Major global scrap markets exhibited bearish sentiments on very limited activities reported this week. Prices continued correction in Asian markets, however, indications of prices to have reached bottom emerged towards the closing of the week. Turkish steel mills may start accepting slightly high prices for remaining March shipments as US suppliers’ eye high offers on expectations of demand to remain decent in March. South Korean steel mills turned silent over high scrap inventories. While tight supply pulled Japanese domestic prices up witnessing three successive price hikes by Tokyo Steel this week. Indian scrap importers stepped back from buying amid trade tensions with Pakistan. Chinese Shagang steel kept scrap prices unchanged for more than a months’ time.
Turkey imported scrap prices recover towards weekend – According to SteelMint’s price assessment, US origin HMS (80:20) scrap stands at USD 313/MT, CFR Turkey. While HMS 1&2 (80:20) of Europe origin stands at around USD 307-308/MT, CFR.
Recently US supplier sold 10,000 MT HMS (80:20) at USD 313/MT, 10,000 MT Shredded at USD 318/MT and 10,000 MT Bonus scrap at USD 323/MT to Iskenderun based steel mill. Another March shipment cargo was booked comprising 25,000 MT HMS 1&2 (80:20) at USD 310.5/MT and 5,000 MT Bonus at USD 320.5/MT, CFR. Turkish rebar prices in domestic and export markets remained rangebound amid subdued demand.
Japan’s Tokyo Steel hiked scrap purchase price thrice this week – Tokyo Steel hiked domestic scrap price by a total JPY 1,500/MT in three price hikes made at all five works in Japan. The steelmaker is paying JPY 34,500/MT (USD 308) for H2 scrap delivered to Utsunomiya plant situated in the Kanto region. H2 prices stand JPY 33,500/MT at the largest plant Tahara and JPY 31,500/MT at Okayama works. While H2 selling price stands in the range JPY 33,500-35,500/MT, FoB. Suppliers eye high offers amid recent depreciation of JPY against USD and tight scrap supply.
China’s domestic scrap prices unchanged – China’s largest scrap consumer, Shagang maintained scrap prices unchanged at RMB 2,650/MT inclusive of 16% VAT for HMS (6-10 mm thickness) in Zhangjiagang.
Indian imported scrap prices fell further, limited trades reported – Indian scrap importers remained less active amid bearish sentiments, trade tensions between India and Pakistan and hike in scrap cargo freight rates this week. Prices moved down around USD 10/MT W-o-W for the second successive week. SteelMint’s assessment for containerized Shredded fell in the range USD 325-330/MT, CFR Nhava Sheva amid very limited trades reported while offers from suppliers were being quoted mostly in the range USD 330-335/MT, CFR.
HMS 1 from Dubai and South Africa traded in the range USD 322-330/MT, CFR while West African HMS assessed USD 300-310/MT, CFR. After dropping further domestic scrap prices have recovered back by INR 400-600/MT W-o-W to INR 25,300-25,500/MT, ex-Mumbai in the second half this week.
India’s DGFT exempted PSIC for Metal Scrap Imports at Mundra Port. Now, metallic waste & scrap imported from safe countries/regions i.e US, UK, Canada, New Zealand, Australia and EU will not require PSIC if consignments are cleared through 7 ports including Mundra.
Pakistan scrap buying interest dull amid flat local steel sentiments – SteelMint’s price assessment for Shredded moved down USD 10-15/MT W-o-W in the range USD 325-330/MT, CFR Qasim. Asking rates for Shredded form UK and US reported in the range USD 330-332/MT, CFR. HMS 1 from UAE sold in containers at around USD 325-327/MT, CFR and from UK in the range USD 307-310/MT, CFR while HMS 1&2 (80:20) from Europe was being quoted at around USD 305/MT, CFR Qasim.
Local steel market has seen no changes with little-to-no activity since the past couple of weeks. Prices for Bala billet remained flat at around PKR 74,000-74,500/MT and Steel Melters Association appealed the government to grant some time in order to discuss issues being faced by the steel industry.
Bangladesh buyers limit imported scrap trades – SteelMint’s price assessment for Shredded scrap moved down by USD 5-10/MT W-o-W in the range USD 340-345/MT, CFR. Containerized HMS 1 from Chile, Brazil and South Africa traded at around USD 335/MT, CFR, PNS scrap stands at around USD 355-360/MT, CFR and Bushelling at around USD 370/MT, CFR. Local HMS prices stand stable at BDT 35,500/MT while shipyard scrap prices recovered to BDT 37,500-37,800/MT levels after falling last week. Local rebar prices inched up in the second half over improving local demand.
Vietnam scrap buyers eye further correction – Offers for bulk HMS (80:20) assessed from US at around USD 335-340/MT, CFR and at USD 340/MT, CFR Vietnam from Australia. A northern region based steel mill booked Hong Kong origin HMS 1&2 (50:50) in bulk at around USD 339-340/MT, CFR. Japanese H2 bids heard around USD 330-332/MT, CFR. Trade sources highlighted that most of the steel mills likely to wait for the next couple of weeks to start booking end-April & May shipments.
Leave a Reply