Weekly round-up: Global ferrous scrap prices jump on active Turkish buying

Global ferrous scrap prices went up significantly w-o-w on active bookings seen in the Turkish market.
South Asia’s ferrous scrap market remained partially active with some deals concluding for India and Pakistan in the price range of $400-430/t. Bangladesh’s scrap market was silent amid LC restrictions.

• Turkiye returns to imported market: Turkiye, a prominent scrap buyer, resumed bookings from the last week. The steelmakers and traders returned to the imported market in anticipation of a price hike after the winter holidays. Suppliers resisted lowering their offers due to the material shortage. However, imported scrap prices climbed as Turkish buyers turned active.

SteelMint’s assessment for US-origin HMS 1&2 (80:20) stood at $370-375/t CFR, up by $27-29/t w-o-w.

• Vietnam scrap market on bearish mode: As finished steel market sentiments have not improved, the imported scrap trade in Vietnam was unfavourable. Over the past few weeks, the importing of scrap has slowed down due to the sudden drop in demand.

SteelMint assessment for Japanese H2 material stood at $365/t CFR levels, moving down by $3/t w-o-w. Japanese suppliers continued to lower scrap offers on low interest from overseas buyers.
The assessment for US-origin bulk offers stood at $360/t CFR, unchanged w-o-w. However, buyers were yet to resume bulk cargo bookings.

• Hyundai Steel cuts bids for Japanese scrap: South Korea’s Hyundai Steel resumed bidding for Japanese scrap after a gap of two months. The company cut bids by JPY 5,000/t ($37/t) for H2 grade scrap and by JPY 6,000/t ($44/t) for HS grade against the last bid presented on 6 Oct’22. After revision, bids for H2 scrap stood at JPY 43,000/t ($315/t) while those for HS were at JPY 47,500/t ($348/t) FOB.
• Japanese scrap exports market steady: Major scrap-buying nations started purchasing Japanese material. In spite of this, the export market was fairly steady prior to the Kanto tender in December. As a result of recent offers from South Korea, market players anticipate that prices may move higher.

SteelMint’s assessment for Japanese H2 scrap export prices stood at JPY 43,000-44,000/t ($321-328/t) FOB, unchanged w-o-w.

• Tokyo Steel’s scrap buy price cut continues: Japan’s major EAF steelmaker, Tokyo
  Steel, reduced scrap purchase bids this week. After the final revision, prices of H2 scrap stood at JPY 46,000/t ($332/t) for delivery to the Tahara plant and Okayama plant followed by JPY 46,500/t ($336/t) for the Utsunomiya works.
• Bangladesh’s ferrous scrap market on mute: Opening a new LC for any non-essential item is now prohibited by banks. The government decided to limit LCs to essential daily requirements because of the unpredictability of the currency exchange rates. The government decided to limit the use of LCs to the bare minimum. Due to Turkish scrap buyers starting their purchases in advance of the winter vacations, prices dramatically increased.

Bulk and container market silent: Containerised offers for UK-origin shredded scrap were at $440/t CFR, largely unchanged w-o-w. A small quantity was heard to have booked at $435/t CFR.

Meanwhile, containerised UK-origin HMS 1&2 (80:20) prices were at $417/t CFR Chittagong, largely stable with a $1/t increase w-o-w. Additionally, quotes for bulk scrap of US origin were at $385–390/t CFR, an increase of $10/t w-o-w.

• Imported scrap offers up into Pakistan: Imported scrap offers into Pakistan continued to rise in response to the hike in global scrap prices. However, buyers showed less interest at higher offers. Meanwhile, some deals were heard to have been concluded at $415-420/t levels and the $425-430/t range later in the week. Around 6,000-7,000 t of shredded scrap of EU- origin was booked at the price range of $415-430/t throughout this week.

  SteelMint assessment of UK/Europe-origin shredded scrap in containers was at $433/t CFR, increasing significantly by $21/t w-o-w.

• Indian ferrous scrap market mute with limited deals: This week Indian ferrous scrap market saw very limited work from the trade point of view, as buyers were silent amid weak demand from end-users. The bid-offer disparity kept trade at bay. High offers were supposed to be just the impact of the steel export duty exemption. Meanwhile, eight vessels are expected to arrive at various ports across the country soon.

  SteelMint’s assessment of Europe-origin shredded scrap offers into India were at $433/t CFR Nhava Sheva, down $18/t w-o-w.