Negative sentiments continued to prevail in the international scrap market. Turkiye remained largely silent with few little deals heard. Japanese scrap export offers fell to the lowest level in one year. Tokyo and Shagang Steel announced a further cut in local scrap buy prices. Steel demand in Vietnam remains under pressure. Hyundai Steel resumed bids for Japanese scrap after a 1-month gap. South Asian buyers are holding back and anticipant a further drop in prices, whereas bulk deals regained momentum.
- Turkiye prices drop by $25-30/t w-o-w: Turkiye’s imported scrap market remained slow mainly due to lack of steel demand. Negotiations remained slow in the market as only a few fresh deals were reported towards the weekend. Recently, US bulk cargo, comprising shredded at $393/t and HMS 1&2 (95:5) at $380/t CFR Turkiye, was traded. Weak steel demand in Turkiye and increased bulk offers, particularly from the USA impacted prices.
SteelMint’s price assessment for US-origin HMS 1&2 (80:20) is at $380-385/t CFR, down by $25-30/t w-o-w.
- Japanese scrap export offers fall to 1-year low: Japan’s ferrous scrap export trades are yet to improve despite offers falling to one-year low. Buyers in overseas markets are waiting for a clear market direction. However, bids from prominent Japanese scrap buyers like South Korea and Vietnam have fallen further compared to last week.
SteelMint’s assessment for Japanese H2 scrap export prices stands at JPY 41,000/t ($299/t) FOB, down by JPY 4,500 ($32/t) w-o-w.
- Hyundai Steel cuts bids for Japanese scrap by $90/t m-o-m: Hyundai Steel has cut bids for Japanese scrap sharply by JPY 12,500/t ($90/t) for H2 and higher-grade scrap as against the last bids presented on 9 June. Bids for H2 scrap are now at JPY 40,500/t ($292/t), while those for HS and shredded are at JPY 45,000/t ($324/t) FOB. Interestingly, the company has bid for Japanese scrap after a gap of over one month. Lower bids at Kanto tender led to the drop in Japanese scrap export prices.
- Japan’s Tokyo Steel cuts scrap purchase prices: Tokyo Steel has reduced scrap purchase prices for the first time this week after bids in Kanto scrap export tender declined. The company has reduced bids by up to JPY 2,500/t ($18/t) for all of its plants, effective 23 July. After adjustment, bid prices for H2 scrap are at JPY 46,000/t ($334/t) supplied to the Tahara plant and JPY 44,500/t ($323/t) delivered to the Utsunomiya works.
- RMDAS ferrous scrap index falls to 1-year low: Raw Material Data Aggregation Service (RMDAS) ferrous scrap price index tumbled to a 1-year low level in July on lower finished steel demand. The average price for shredded scrap stood at $447/t in July, down $34/t m-o-m, while HMS prices fell by $40/t to $355/t and prompt scrap stood at $500/t, down $150/t.
- Vietnam’s scrap trades continue to remain slow: Amid heavy rainfall in many parts of Vietnam, imported scrap buyers desisted from booking fresh cargoes from overseas suppliers. Scrap prices, however, remain largely stable w-o-w. Meanwhile, a few mills opted for domestic material due to the need for prompt delivery as well as cost effectiveness.
Fresh offers for Japanese H2 bulk cargoes were at $370/t CFR, while buyers were bidding at levels which were lower by around $20-25/t.
- Shagang Steel lowers scrap prices: China’s Shagang Steel announced another scrap purchase price cut by RMB 100/t ($15/t) for all grades. After the revision, prices of HMS (6-10mm) are at RMB 2,670/t ($396/t) delivered to headquarters, including 13% VAT. The company has trimmed scrap buy prices due to sluggish domestic finished steel demand and sales.
- Bangladesh’s bulk booking resumes, container market inactive: The imported scrap market in Bangladesh witnessed a drop in prices in terms of both container and bulk material. Trade in containers remained subdued as the market resumed this week post Eid holidays. However, one bulk cargo was heard booked from Australia/New Zealand apart from Japan’s Kanto tender booking seen last week.
Fresh offers of UK-origin shredded are being heard at $480-490/t CFR levels, down significantly by $30-35/t levels w-o-w.
Major mills based in the Chittagong region booked a 30,000 t mixed bulk cargo from Australia/New Zealand. The cargo comprised 18,000 t of bonus sold at $430/t and 12,000 t of HMS 1&2 (80/20) at $420-425/t CFR Chittagong basis.
- Pakistan’s imported scrap prices drop, buyers await clarity: Pakistan’s imported scrap market saw a slow start but the market rebounded towards the middle of the week before falling again towards the weekend. Imported scrap offers witnessed a marginal correction after Eid. Steel mills are waiting for a clear direction as political changes may impact the market scenario. Moreover, construction activities remain suspended during the rainy season.
SteelMint’s assessment for UK/EU-origin shredded stands at $455-460/t CFR Qasim, down significantly by $30-40/t w-o-w.
- Bulk booking resumes in India: Negative market sentiments prevailed despite the continuous decline in imported scrap prices. Owing to volatility in currency exchange rates and heavy rainfall the market remained sluggish.
The cargo, comprising 14,000 t of shredded, 10,000 t of bonus and 8,000 t of HMS 1&2 (80:20), was booked from the USA at an average price of $425-430/t CFR for two port discharges, Chennai and Kandla. The drop in offers and weak buying in Turkey resulted in suppliers remaining active in the South Asian markets.
SteelMint’s assessment of Europe-origin shredded scrap stood at $460-465/t CFR Nhava Sheva, down $30/t w-o-w.
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