The global ferrous scrap market was abuzz this week as major market driver, Turkiye, remained active with deals heard throughout the week. After a long pause, Pakistani buyers booked small parcels in order to survive. However, buyers in the country are still under pressure amid the ongoing economic crisis.
Bangladeshi mills continued with containerised deals and bulk cargoes from Japan’s Kanto tender in which prices touched an 11-month high. South Korea’s Hyundai Steel revised bids for Japanese H2 scrap, while Japan’s Tokyo Steel also adjusted scrap purchase prices.
Indian imports of ferrous scrap slowed down as festive fervour gripped the market during Holi.
Turkiye’s import scrap prices at 10-month high: Turkiye‘s imported ferrous scrap market was abuzz this week and scrap prices firmed up on active demand. Prices touched a 10-month high level on active trade. Market sentiments were mixed, regarding the near-term price direction yet negotiations for ferrous scrap continued.
Steel producers are restocking as they need to cater to the demand for rebars for post-earthquake construction activities gathering pace. SteelMint’s daily assessment for HMS 1&2 (80:20) from the US stood at $460-463/t CFR Turkiye. Prices increased by $5-8/t w-o-w.
Pakistan’s imported scrap prices remain high: Pakistan‘s ferrous scrap imported prices were slightly up on supported trade sentiments. The finished steel market movement remained volatile with higher operational costs. However, around 4,000 t of shredded scrap from Europe origin has been booked this week at a price of $490-495/t on CFR Pakistan. Additionally, the government has added an electricity surcharge, increasing the cost of production.
SteelMint’s assessment for imported shredded scrap in containers is $490-495/t CFR, rising by $5/t w-o-w.
Indian market slows down post Holi: Indian ferrous scrap market remained silent over moderate enquiries on account of Holi. Buyers were in festive mood throughout the week. Offers remained range-bound and no major deals heard this week. Mostly the western region of India remained inactive due to prior bookings of Pakistan-routed materials. It has created enough scope for sufficient availability and fresh bookings might be heard in the near term.
SteelMint’s assessment for imported shredded scrap in containers stood at $480/t CFR, unchanged w-o-w.
Bangladeshi mill books bulk cargo from Japan: Bangladesh’s imported scrap market recovered with some containerised deals from contries like New Zealand, Singapore, and Brazil. A bulk scrap booking came to the fore in the recently concluded Japan’s Kanto tender for March 2023. Despite the Letters of Credit (LCs) issue and continuous price hikes, buyers remained somehow active to feed their requirement for the next few weeks.
Containerised offers for UK-origin shredded scrap are at $500-505 /t CFR, remained same w-o-w. Fresh offers for US-origin bulk HMS were heard at $490-95/t CFR Chittagong, up $5-8/t w-o-w.
Kanto tender prices at 11-month high: A total of 18,100 t of scrap was awarded to successful bidders, with an average price of around JPY 55,438/t ($406/t) FAS for H2 scrap, at Japan’s Kanto Tetsugen scrap export tender which concluded on 9 March 2023. Bid prices increased by JPY 2,076 /t ($15/t) m-o-m compared to bids of JPY 53,362/t in February. Bids increased for the third successive month. A significant hike in bid prices was led by material shortage. Turkiye’s increased demand after the earthquake, and the depreciating Yen.
Japan’s Tokyo Steel hikes bids by $15/t: Japan’s major EAF steelmaker, Tokyo Steel, has resumed scrap purchases after a month’s gap on Kanto tender’s outcome. The company has increased buy prices by JPY 2,000/t ($15/t) for all plants, effective 10 March, 2023. After the revision, prices for H2 scrap stand at JPY 55,500/t ($406/t) were delivered to the Tahara, Utsunomiya, and Okayama plants.
South Korea’s Hyundai Steel raises by $22/t: South Korea’s Hyundai Steel has raised bid prices for imported Japanese scrap by JPY 3,000/t ($22/t) after a gap of more than two weeks. Bids for H2 scrap now stand at JPY 54,000/t ($395/t), and those for HS grade are at JPY 57,000/t ($417/t) FOB. The company has raised prices following a rise in bids in the Kanto Cheorwon tender.
Dongkuk Steel has signed a contract of Russian A3 scrap cargo at $419/t CFR basis.
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