Global ferrous scrap prices went up as recent deals took place from Turkiye at higher prices with an improvement in the domestic market.
Meanwhile, South Asia’s ferrous scrap market showed a mixed trend, with a lately active Bangladesh market, limited deals in the Indian ferrous scrap market, and a silent Pakistani market before the holidays.
Highlights-
Turkiye books US scrap deals: A recently concluded US deal to Turkiye pushed up imported scrap prices this week. After waiting for a week and anticipating a rise in demand for finished steel, mills started accepting bookings again. Also this week, a few deals of North Europe- and USA-origins were concluded.
- A western Maramara-based steel mill booked bulk cargo from the US. It comprised HMS (80:20) which was booked at a higher price of $387/t CFR Turkiye.
- A Habas-based steel producer booked two bulk cargoes. One cargo from Cronimet of USA comprised HMS (80:20) which was booked at $386.5/t and bonus at $406.5/t on CFR basis. Another cargo from Stena EU-origin comprised HMS (80:20) which was booked at $387/t, shredded, and bonus at $407/t on CFR basis.
SteelMint’s daily assessment for HMS 1&2 (80:20) from the US remained stable at $385/t CFR Turkiye.
Imported scrap trade improves in Bangladesh: The imported scrap market in Bangladesh witnessed some activity this week after nearly two months of silence. Market sentiment improved, according to industry experts, and sporadic contracts were reportedly made in the past several days.
However, domestic market sentiments were fluctuating amid concerns of limited capital flow and establishing new LCs, particularly among reputable mills in Chattogram that prefer letters of credit for bulk scrap vessels.
- Bulk scrap offers increase: Offers for imported bulk scrap climbed substantially. However, for bulk cargo bookings, buyers were oddly silent.
Indicative offers for Japanese H2 were at $425/t CFR, moving up by over $13/t w-o-w after the recently-concluded Kanto tender.
Furthermore, US-origin bulk scrap offers were quoted at $432/t CFR, up by $11/ w-o-w.
Pakistan’s imported scrap market mostly silent w-o-w: Pakistan’s imported scrap market was quiet this week, tracking bearish global trends amid measured finished steel demand in the domestic market along with some financial difficulties, which were largely in sync with Turkiye’s scrap buying behavior. Prices are likely to remain stable and a sharp correction is unlikely owing to the approaching winter holidays.
Offers for UK/Europe-origin shredded scrap in containers stood at $440/t CFR, down $7/t w-o-w. However, sellers were still offering at $443-45/t CFR levels.
Indian scrap buyers largely quiet: Indian ferrous scrap market saw limited deals throughout the week as steel producers adopted a wait-and-watch mode. Meanwhile, the imported scrap prices continued to move up as Turkish mills resumed their bookings for after-holiday shipments. But the impact on the domestic market was minor, as per market sources amid weak demand before the holidays.
Further, Indian major mills were waiting for their bulk cargo arrivals by year-end. Buyers were less interested in booking any fresh slots in containers or in bulk.
SteelMint’s assessment for Europe-origin shredded was recorded at $445-450/t CFR levels, stable throughout the week.
Japanese scrap export offers remain upwards w-o-w: Despite the heightened interest from market participants, few deals for Japanese material were ever made. As prices kept rising, there was a noticeable increase in demand for high-quality scrap.
The assessment for Japanese H2 scrap export prices by SteelMint stood at JPY 50,000-51,000/t ($377-384/t) FOB, up JPY 2,000/t ($15/t) w-o-w. Prices reached a three-month high.
South Korea’s Hyundai Steel hikes bids for Japanese scrap w-o-w: Hyundai Steel, a major producer of steel in South Korea, hiked prices for Japanese scrap by JPY 1,000/t (about $8/t) w-o-w for the second week in a row. Bids were set at JPY 50,000/t ($379/t) for H2 scrap and JPY 54,000/t ($409/t) for HS. Prices are on FOB basis.
Because of an increase in local demand, Hyundai Steel is still placing bids for Japanese scrap.
Vietnam scrap prices stable amid weak demand: Vietnam’s low finished steel demand made imported scrap trading activities slow in the last week which put pressure on scrap prices.
However, steel major Hoa Phat reportedly purchased a 30,000 t deep-sea cargo last weekend at an average price of about $410/t CFR. The shipment included 15,000 t of HMS 1&2 (80:20), 10,000 t of shredded, and 5,000 t of PNS. In advance of the upcoming Tet holidays at the end of January, mills sourced material.
SteelMint’s assessment for Japanese H2 material stood at $398/t CFR, largely stable w-o-w. The assessment for US-origin bulk offers stood at $395/t CFR, down by $3/t w-o-w.
China’s Shagang Steel scrap buy prices fall: Jiangsu Shagang Group decreased scrap prices for all grades of HMS for the first time this week by RMB 50/t ($7/t). Prices were adjusted at RMB 3,040/t ($435/t), including 13% VAT, delivered to headquarters. Amid decreased demand and reduced sales, the company lowered prices after two consecutive hikes.
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