Global Ferrous Scrap Market Overview-Week 41

Turkey imported scrap prices climb in the latest deals concluded towards the end of this week.

Turkey kept trading imported scrap at lower price levels hovering around USD 295-300/MT in the beginning of the week. Imported ferrous scrap market in India and Bangladesh remained dull despite of falling offers while few trades in Pakistan were confirmed to have taken place at high prices towards the end of the week. Tokyo Steel in Japan reduced domestic scrap buying prices twice in this week by USD 14/MT.

Turkey imported scrap offers rise in the recent trades – This week Turkish market has witnessed fall in offers towards the beginning of the week by around USD 10/MT on W-o-W basis and assessment for USD origin HMS (80:20) stood at USD 295-300/MT, CFR. However in the latest deals concluded, the assessment has increased to USD 310/MT, CFR.

Tokyo Steel cuts domestic scrap buying prices twice in this week – Japan’s leading steel producer Tokyo Steel has cut scrap purchase prices by Yen 500 and Yen 1000 on 05th and 07th Oct’17 respectively for all grades of scrap at all its five works of the company. Japanese special class H2 scrap now fetches Yen 31,000/MT (USD 275) at Tahara, Utsunomiya, Okayama and Kyushu works and Yen 30,500/MT at Takamatsu steel center.

Indian scrap offers fall further, buying remains subdued – Imported scrap offers to India assessed stable this week for shredded and little down for HMS by USD 5-10/MT on W-o-W basis. As per assessment offers for HMS 1&2 (80:20) in containers for Dubai origin down at the level of USD 280-285/MT and for other major origins assessed at USD 285-290/MT, CFR Nhava Sheva. Offers for Shredded scrap for both UK and Europe origins assessed around USD 310-315/MT, CFR Nhava Sheva. Buying activities remain dull owing to an inert mood of buyers and slower comeback from the festive holidays for Dussehra. Most of the steel mills are still preferring domestic scrap over the price margin and faster deliveries than imported scrap. Currently, HMS (80:20) in Mumbai is assessed at INR 20,000/MT and that in Chennai is around INR 20,200/MT (Basic prices, GST @ 18% extra).

Pakistan steel mills booked shredded scrap at lifted prices – Imported scrap offers in Pakistan slipped by USD 5-7 earlier this week but towards the end, increased back on fresh buying from local steel mills and traders. Current price assessment for HMS 1&2 from Dubai stood around USD 310/MT, CFR port Qasim while offers for containerized Shredded scrap for UK and Europe origins gained back at USD 320/MT, CFR Port Qasim. Most of the major suppliers weren’t willing to sold materials at lowered levels. A trade deal carried out recently for Shredded scrap from UK origin was concluded at USD 320/MT, CFR Qasim while one which was booked earlier for 1000 MT shredded from Europe fetched USD 303/MT, CFR.

Thin trade activities reported in Bangladesh this week – Price assessment for Shredded scrap (ISRI 211) in containers for Brazil and UK origins have come down by USD 10-15/MT to USD 330-335/MT, CFR Chittagong and for Dubai origin, HMS 1 scrap in containers is at USD 328/MT, CFR Chittagong. Offers for P&S scrap heard at USD 332/MT for Brazil and UK origins. A source shared that few deals for containerized HMS (80:20) from US origin materials concluded at USD 320/MT, CFR this week amid increasing buying interest. Increased freight charges due to port congestion at Chittagong port resisted Bangladesh based steel mills from booking bulk vessels.

Global reference imported scrap prices as on 07 Oct’17-

Source: SteelMint Research