Japanese scrap market remained abuzz with positive sentiments as monthly scrap Kanto tender fetched bids higher by USD 12/MT on monthly basis. Also, Tokyo Steel revised scrap purchase price at two of its works with an increase of USD 5/MT. However, amongst Asian markets, Pakistan and Taiwan remained active for imported scrap trades while other markets like India and Bangladesh remained comparatively silent.
Japanese scrap prices move up after Golden week holidays – Japanese scrap market observed momentum this week. In the following week of Golden week holidays, improved trade activities resulted in prices to move up. Kanto Tetsugen, Japan’s monthly ferrous scrap export tender concluded on 10th May in Kanto region for this month. The average bids for May’18 recorded at JPY 34,245/MT (USD 313), FAS which have increased by JPY 1,266/MT (USD 12) on M-o-M basis as against the average bids at JPY 32,979/MT in Apr’18.
Japan’s leading EAF steel mini-mill – Tokyo Steel revised its domestic scrap purchase prices after keeping them unchanged for almost a month’s time. The steel manufacturer has raised the prices by JPY 500/MT (USD 4.57) at two major works i.e. Tahara and Utsunomiya. The revised prices came into effect from 12th May’18. Now H2 scrap fetches JPY 35,000/MT (USD 320) at largest work in central Japan-Tahara. While the same grade fetches JPY 33,500/MT (USD 306) at Utsunomiya work which is based in the Kanto region in north Japan.
South Korean steel mills resumed bids for Japanese scrap with improved sentiments – Hyundai Steel resumed Japanese scrap purchases early this week after a month’s time. Bid for H2 grade scrap remained at Yen 33,000/MT. However, with the increase in scrap prices towards the weekend it is expected that Hyundai Steel will have to raise its bids for Japanese scrap in the coming time.
Imported scrap price assessment in Turkey edge up on depreciating Lira – Turkish currency (Lira) depreciated further this week to 4.314 against USD compared to 4.222 a week ago. Price assessment for US origin HMS (80:20) stands at USD 357-358/MT, CFR Turkey this week against last week’s assessment of USD 355/MT, CFR. Current expectations have increased further to USD 360/MT, CFR. Not many deep-sea cargo bookings were heard this week as domestic steel prices fell with weakened demand in Turkish rebar market this week.
Indian scrap importers remain cautious on currency depreciation – Indian scrap buyers remained away from making fresh bookings amid fluctuating currency and less clarity about price direction in the global scrap market. Prices remained almost stable on weekly premises amid slow down in demand. Few trades for Shredded from USA and UK were reported in the range USD 385-390/MT, CFR Nhava Sheva. Price assessment for South African HMS 1&2 and Dubai HMS 1 stood almost stable at USD 378-383/MT, CFR. West Africa and European HMS assessed at USD 355-360/MT, CFR. Cheap availability of sponge and local scrap kept buyers slow in bookings large volumes for imported scrap.
Domestic scrap prices fell in few markets and witnessed stability in other markets. HMS (80:20) prices assessed at INR 27,100/MT (stable W-o-W) in Mumbai and INR 26,400/MT in Chennai.
Pakistan imported scrap prices remain stable – Pakistan scrap importers remained comparatively strong again this week. however, towards the closing of the week billet G-60 prices in the local market have come down by upto PKR 2000-2500/MT to PKR 80,000/MT, ex-mills including taxes, which kept buyers bounded and activities slightly slowed down. 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. South African HMS assessed at USD 377-380/MT, CFR Qasim. Ship breaking market observed speeding up sentiments as other Asian competitors are less working at the moment.
Bangladesh importers silent over cheaper domestic scrap availability – Bangladesh scrap importers continued to remain inactive again this week as domestic scrap remained cheaper and domestic steel prices also declined. Price assessment for Shredded stands at USD 400-405/MT, CFR Chittagong and around USD 395/MT, CFR for HMS. Domestic scrap prices in Bangladesh remained cost-effective and thus remained preferable. Local melting scrap prices were assessed at BDT 32,000/MT. Ship cutting 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.
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