Imported ferrous scrap market gain momentum post Muharram holidays as buyers started restocking materials. Turkish buyers booked imported scrap due to limited stock in hand and improving steel market. Vietnam’s buyers started importing scrap due to its cost competitiveness over domestic material. Japan’s Kanto tender fall to 16-month low. Shagang Steel hiked scrap price amid improved steel sales. South Asia’s buyers turned active after the currency appreciated during the week.
- Turkey’s imported scrap market turns active: Turkish steel mills continue to replenish their stocks with active imported scrap bookings throughout the week. Scrap suppliers remain aggressive in selling their material amid the continued material shortage and logistic problems. Around five to six were heard to be concluded during the week.
SteelMint’s price assessment for US-origin HMS 1&2 (80:20) is at $395-400/t CFR, up $40-45/t w-o-w.
- Vietnam’s imported scrap market recovers: Due to increasing regional prices, buyers showed interest for imported scrap offers this week. Despite sluggish demand for finished steel, buyers resumed imported scrap bookings at better prices compared to domestic offers available. A few bookings for Japanese scrap were heard concluded in the monthly Kanto tender.
Indicative offers for Japanese bulk H2 scrap were heard at $365/t CFR Vietnam, up by $20/t w-o-w.
- Japan’s Kanto scrap export tender bids higher than expected: A total of 20,000 t of scrap was awarded and the average price for H2 material stood at around JPY 42,061/t ($312/t) FAS in Japan’s monthly Kanto scrap export tender concluded for August 2022. Prices have fallen by JPY 2,493/t ($19/t) levels from JPY 44,554/t ($330/t) fetched in July.
Notably, prices have fallen to a 16-month low on subdued market sentiments but may not see further drops from here, SteelMint understands. However, bids were higher than expectations which signaled recovery in Japanese scrap export prices later this week.
- Tokyo Steel scrap purchase prices remain firm: Following the scrap export offers, Tokyo Steel, Japan’s largest EAF steelmaker, had continued to lower its scrap purchase prices for the last three months. But from last week the company held firm its purchase prices. Currently, bid prices for H2 scrap were at JPY 42,000/t ($311/t) delivered to Tahara, and at JPY 41,000 ($303/t), delivered to Utsunomiya works.
- Shagang Steel increases prices twice by $45/t: China’s Shagang Steel has announced a sharp increase twice during the week for scrap purchase by a total of RMB 300/t ($45/t) for all grades. After the revision, HMS (6-10mm) prices are at RMB 3,070/t ($454/t) delivered to headquarters, including 13% VAT. The company has raised scrap buy prices due to improvement in demand and sales in the finished steel market, scrap prices continued to show positive signs.
- Bangladesh’s container market dull, bulk trade improves: Buyers have been less active in the containerised scrap market after the recent increase in input costs amid volatile currency exchange rates, increased raw material price, high maintenance costs and heavy monsoon led to shutdown and production cuts at many mills.
Fresh offers of UK-origin shredded are being heard at $500-510/t CFR levels, up by $15-20/t w-o-w.
Recently, 30,000 t of US-origin mixed (HMS and shredded) bulk cargo was booked for Sept’22 shipment at an average price of $445-450/t CFR Chittagong. Prices have moved up by $15-20/t w-o-w.
- Pakistan’s imported scrap market recovers: Imported scrap market gradually up over the last weekend. The gain in the national currency PKR (Pakistani Rupee) brought some relief to scrap buyers and steel mills, which may support further bookings. A few deals have been concluded after the market reopen post Muharram holidays.
SteelMint’s assessment for UK/EU-origin shredded stands at $495-500/t CFR Qasim. Imported scrap offers gained $25/t w-o-w.
- India’s imported scrap prices up, trades slow amid holidays: India’s imported scrap prices have increased, whereas already piled-up stock and subdued finished steel demand amidst holidays may slow down the trade. Also, Indian buyers held fresh booking due to lower bulk offers and few bulk cargoes booked in June are arriving.
SteelMint’s assessment of Europe-origin shredded scrap in containers stands at $495/t CFR Nhava Sheva, up $25/t w-o-w.
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