Weekly round-up: Global ferrous scrap market turns bullish on active restocking

Global ferrous scrap market gained momentum this week due to tighter supplies and restocking demand ahead of the upcoming Eid festival. Turkey imported scrap prices rose by $45/t against the closing of last week following which offers in South Asian markets also moved up. However, Japanese export offers remained under pressure before the Kanto tender outcome. Tokyo Steel and Shagang Steel lowered scrap buy prices twice this week.

• Turkiye scrap import prices hit one-month high: Turkish imported scrap market was mostly silent in the beginning of the week after witnessing a sharp hike in prices. Sentiments were optimistic on the back of the approaching Eid holidays. Many deals were concluded for USA and UK-origin towards the weekend.

SteelMint’s price assessment for US-origin HMS 1&2 (80:20) stood at $410/t CFR, registering a sharp hike of over $45/t against the closing of last week.

• Japanese ferrous scrap export offers fall further; buyers wait for Kanto tender outcome: Japanese scrap export trade remained subdued on lower bids from overseas buyers. Prominent buyers like Vietnam and South Korea were mostly quiet over the last few weeks. However, some Vietnamese mills showed interest since they did not buy much for July and August. But suppliers were keeping offers at high levels and were not in a hurry to sell material.

SteelMint’s assessment for Japanese H2 scrap export prices stood at JPY 47,500/t ($350/t) FOB, down by JPY 1,000 ($7/t) w-o-w.

Meanwhile, Japan’s monthly Kanto Tetsugen ferrous scrap export tender is scheduled for 12 July, 2022, sources informed SteelMint. The average bid for the June tender fell considerably by JPY 13,450/t ($100/t) compared to bids in the last tender held in April. The tender for May was not concluded owing to lower bids from participants. Market participants are looking forward to the July tender for price outlook.

• Vietnam imported scrap offers hit 1.5-year low: Limited demand for semi-finished and finished steel in domestic and overseas markets continued to be the major factor behind limited trade. Meanwhile, domestic material was available at more competitive prices. Vietnam scrap import prices fell to the lowest level in 1.5 years. However, trade activities did not improve.

Fresh offers for Japanese H2 bulk cargoes were at $390/t CFR, down by $5/t w-o-w.

• Tokyo Steel cuts scrap purchase prices twice this week: Tokyo Steel Japan’s largest EAF steelmaker lowered scrap purchase prices by a total of JPY 2,000/t ($15/t) this week. After the second revision, bid prices for H2 scrap were at JPY 51,000/t ($375/t) delivered to Tahara, while prices for Utsunomiya remained unchanged at JPY 50,000($368/t), delivered via land route.
• Shagang Steel trims scrap prices twice the week: Shagang Jiangsu Steel lowered scrap purchase prices by RMB 100/t ($15/t) for all grades, this week. After the revision, prices of HMS (6-10mm) were at RMB 3,300/t ($492/t) delivered to headquarters, including 13% VAT. The company trimmed scrap procurement prices amid lower finished steel prices.
• Bangladesh’s imported scrap market dull: Bangladesh’s imported scrap market remained slow amid the approaching Eid holidays. The festive holidays kept trade activities on the lower side for over a week.

Furthermore, the bulk imported market was mostly quiet for a couple of weeks, owing to limited demand. However, mills had booked enough inventory when prices had bottomed out a week back.

Fresh offers for UK-origin shredded were at $490-500/t CFR levels, moving up significantly around $20/t w-o-w.

• Pakistan imported scrap offers surge: Pakistan’s imported ferrous scrap prices continued to move north amidst higher offers from suppliers for prompt cargoes given the lower seasonal collection rates and upcoming Eid holidays. Pakistan-based mills remained more active compared to other South Asian countries in terms of restocking scrap.

Fresh offers for UK-origin shredded in containers are at $490/t CFR levels, moving up considerably by $40/t CFR levels.

• India’s imported scrap offers rise, trade subdued: India’s imported scrap offers picked up after the recently concluded Turkiye deals. Steel mills have limited stock available with them. Buyers were preferring imported material than domestic material on cost effectiveness. Active deals took place especially in Nhava Sheva and Mundra Port.

SteelMint’s assessment of Europe-origin shredded scrap prices stood at $480-485/t CFR Nhava Sheva, a jump of $25-30/t w-o-w.