Global Ferrous Scrap Market Overview: Week 14, 2018

This week observed further weakening in global scrap prices. Domestic and export prices in Japanese scrap market declined sharply. Turkey witnessed few deals at weakened prices after remaining out of the market for almost 3 week’s time. Imported scrap offers to Asian market corrected downward by USD 5-10/MT and thin trades reported in countries like India and Pakistan. Offers to Taiwan slashed almost USD 10-15/MT on W-o-W basis while Bangladesh based importers kept eyeing for further price corrections. Chinese scrap prices remained unchanged on lessening activities amid national holidays.

Hyundai Steel bids JPY 1000/MT lower for Japanese scrap – South Korean leading EAF steelmaker Hyundai Steel slashed Japanese imported scrap bids by JPY 1000/MT for this week. After skipping bids for H2 last week, this week bid for H2 grade scrap remained at JPY 35,000/MT (USD 327), FoB Japan while new prices for other low grades like H1/2 (50:50) are at JPY 35,500/MT (USD 332) and for both Shredded and HS prices assessed at JPY 38,000/MT (USD 355) respectively. Its latest bids presented for high-grade scrap Shindachi Daichibara (SB) remained at JPY 41,000/MT (USD 383) on FOB Japan. While bid for Shindachi Press was not presented for this week over the ample inventories available in hand.

Many of the leading South Korean steel makers like Hyundai, Dongkuk, SeAH, YK, and Posco have recently reduced domestic scrap purchase prices by the range of KRW 10,000-15,000/MT (USD 9-14).

Tokyo Steel slashed scrap prices twice in a week’s time – Japan’s leading mini mill, Tokyo Steel cut its domestic scrap purchase prices twice on 4th and 6th April respectively. Prices dropped by JPY 2000/MT and JPY 1500/MT at Utsunomiya works in Kanto region and Tahara in central Japan respectively. While prices have come down by USD 1000/MT for other works like Okayama, Kyushu and Takamatsu Steel center. Now H2 scrap fetches JPY 35,500/MT (USD 332) at Tahara and JPY 34,500/MT (USD 322) at Utsunomiya works. After the recent price cut, H2 scrap prices in Tahara plant have dropped to nearly 5 months low as the price of JPY 35,500/MT was last seen on 22 Nov’17.

Domestic scrap prices in Japan plummeted – Domestic scrap prices plummeted for the first week of April in Japan. The average price index for H2 scrap decreased to JPY 34,400/MT (USD 322) down by JPY 1000/MT on W-o-W basis. For Kanto region, H2 scrap price index assessed at JPY 35,300/MT (down JPY 1500/MT W-o-W) and for Central and Kansai regions price indices moved down by JPY 800/MT at JPY 33,500/MT and JPY 34,100/MT respectively. Also, higher scrap inventories with EAF steel manufacturers than demand has also put scrap bids under pressure.

Turkey imported scrap prices tumble on recent deals reported – USA origin HMS (80:20) price assessment fell at USD 354/MT, CFR Turkey down USD 12-14/MT on W-o-W basis. As per reports, in a recent deal concluded an Izmir based importer booked a cargo comprising HMS 1&2(80:20) at USD 353.5/MT and Bonus at USD 363.5/MT, CFR Turkey. while an importer ICDAS based in Marmara region in Turkey booked 25,000 MT mix cargo comprising 17,000 MT of HMS 1&2 (75:25), 4,000 MT Bonus and 4,000 MT Busheling scrap at an average price of USD 355.5/MT respectively. Following increasing purchase activities from Baltic and European suppliers to Turkey higher than USA materials scrap export offers from USA have come under pressure.

China’s Shagang Steel domestic scrap purchase prices remained unchanged – One of the largest ferrous scrap consumers in China, Shagang Jiangsu Steel group kept its scrap purchase prices unchanged this week. 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. However, Chinese market remained out of working for national holidays and likely to come back in the next week.

Imported scrap trade activities in India and Pakistan gain momentum – Imported scrap offers in Asian markets fall around USD 5-10/MT on W-o-W basis. Containerized Shredded scrap was booked at USD 388-390/MT, CFR Nhava Sheva in India and 5000 MT at USD 385/MT, CFR Port Qasim in Pakistan respectively. HMS 1 booked at USD 375/MT, CFR Mundra from South Africa in India while price assessment for HMS 1 scrap from Dubai stood at around USD 375-380/MT, CFR both in India and Pakistan.  Slight corrections in the offers are anticipated however steep price fall looks limited now. Bookings for May months arrivals may gain momentum as there is still one months’ time for Ramadan festival holidays in India and Pakistan.

Bangladesh scrap importers remained waiting for further corrections – Offers for Shredded scrap remained at around USD 395-400/MT, CFR Bangladesh from Europe and UK. HMS 1 quoted at USD 385/MT, CFR Chittagong from Dubai and Brazil. Buyers remained away from booking scrap amid fall in rebar prices and importers are eyeing for a further decline in offers.

Global ferrous scrap prices – Week 14, 2018 –

Source: SteelMint Research