined marginally by $3-4/t on a w-o-w basis. A Baltic-origin cargo containing HMS 1&2 (80:20) was booked at $495/t CFR Turkey, while bonus material fetched $520/t CFR. The cargo was booked by a steel mill in the East Marmara region.
SteelMint’s assessment for US-origin HMS 1&2 (80:20) stood at $496/t CFR Turkey.
- Japan’s scrap export offers drop further: Japanese scrap export offers continue to decline for another successive week, owing to lower bids received from overseas markets like Vietnam and South Korea.
SteelMint’s assessment for Japanese scrap export prices stands at JPY 51,000/t FOB basis, decreasing by JPY 500/t w-o-w.
- Hyundai Steel cuts bids for Japanese scrap: South Korean steel major Hyundai Steel has slashed bids for Japanese ferrous scrap while booking the bulk cargo earlier this week. Bids were set at JPY 49,500/t ($433/t) for H2 grade. Around 80,000 t of bulk scrap have been booked at a presented bid.
Following Hyundai Steel, SeAH Steel Besteel also reduced the Japanese scrap purchase prices. The bid price is now set at JPY 64,000/t CFR and JPY 58,000/t CFR for shindachi and shredded respectively.
- Vietnam’s imported scrap trade down despite drop-in offers: Vietnam’s scrap import prices are continuing to decline since the beginning of Nov’21. Japanese suppliers lowered their offers post-the sharp fall in prices of the monthly Kanto scrap export tender. But, despite the low offers, the market remained weak. Meanwhile, demand from the domestic and overseas markets, mainly from China, is weak at present. As a result, scrap inventory volume with the steel mills is quite high.
SteelMint’s assessment for Japanese bulk H2 stood at $500/t CFR, down by $5/t w-o-w.
- Tokyo Steel lowers scrap buy prices twice this week: Tokyo Steel has reduced scrap purchase bids twice this week by JPY 500/t ($4/t) each for its two plants from 20 Nov’21, as per latest reports. Post-revision, the company’s bid price for H2 scrap stands at JPY 55,000/t ($481/t) for the Tahara steelworks, and JPY 54,500/t ($477/t) for the Kyushu works.
Prices in JPY
Source: Tokyo Steel
- Shagang Steel lowers scrap purchase prices thrice this week: China’s Shagang Jiangsu Steel has announced three price cuts this week by RMB 180/t ($28/t) for all grades from 19 Nov’21. After the revision, the price of HMS (6-10mm) stands at RMB 3,240/t ($507/t), including 13% VAT, delivered to headquarters. Bearish steel market sentiments and piling up of inventories at mills have led to the cutback in scrap buy prices.
- Bangladeshi mill actively books imported scrap: Bangladesh-based steel mills remained active in booking imported scrap. The reason is, this is the peak season for infrastructure and construction. Furthermore, many major mills have also shifted to container booking on restocking due to fall in offers.
Four-five cargoes of bulk US-origin HMS and shredded scrap were booked recently at $570/t CFR and $575/t CFR Bangladesh, respectively, for end Dec’21-early Jan’22 loading.
SteelMint’s daily assessment for UK-origin shredded in containers was at $575/t CFR Chittagong levels, decreasing 10/t w-o-w.
- Pakistan’s imported scrap prices range-bound: Imported scrap offers to Pakistan remained firm, despite the high offers. Many deals were heard concluded from Pakistani steel mills, restocking actively for winter. However, demand from end-users remained slow during winter, owing to heavy smog.
SteelMint’s daily assessment for shredded scrap of UK/EU-origin stood at $560/t CFR Port Qasim, slightly down by $2-3/t w-o-w.
- India’s imported scrap market quiet: Indian imported scrap market observed limited trade this week. Indian buyers opted to wait and watch and preferred domestic substitutes. The global price downtrend slowed down market activities. However, a few deals were heard to have been concluded.
As per SteelMint’s daily assessment, shredded stood at $552/t, down by $5-10/t w-o-w.
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