This week global scrap market was characterized by hike in Shagang Steel prices in China and high prices in Turkey over currency depreciation. Japanese scrap trades remained absent owing to ongoing holidays. Pakistan remained comparatively active in booking scrap over other Asian markets like India and Bangladesh.
China’s Shagang Steel raised scrap purchase prices by USD 16/MT – One of the largest ferrous scrap consumers in east China- Shagang Jiangsu Steel group raised its scrap purchase prices by Chinese Yuan 100/MT (USD 16) on 03 May’18. As per latest price updates received, Shagang is now paying RMB 2,400/MT (USD 378) inclusive of 17% VAT for HMS (6-10 mm in thickness) delivered to its headquarter works situated in Zhangjiagang Province in China. The company also increased its rebar and wire rod prices by RMB 130/MT and RMB 150/MT respectively for early May.
Turkey imported scrap offers to rise further on falling Lira – Imported scrap buyers in Turkey remained active booking material from Baltic region. Around 20 cargoes for May were heard to be booked on increasing domestic rebar prices. Price assessment for US origin HMS 80:20 stands at USD 355-360/MT, CFR. Turkish Lira has depreciated to record low. Today USD/TRY rate depreciated further and stood at 4.23 which was trading at around 4.07 a week ago. Widening current account deficit, preponing of upcoming elections are few of the major reasons that have resulted in Turkish currency depreciation. The importers might seek clarity before booking cargoes at higher prices owing to currency depreciation.
Imported scrap prices in India stable; buying activities remain intact – Imported scrap prices in Indian markets remained stable this week. Assessment for Shredded scrap in containers stands at USD 390/MT, CFR Nhava Sheva and USD 395/MT, CFR for UK origin P&S. West Africa HMS is assessed at USD 360/MT, CFR.
Domestic scrap prices moved up. HMS (80:20) prices assessed at INR 27,000-27,200/MT (+INR 800/MT W-o-W) in Mumbai and INR 26,400-26,600/MT (+INR 200/MT W-o-W) in Chennai.
Pakistan Scrap Importers remain active on strong steel market – Pakistan scrap market remained heated up this week over two main reasons – first, successively rising billet and finish steel prices in the local markets and another, low stocks available with small-scale importers. Optimistic sentiments about the market which usually turns active after Ramadan holidays has encouraged small-scale scrap importers to increase their restocking activities.
The price assessment for Shredded scrap from USA and UK remain stable W-o-W at USD 388-393/MT, CFR Port Qasim. Offers for HMS 1 scrap from UAE stood at around USD 382-385/MT, CFR Qasim.
Bangladesh importers silent over cheaper domestic scrap availability – Bangladesh scrap importers continued to remain inactive this week too as domestic scrap remained more cheaper and domestic steel prices also declined. Price assessment for Shredded stands at USD 395-400/MT, CFR Chittagong. Falling steel prices and dull demand was seen in ship breaking as well. Prices assessed at USD 420/LDT for general dry bulk cargo, at USD 430/LDT for tanker cargo and at USD 430/LDT for containers respectively on CNF Bangladesh basis.
Japanese market turned silent on Golden week holidays – No scrap trades were reported by South Korean steel mills for Japanese scrap owing to ongoing Golden week holidays. Japanese scrap suppliers are eyeing for stronger price trend after holidays. However South Korean steel mills slashed domestic scrap purchase price.
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