Global Ferrous Scrap Market Overview-Week 37

This week imported ferrous scrap market returned after Eid holidays. Turkey showed a little correction in prices towards the beginning of the week but then regained buying interest towards the weekend. India and Pakistan remained out of trade activities but several inquiries were heard with negotiating the prices. However, a drop in scrap purchase prices by South Korean mills witnessed this week.

Turkey’s mills resume buying after holidays – Turkish market has witnessed a marginal fall in offers by USD 3/MT just after a restart from holidays but prices soon regained earlier levels and towards the closing of the week few trades confirmed at new prices. Assessment for US origin HMS now stood at USD 356/MT, CNF Turkey. In last deal concluded, An Iskenderun based steel mill fetched a European origin 17,500 MT of HMS 1&2 (75:25), 7,500 MT new cuttings, 7,500 MT of P&S and 2,500 MT of bales, at an average price of USD 356/MT, CFR Turkey.

Japan’s monthly scrap export tender scheduled on 12 Sept’17 – ‘Kanto Tetsugen’ Japan’s monthly H2 scrap export tender is scheduled on 12th of this month, as it is a most influential price dynamic in Japanese scrap market most of the industry participants were waiting for clearer price trends before this tender.

South Korea’s Hyundai Steel cuts Japanese scrap purchase prices by USD 9/MT – South Korea’s leading steel mill – Hyundai Steel announced a price cut in its scrap buying by Yen 1,000/MT on 1st Sept’17, the first time since last three months. Hyundai Steel bid prices for the H2 grade of scrap now stood at Yen 32,500/MT FoB, Japan.

Indian scrap offers mostly stable, buying remains dull – Imported scrap offers in India continued to be stable on a W-o-W basis. Price assessment was done for Dubai origin HMS 1&2 at USD 315/MT, CFR Nhava Sheva and that for Shredded scrap from UK, USA & Europe is around USD 345/MT, CFR Nhava Sheva. Though buying interest remained low, some buyers continued inquiries with negotiating the prices lower by USD 10/MT than present levels. Domestic scrap being comparatively cheaper continued to remain better choice over imported scrap. Domestic HMS (80:20) prices were assessed at INR 21,600/MT (ex-Mumbai) and INR 20,050/MT (ex-Chennai), basic prices and GST@18% extra.

Pakistan witness slow start after Eid holidays in imported scrap market – Imported scrap offers to Pakistan reopened at the almost similar level on a W-o-W basis. Price assessment for HMS 1& 2 from UK and Dubai stood around USD 320-325/MT, CFR port Qasim and that for Shredded scrap is around USD 345-355/MT, CFR port Qasim depending upon the rating of scrap yards and quality of scrap preferred by buyers. Pakistan based steel mills shared that they have received inquiries for bulk Shredded scrap from China at USD 340-345/MT, CFR but owing to certain issues, the deal could not take place.

Bulk scrap imports to Bangladesh on an upswing – Two more bulk vessels carrying the sum of 38,520 MT ferrous scrap reported in Bangladesh this week. Apart from these two vessels, six vessels carrying a quantity of 162,700 MT scrap has arrived at Anchorage earlier.

Global ferrous scrap prices – Week 37

Source: SteelMint Research.