The global scrap import market saw limited trades throughout the week. Towards the end of the week deals to Turkiye were concluded at an abruptly lower price even as a few more deals were heard concluded to Vietnam at lower prices amid higher offers even as the major buyers remained absent from the market. The South Asian market somehow sustained as fewer deals were concluded by Pakistani buyers, with the Bangladesh and India markets remaining silent.
- Turkish imported scrap market lately active: The Turkish imported scrap market remained sluggish with limited deals concluded towards the weekend. Some steelmakers are all set to pause production for maintenance and others are in wait-and-watch mode due to a bearish market & energy price surge.
Imported scrap prices in Turkiye witnessed a drop in a recent deal as another Europe-origin cargo comprising HMS 1&2 (80:20) was booked at $386/t CFR Turkiye by an Aegean region-based Turkish mill.
SteelMint’s assessment for US-origin HMS 1&2 (80:20) stood at $387/t CFR, down by $10-15/t w-o-w.
- Vietnam’s imported scrap offers high: Although Imported scrap offers moved up, buying interest remained low due to lack of support from the domestic steel market which was unwilling to accept high offers.
An H2 bulk cargo with 10,000 t from Japan was booked at $415/t. Fresh offers were heard at around $425/t, CFR.
- Hyundai Steel’s bids for Japanese scrap rise: Hyundai Steel’s bid for Japanese scrap increased sharply by JPY 7,300/t ($53/t) for H2 and JPY 7,500/t ($54/t) for higher-grade scrap as against the last bid presented on 18 August. The current price for H2 scrap is JPY 49,800/t ($360/t), whereas the current price for HS is JPY 55,500/t ($401/t) FOB. Limited scrap availability with mills followed by a busy season for the steel market is the reason behind this sharp hike in bids.
Meanwhile, POSCO has announced bids for Japanese scrap after a gap of almost three months. Bids for HS grade material are at JPY 59,500/t CFR ($430/t), shindachi bara at JPY 59,000/t ($426/t) CFR and shredded at JPY 57,500/t ($415/t).
- Japan export offers hit 2-month high: Japanese scrap export offers continue to move up to hit a two-month high this week because of tight availability and high domestic and overseas demand for scrap. Major players like South Korea and Vietnam increased their inquiries for booking mostly for high-grade material.
SteelMint’s assessment for Japanese H2 scrap export prices stands at JPY 49,500/t ($353/t) FOB, a sharp hike of JPY 3,000 ($21/t) w-o-w.
- Tokyo Steel’s scrap purchase prices increase: Japan’s major EAF steelmaker Tokyo Steel raised scrap buy prices thrice this week. The company increased bids for H2 scrap by JPY 5,500/t ($40/t) for 3 of its plants. After the third adjustment, bid prices for H2 scrap are at JPY 50,500/t delivered to the Okayama plant while prices were unchanged for the Tahara plant at JPY 48,500/t ($350/t) and the Utsunomiya plant at JPY 48,000/t ($346/t).
- Shagang steel’s scrap prices down w-o-w: Jiangsu Shagang Group, scrap purchase prices witnessed downward movement throughout the week amid weak finished steel demand. After two revisions, prices fell by RMB 130/t($19/t) for all grades. HMS (6-10 mm) prices are at RMB 3140/t ($456/t) delivered to headquarters, including 13% VAT.
- Bangladesh bulk and container market silent: Bangladeshi imported scrap market is on mute due to the absence of major buyers, whereas low imported scrap prices restricted market activities.
The containerized market of the country continued to remain silent as regards fresh bookings, Volatility in the Taka and Dollar exchange rates, LC restrictions, and other issues impacting overseas scrap trades.
SteelMint’s assessment for UK-origin shredded stands at $500/t CFR, moving down by $13/t w-o-w.
- Pakistan’s imported scrap market sees limited deals: Pakistan imported scrap market this week remained silent amid heavy rainfall across the country. Subdued demand for finished and semi-finished steel, owing to limited construction activities during the monsoons and flooding, kept buyers and steelmakers at bay.
Fresh offers are at $475/t CFR levels, down by $15-20/t. However, a few deals comprising around 9,000 t of shredded container cargo were booked this week at a price range of $470/t to $490/t.
SteelMint’s assessment for shredded scrap in Pakistan stood at $475/t CFR Qasim, down by $17/t w-o-w.
- Imported scrap market down in India during festive season: Subdued finished steel demand and festive holidays due to Ganesh Chaturthi impacted demand for imported scrap in India. Amidst a hazy market outlook, buyers and sellers opted to wait and watch. Meanwhile, a few market participants are waiting for their bulk cargo arrivals.
SteelMint’s assessment for shredded scrap in India stood at $475-480/t CFR Nhava Sheva, down $10-15/t w-o-w.
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