Lowered interest for Japanese scrap by South Korean mills remained the ‘talk of the week’ as Hyundai Steel is heard to have suspended bids for H2 scrap for about a month’s time. Sources suggest that Japanese scrap exporters are eyeing South Asian markets like India and Bangladesh. Another bulk scrap booking was reported in India this week. Mills in Pakistan continued with their restocking ahead of Ramadan holidays. No revision in bids of Tokyo Steel was noticed this week.
Indian steel mill booked another bulk scrap vessel – As per recent conversations with market participants SteelMint learned that, recently a bulk scrap vessel has been booked in India. A vessel containing 32,000 MT mix-grade scrap has been sold by a leading supplier from USA . A leading scrap importer based in West coast in India booked the vessel comprising 24,000 MT Shredded, 5000 MT P&S and 3000 MT HMS 1&2 scrap at an average price of USD 384/MT, CFR Kandla.
Following healthier sentiments for scrap purchases, the market has also observed several trade deals in containers this week. Shredded from UK/USA sold in containers at USD 388-393/MT, CFR Nhava Sheva. Price assessment for Dubai origin HMS 1 stood at USD 380-385/MT, CFR Nhava Sheva. While West African and European HMS 1&2 assessed in the range of USD 355-365/MT, CFR levels. Offers have moved up USD 5-7/MT on W-o-W basis and the scrap buying activities are expected to remain healthy in coming days in India.
Hyundai Steel suspends bid for low-grade Japanese scrap for a month – Amid sharply rising steel inventories, South Korean leading EAF steelmaker Hyundai Steel has suspended the bid for Japanese scrap for this week. According to sources, over a large number of contracts already in balance with the company and continuing trend of shipbuilding, Hyundai could have stopped scrap purchases. Hyundai Steel’s bids are expected to remain suspended for one month’s time.
Amid falling rebar demand, decline in domestic scrap prices in South Korea and ample availability of H2 grade scrap has prevented South Korean steel mills from bidding for it. Thus these volumes might be directed to South Asian markets.
Pakistan steel mills continue pre-Ramadan restocking – Offers in Pakistan moved up USD 5-7/MT on W-o-W basis amid restocking before Ramadan holidays and increase in billet prices. Pakistan observed few trades at slightly increased prices this week. Importers have booked Shredded scrap in containers around 3000 MT from USA at USD 385/MT and 2000 MT from UK/Europe at USD 380/MT on CFR port Qasim basis. Offers from USA/UK assessed in the range of USD 388-393/MT, CFR Pakistan. HMS 1 from UAE assessed at USD 382-385/MT, CFR.
Imported scrap offers to Bangladesh edge up – Imported scrap market in Bangladesh witnessed rising inquiries this week. Buyers kept showing buying interest at levels down by USD 5-10/MT than current offers. Amid disparity in offers and buying interest expectations, no major deals were reported this week. Shredded scrap offers from Europe assessed at USD 405/MT, CFR Chittagong and Brazil HMS 1 assessed at USD 385/MT, CFR.
Turkey witnessed few trades however activities remain lower side – Price assessment of HMS 1&2 remained at USD 350/MT, CFR Turkey. In last deal, A steel producer in the Iskenderun region booked a European cargo of 30,000 MT of HMS 1&2 (80:20) at USD 348/MT, CFR. Earlier to this, A Benelux based seller, TSR sold 25,000 MT composite cargo containing 12,500 MT HMS 1&2 (75:25) at USD 342/MT and 12,500 MT of Bonus at USD 362/MT, CFR Turkey which pulled assessment for HMS 1&2 (80:20) edged down in Turkey this week. However, trades remained to lower side amid low demand for rebar in export and local markets.
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