The global imported scrap market showed mixed sentiments this week as major importers like Turkiye and Bangladesh showed less interest due to limited demand and higher offers in respective regions. Hyundai Steel presented bids for scrap after almost a month’s gap. Tokyo Steel increased prices after consecutive cuts. South Asia’s imported scrap prices continued to edge up on approaching seasonal demand.
- Turkish imported scrap market dull: The Turkish imported scrap market remained silent as mills had earlier booked some volumes. Steelmakers and buyers decided to stay out of negotiations. In line with this, suppliers were also not in a hurry to sell their material and due to scrap scarcity prices moved higher.
SteelMint’s price assessment for US-origin HMS 1&2 (80:20) stood at $395-400/t CFR, up by around $10/t w-o-w.
- Hyundai Steel lifts bids for Japanese scrap: Hyundai Steel’s bid for Japanese scrap increased drastically by JPY 2,500/t ($18/t) for H2 and JPY 3,000/t ($22/t) for higher-grade scrap. The current price for H2 scrap is JPY 42,500/t ($315/t), whereas the current price for HS and Shindachi-bara is JPY 48,000/t ($355/t) FOB. Improving Japanese scrap export prices post Kanto tender and limited inventories at mills during the peak production period resulted in the hike.
- Japanese scrap export offers inch up: Japanese scrap export offers climbed further as enquiries from overseas buyers intensified. Hyundai Steel presented bids for Japanese scrap this week after a four-week pause, which acts as a benchmark for local steelmakers’ pricing for Japanese scrap. Japanese H2 scrap export prices are now at JPY 42,000–43,000/t ($307–314/t) FOB, up by JPY 1,000 ($7/t) w-o-w.
- Tokyo Steel’s scrap purchase prices increase: Tokyo Steel of Japan has increased its scrap buy prices following four months of constant reduction. The company raised bids for two of its facilities by up to JPY 2,000/t ($15/t). H2 scrap is currently being bid at JPY 43,000/t ($318/t) for delivery to the Utsunomiya and Kyushu plants, while the for the rest it remains unchanged.
- Shagang Steel’s scrap prices remain volatile: China’s Shagang Steel’s prices witnessed fluctuations throughout the week. The company’s prices surged in the beginning of the week by RMB 300/t ($45) but fell towards the week end by RMB 50/t ($7). After revision, HMS (6-10 mm) prices are at RMB 3,320/t ($490/t) delivered to headquarters, including 13% VAT. The company raised offers to attract scrap deliveries; however, with the decline in steel prices, scrap purchase bids have come down.
- Imported scrap offers to Bangladesh surge further: Despite limited demand, major mills are trying to maintain their stocks ahead of seasonal demand surge in winter. Bulk buyers reported sluggish trade activities. Nevertheless, a few of them were engaged in the market.
Whereas mills in Dhaka have chosen to reduce their steel production, others have stopped production as a result of high input prices. Following the currency devaluation, the price of raw materials climbed by about 20% and transportation costs also increased, forcing mills to wait and observe the situation for any improvement.
SteelMint’s assessment for UK-origin shredded stands at $525/t CFR, moving up significantly by $22-30/t w-o-w.
- Pakistan’s imported scrap trade slows on high offers: After the Muharram/Ashura holidays, trade activity in Pakistan’s steel market resumed last week. Limited demand from end-users, drop in selling pressure of finished steel amid liquidity crunch and heavy rainfall in many parts of the county resulted in the increase in inventories.
SteelMint’s assessment for shredded scrap from the UK/Europe stood at $500/t CFR Qasim, up sharply by $15-20/t against last week.
- India’s imported scrap trades slow down: The Indian market remained sluggish as buyers remained inactive due to the festive season and holidays this week. However, buyers were active in the beginning of the week to build their inventories as they expect finished steel demand to recover before the onset of winter.
SteelMint’s assessment for shredded scrap in India stands at $500/t CFR Nhava Sheva, up by over $10/t w-o-w.
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