Global Ferrous Scrap Market Overview-Week 43

Turkish importers heard to have booked a single deal at lowered offer levels towards ending of the week. Imported ferrous scrap market in India and Bangladesh remained dull with not much trades noticed while a trade deal in containers for shredded scrap heard in Pakistan again this week. Offers heard at negotiated levels in most of the imported scrap markets following global downtrend in offers.

Turkey imported scrap offers slightly fall in the recent trade – This week Turkish market faced strong supply and less demand situation after booking several cargoes last week. Turkey witnessed fall in offers towards the ending of the week by around USD 10/MT on W-o-W basis. Assessment for US origin HMS (80:20) now stood at USD 300/MT, CFR. In a trade deal concluded this week, a steel producer in the Marmara region booked a European cargo, comprising 20,000 MT HMS 1&2 (75:25), 7,000 MT New Cuttings, 3,000 MT Shredded and 5,000 MT of a mixture of P&S and HMS 1, at an average price of USD 300/MT,CFR Turkey.

Hyundai Steel reduced bid prices for H2 Scrap – South Korea leading steel maker – Hyundai Steel placed its bid for Japanese H2 scrap at Yen 30,500/MT, FoB lower by Yen 2,000 from its last bid in September. This reflected weak global scrap prices.

Indian imported scrap offers slightly up, less trades reported – Imported scrap offers to India heard slightly up for HMS by USD 5-10/MT this week on W-o-W basis. As per assessment offers for HMS 1&2 (80:20) in containers for Dubai origin up at the level of USD 310/MT.HMS from UK offered at USD 300/MT by few sellers while HMS 1 assessed from South Africa at USD 315/MT, CFR Nhava Sheva. Offers for Shredded scrap for both UK and Europe origins assessed stable around USD 330/MT, CFR Nhava Sheva. Less trade activities were reported by market participants. Currently, HMS (80:20) in Mumbai is assessed at INR 20,200/MT and that in Chennai is around INR 20,300/MT (Basic prices, GST@18% extra). Though offer volumes in India increased this week but buying interest remained low.

Pakistan scrap importers kept trading Shredded scrap in containers amid falling prices –Imported Shredded scrap offers in Pakistan slipped by USD 5-7/MT on W-o-W basis. Current price assessment for HMS 1&2 from Dubai is around USD 305-310/MT, CFR port Qasim while offers for containerized Shredded scrap from UK and Europe origins fall back at USD 325-330/MT, CFR Port Qasim. A booking for 5,000 MT Shredded scrap from UK confirmed in the container at USD 325/MT, CFR in Pakistan. A trade source shared that overall prices are moving down and expected to go down further for imported scrap in Pakistan.

Imported scrap market in Bangladesh remained quiet; offers stable – Price assessment for Shredded scrap in containers was majorly stable at USD 330-335/MT, CFR Chittagong and also stable for UK origin HMS 1 in containers at USD 330/MT, CFR Chittagong. Few sellers remained quoting scrap materials above USD 335/MT levels but most of the traders and buyers in Bangladesh kept away from booking fresh deals over the non-workable range of offers. Increased freight charges due to port congestion at Chittagong port resisted Bangladesh based steel mills from booking bulk vessels.

Global imported scrap reference prices as on 21 Oct’17-

Source : SteelMint Research