Weekly round-up: Global ferrous scrap market remains active on healthy South Asian bids

Global ferrous scrap prices remained on the higher side after last week’s round of buying by Turkish mills, but trades remained moderate as Vietnamese mills were silent after the Kanto tender. Shagang Steel increased its scrap procurement prices once this week followed by Tokyo Steel raising prices after over a month.

Similarly, South Asian ferrous scrap prices increased amid a fresh round of booking by Indian mills and Pakistani scrap buyers. However, Bangladeshi buyers started procuring through small deals towards the middle of this week, but are still challenged by LC opening issues.

• Turkish scrap prices range-bound w-o-w: In Turkiye‘s import scrap market, nothing has changed in terms of prices amid limited buying interest due to measured trade activities in finished long steel, specifically rebars. A lone deal was concluded towards the end of last week at $384/t. SteelMint’s assessment for US-origin HMS 1&2 (80:20) stood at $387/t CFR, up by 6/t w-o-w.

• Vietnamese ferrous scrap market silent post-Kanto: Vietnam‘s imported scrap market is mostly silent after the recently-concluded Japanese bellwether Kanto Tetsugen tender. SteelMint’s assessment for Japanese H2 material stood at $398/t CFR levels, moving up by $13/t w-o-w. The assessment for US-origin bulk offers stood at $395/t CFR, up by 13/t w-o-w.

• South Korea’s Hyundai Steel raises bid for H2 scrap: Hyundai Steel has increased bids for Japanese H2 scrap by JPY 6,000/t ($44/t) and for HS grades by JPY 5,500/t ($40/t) against the last bid on 1 December. Bids for H2 scrap are at JPY 49,000/t ($356/t), while for HS the bid is at JPY 53,000/t ($385/t) FOB. After Kanto’s monthly export tender, Hyundai Steel raised its bids.
• Scrap export offers in Japan high after Kanto tender: Japanese scrap export offers continue to rise on active buying inquiries from domestic and overseas markets. Additionally, prices continued to move up after the Kanto tender concluded on 9 December at increased levels, and prominent buying countries like South Korea and Vietnam are ready to place bids for Japanese scrap.SteelMint’s assessment for Japanese H2 scrap export prices stands at JPY 48,000-49,000/t ($350-357/t) FOB, moving up by JPY 1,500-2,000/t ($11-15/t) w-o-w. Prices are now hovering at one-month highs.
• Tokyo scrap buy prices jump by $22/t this week: Japan’s major EAF steelmaker, Tokyo Steel, has resumed increasing scrap purchase prices after a month’s break. The company lifted bids for H2 scrap by JPY 3,000/t ($22/t) for all its plants effective 14 December. Post-revision, prices for H2 stand at JPY 49,000/t ($356/t) delivered to the Tahara, Utsunomiya, and Okayama plants.
• Shagang Steel continues to lift scrap buy prices: Jiangsu Shagang Group raised scrap buying prices this week by RMB 80/t ($12/t) for all grades of HMS (6-10 mm). Prices stood at RMB 3,090/t ($444/t) delivered to headquarters, including 13% VAT. Following the positive trend in Chinese finished steel prices, the company has increased its bids to secure more scrap before the holidays.

• Bangladesh ferrous scrap market less active: The imported ferrous scrap trade in Bangladesh is still not improving despite recent Turkish deals having pulled up prices. The entire steel sector is grappling with challenges in the form of rising production costs, power shortages, and restraints on LC opening.
• Pakistan scrap prices hit two-month high: Pakistan‘s imported scrap prices have neared almost two-month highs but buyers are active in the market. The low material availability in domestic and overseas markets remained the major reason for the sudden price hike. Meanwhile, steelmakers have shown some interest in booking small lots of containerized material, alarmed by the scarcity. SteelMint’s assessment of UK/Europe-origin shredded scrap in containers stood at $445/t CFR, and remained stable w-o-w.
• Indian ferrous scrap market sluggish: India scrap imports slowed down this week, due to slow finished steel demand. Suppliers are looking to sell material at high prices before the winter holidays.
  SteelMint’s assessments for UK/EU-origin shredded are now at $445-450/t CFR levels, up by $6/t w-o-w.