Global Ferrous Scrap Market Overview – Week 13, 2018

This week observed softening in global scrap prices. Domestic and export prices of Japanese scrap declined sharply. Chinese steel mill – Shagang Steel reduced domestic scrap purchase prices twice this week. On the other hand, imported scrap prices in Turkey remained stable throughout the week and the week witnessed one deep sea cargo booking. Scrap importers in countries like India, Pakistan and Bangladesh also remained silent eyeing for drop in offers.

Japanese steel mill slashes bid for scrap – Tokyo Steel has reduced its domestic scrap purchase prices by Yen 1000/MT (USD 9). Now H2 scrap fetches JPY 37,000/MT (USD 349) at largest work in central Japan-Tahara. While the same grade fetches JPY 36,500/MT (USD 344) at Utsunomiya works in north Japan. While for its Okayama plant, Kyushu factory Takamatsu Steel Center Company bids are at JPY 34,000/MT at JPY 34,500/MT and JPY 33,500/MT respectively.

Scrap prices in Japan have softened amid decline in scrap prices in Kanto and Gulf regions. Bids in Gulf region are still lower by Yen 500/MT lower than other regions. Also higher scrap inventories with EAF steel manufacturers than demand has also put scrap bids under pressure.

Hyundai Steel bids Yen 1000 lower for high grade Japanese scrap – Bids put by Hyundai Steel for both Shredded and HS are assessed at JPY 39,000/MT (USD 367) respectively. Its latest bids presented for high-grade scrap like Shindachi Daichibara (SB) and Shindachi Press at JPY 42,000/MT (USD 395) and at JPY 43,000/MT (USD 405) on FOB Japan basis respectively. However Hyundai Steel skipped placing bids for H2 grade and H1/2 this time as they see sufficient supply for the material along with sufficient scrap inventories available with them.

China’s Shagang Steel reduced domestic scrap purchase prices twice – One of the largest ferrous scrap consumers in China, Shagang Jiangsu Steel group slashed its scrap purchase prices twice this week on 26th and 27th Mar’18 by USD 24/MT and USD 8/MT respectively. Shagang is now paying RMB 2,200/MT (USD 350) inclusive of 17% VAT for HMS not lesser than 6 mm in thickness delivered to its headquarter works in Zhangjiagang Province in China.

Turkey imported scrap prices stable, one deep sea cargo booking reported – On weekly basis, US origin HMS (80:20) prices are assessed at USD 368-369/MT, CFR Turkey. As per reports, a European cargo was booked recently by Turkish steel mills. The cargo comprised of 5,000 MT HMS (75:25), 20,000 MT Shredded scrap and 5,000 MT Bonus scrap. The average price of the deal was assessed around USD 375/MT, CFR for April shipment.

Imported scrap trade activities in India, Bangladesh and Pakistan remain dull – Imported scrap prices in India remained stable this week with buyers keeping away from imported material. Buyers are likely to resume bookings in next couple of weeks. Shredded scrap price assessment stands at USD 395-400/MT, CFR India.

Bangladesh based importers also remained silent and buyers kept looking for lower offers. Offers for Shredded scrap in containers from USA are heard around USD 405/MT, CFR Chittagong and HMS1 is being quoted around USD 390/MT, CFR levels. As per sources, last week a bulk scrap cargo containing Shredded scrap of 35,000 MT US origin was booked at around USD 430/MT, CFR.

Pakistan imported scrap market also remained silent and kept seeking lower offers. Price assessment for Shredded scrap 211 is around USD 388-395/MT, CFR Port Qasim depending on the origin.

Global ferrous scrap prices – Week 13,2018

Source: SteelMint Research