Global Ferrous Scrap Market Overview: Week 10, 2018

This week imported ferrous scrap prices continued marching up in major scrap markets. Importers in Turkey booked several April Shipment cargoes for scrap over robust finish steel prices. Japanese scrap export prices shoot up in Kanto and Kansai tenders pushing domestic scrap prices upwards. While following rising bids from major South Korean steel mills Hyundai steel mill raised bids twice this week for Japanese scrap. Bangladesh steel mills booked 2 more bulk scrap vessels at high prices along with few trades in containers. While, Pakistan, Taiwan and India observed several trades for containerized scrap despite an uptick in prices over strong fundaments. Shagang Steel raised scrap prices sharply after keeping unchanged for seven weeks’ in China.

Japan’s Kanto Tetsugen scrap export tender fetched higher bids – Japan’s monthly ferrous scrap export tender – Kanto Tetsugen has recorded average bids up by USD 26/MT for Mar’18. The average bids for Mar’18 recorded at JPY 37,520/MT (USD 352), FAS as against the average bids at JPY 34,750/MT (USD 326) in Feb’18. In the auction, 20,000 MT of Japanese H2 scrap was awarded to Toyoto Tsusho Company, Japan through two winning bids placed at JPY 37,570/MT (USD 352), FAS for 10,000 MT and at JPY 37,470 MT (USD 351), FAS for 10,000 MT scrap respectively.

Japan fetched higher bids in Kansai tender – Kansai Tetsugen, an association of scrap dealers around Osaka region in Japan conducted scrap export tender on 05 Mar’18 after last tender concluded in Oct’17. JFE Shoji Company awarded as the H1 bidder with the winning bid fetched for H2 grade scrap at JPY 36,550/MT (USD 344) on FAS basis.

Hyundai Steel raised Japanese scrap purchase prices twice this week – South Korean leading EAF steelmaker Hyundai Steel raised Japanese imported scrap bids by JPY 1000/MT (USD 9) on 5th Mar’18 and again by JPY 500/MT (USD 5) on 9th Mar’18. Its latest bid put for H2 grade scrap was at JPY 37,000/MT (USD 346), FoB Japan against its last bid which was at JPY 35,500/MT (USD 332), FoB Japan earlier to these two revisions.

Turkey imported scrap prices move up on W-o-W basis – Turkey witnessed boosted finish steel sales both in exports and local markets again this week, The latest deals confirmed in Turkey pushed price assessment of USA origin HMS 1&2(80:20) up by USD 8-10/MT at USD 376/MT, CFR Turkey. In a recent deal concluded, Marmara based steel mill booked 35,000 MT Baltic origin cargo comprising 28,000 MT of HMS 1&2(80:20) at USD 375.25/MT and 7,000 MT Bonus scrap at USD 385.75/MT respectively on CFR Marmara basis for April shipment. Turkeys’ rebar exports and domestic prices increased by USD 15-25/MT on W-o-W basis.

Chinese Shagang Steel raised scrap prices by USD 24/MT – China’s largest scrap consumer Shagang Jiangsu Steel group raised scrap purchase prices by RMB 150/MT(USD 24) and finish long steel prices by RMB 250/MT(USD 40) early March. Shagang is now paying RMB 2,550/MT (USD 403) inclusive of 17% VAT for heavy melting scrap not lesser than 6 mm in thickness delivered to its headquarter works in Zhangjiagang Province in China.

Indian scrap importers traded mostly in containers despite high prices – Following robust global scrap prices, Indian imported scrap offers moved up this week by USD 5-10/MT on W-o-W basis. Indian scrap importers booked around 6,000-8,000 MT volumes in containers in few deals confirmed. Shredded scrap traded from UK and USA origin in the range of USD 400-405/MT, CFR Nhava Sheva. While HMS 1&2 (80:20) in containers assessed stable at around USD 380/MT, CFR from Dubai, at USD 360-370/MT, CFR from West Africa and at USD 375/MT, CFR from UK origin respectively.

Pakistan imported scrap prices increased in recent trades – Imported scrap prices in Pakistan lift further on strong global scrap prices, local scrap shortage and improving domestic finish steel prices. Shredded 211 in containers booked in the range of USD 400-405/MT, CFR Qasim from UK/Europe in the several trade deals seen. Bulk cargo from USA was offered at around USD 415/MT, CFR but no booking heard. HMS 1 from Dubai assessed at USD 385-390/MT, CFR. HMS 1&2 (80:20) traded at USD 380-385/MT levels. Ship breaking prices remained firm W-o-W at USD 440/LDT for dry bulk cargo and at USD 450/LDT for containers on CNF Pakistan basis with no sale reported.

Bangladesh steel mills booked two more bulk cargoes at high prices – Imported scrap prices to Bangladesh shot up further in two bulk bookings confirmed this week. A vessel comprising 35,000 MT of Shredded scrap and another vessel comprising 40,000 MT of composite scrap booked from USA based suppliers at around USD 425/MT, CFR. Importers remained paying high in containers also owing to increased freight charges. Price assessment moved up by USD 5-10/MT on W-o-W basis. Shredded scrap sold in the range of USD 416-420/MT, CFR while HMS1 booked at around USD 405/MT, CFR. Current offers are around USD 418-422/MT, CFR for Shredded and HMS 1&2 in containers from West Africa and Australia heard at around USD 400-405/MT, CFR.

Global scrap reference prices as on 10th Mar’18 –

Source: SteelMint Research