Global Ferrous Scrap Market Overview: Week 11, 2018

This week imported ferrous scrap prices in Turkey remained flat with no major trade deal concluded in market. Japanese scrap export prices shot up further along with increased domestic purchase prices by Tokyo Steel mill. South Korean mills Dongkuk Steel and Hyundai Steel raised bids for high grades of Japanese scrap amid high demand. However, importers Asian markets like India, Pakistan and Bangladesh remained silent. Shagang Steel cut scrap prices successively over weaken finish steel prices in China.

Hyundai Steel raised high-grade Japanese scrap purchase prices by USD 9/MT – South Korean leading EAF steelmaker Hyundai Steel raised high grade Japanese imported scrap bids by JPY 1000/MT (USD 9). Its latest bids for Shindachi Daichibara (SB) scrap increased to JPY 43,000/MT (USD 406) and for Shindachi Press scrap to JPY 44,000/MT (USD 415) on FOB Japan basis respectively. Prices for H2 grade scrap kept unchanged at JPY 37,000/MT (USD 349), FoB Japan. While prices for low-grade scrap H1/2(50:50), HS and Shredded kept unchanged over easier availability from domestic markets.

Dongkuk Steel increase Japanese scrap purchase prices by USD 9/MT – South Korean steel mill Dongkuk Steel put bids for special H2 grade at JPY 37,500/MT (USD 354), FoB equivalent to JPY 40,000/MT (USD 377), CFR on 14th Mar’18 as against its last bid reported at JPY 36,500/MT (USD 345), FoB in early March.

Tokyo Steel raised scrap prices by USD 5/MT at two works – Japan’s leading EAF steel producer, Tokyo Steel raised its domestic scrap purchase prices by JPY 500/MT (USD 5) at two of its works (i.e. Tahara and Utsunomiya). While Tokyo Steel kept prices unchanged for Okayama, Kyushu and Takamatsu Steel center. Now H2 scrap fetches JPY 38,000/MT (USD 357) at largest work in central Japan-Tahara. While the same grade fetches JPY 37,000/MT (USD 347) at Utsunomiya works in north Japan.

Shagang Steel in China cut scrap prices twice by USD 5/MT – China’s largest scrap consumer Shagang Jiangsu Steel group cut scrap purchase prices twice this week by RMB 30/MT(USD 5) over weak finish steel prices. Shagang is now paying RMB 2,490/MT (USD 392) 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.

Turkey imported scrap prices flat on W-o-W basis – Turkeys’ scrap market paused this week over the less clarity on the impact of imposition of US import tariffs under section 232. Price assessment of USA origin HMS 1&2 (80:20) remained flat USD 375/MT, CFR Turkey with no major deal concluded in the market.

Indian scrap importers turned silent this week – Slowdown in buying interest pulled imported scrap prices down in India. Minor trades in containers concluded at falling prices by around USD 5/MT W-o-W. Offers for Shredded scrap assessed in the range of USD 395-400/MT, CFR Nhava Sheva while HMS 1 from Dubai assessed at USD 380-385/MT, CFR. West Africa and Europe offered HMS 1&2(80:20) at around USD 360-370/MT, CFR. Over limited inventories, buyers are likely to resume imports from next week with more certain market direction. Domestic scrap prices in India exhibited mixed trends. Currently, HMS (80:20) prices in Mumbai and Chennai are assessed in the range of INR 25,300-26,300/MT (USD 391-405) (Basic prices, GST @ 18% extra).

Pakistan observed thin trades for imported scrap – This week Pakistan scrap buyers remained reluctant to book materials at high prices. The market was in the ‘wait and watch’ mode to obverse the impact of imposition of import tariffs by US govt. Few volumes of Shredded 211 in containers booked in the range of USD 390-395/MT, CFR Qasim from USA and UK. HMS 1&2 (80:20)offered at USD 380-385/MT levels. Offers for HMS 1 in containers from UAE assessed in the range of USD 385-388/MT, CFR Port Qasim. While no bulk offers heard this week.

Bangladesh steel mills turned hesitant to book materials at high prices – Imported scrap prices to Bangladesh moved down this week by USD 5-7/MT on W-o-W basis. Shredded 211 scrap assessed at USD 412/MT, CFR while HMS 1 offers remained at around USD 395-400/MT, CFR from Australia and South Africa. Ship breaking prices remained high in the six sales concluded this week at USD 450/LDT for general dry bulk cargo, at USD 470/LDT for tanker cargo and at USD 470/LDT for containers respectively on CNF Bangladesh basis.

Global scrap reference prices as on 17th Mar’18 –

Source: SteelMint Research