Global Ferrous Scrap Market Overview: Week-2, 2018

This week Japanese ferrous scrap market turned active after resuming from New Year Holidays. Monthly ferrous scrap Kanto Tender fetched H1 bids high by USD 15/MT against last month. Tokyo Steel also raised scrap purchase price at all it works by Yen 500/MT with effect from today.

Turkey – world’s largest ferrous scrap importer witnessed limited trades this week. However few scrap deals reported in week’s beginning in Pakistan hyped the market sentiments. India continued to witness smaller trade deals in containers. Bangladesh based steel mills kept away from imports as local scrap was more lucrative. China’s Shagang Steel cut scrap buying price by further USD 5/MT.

Tokyo Steel hikes scrap purchase price by Yen 500/MT – After keeping domestic scrap purchase prices unchanged for a month, Tokyo Steel has raised scrap purchase prices further by USD 4.5/MT at all its works with effect from 13th Jan’18. Now H2 scrap fetches JPY 37,500/MT (USD 337) at largest work in central Japan-Tahara. While the same grade fetches JPY 36,500/MT (USD 328) at Utsunomiya works in north Japan, H2 bids are placed at JPY 36,000/MT(USD 323) for Okayama and Kyushu works in west Japan while for its Takamatsu Steel Centre company keeps bids at JPY 35,500/MT (USD 319).

Japan’s Monthly Scrap Export Tender Fetches Bids High by USD 15/MT – Japan’s monthly ferrous scrap export tender – Kanto Tetsugen concluded on 12th Jan for Jan’18 month received H1 bid higher by USD 15/MT as against bids in Dec’17. In the auction, 16,000 MT of Japanese H2 scrap was awarded to Econecol Company, Japan through two winning bids placed at JPY 37,800/MT (USD 340), FAS for 6,000 MT and at JPY 37,130 MT, FAS for 10,000 MT scrap respectively. The bids fetched in Jan’18 are hiked by JPY 1,674/MT (USD 15) M-o-M as against last month’s winning bid which was at JPY 36,126 (USD 325).

Turkey imported scrap prices moved up in recent trades – Imported scrap market witnessed limited trades in Turkey this week. The price assessment for US origin HMS 1&2(80:20) remained stable at USD 375/MT, CFR Turkey. Buying was not resumed as expected with slight resistance from buyers at high quoted prices also witnessed in Turkey. Most of the suppliers, however, expect prices to inch up further for remaining Feb’18 shipments. In last deal, Stena company sold 12,000 MT HMS (80:20) at USD 375/MT, 12,000 MT Shredded at USD 380/MT and 4,000 MT bonus at USD 385/MT, CFR Turkey respectively.

China’s Shagang Steel cut scrap purchase prices further by 5 USD /MT- The largest ferrous scrap consumer in China, Shagang Jiangsu Steel cut its domestic scrap buying price by RMB 30/MT (USD 5) this week. Shagang is now paying RMB 2560/MT (USD 394) for HMS scrap not less than 6 mm delivered to its works in China inclusive of 17% VAT. Earlier to this, the company was fetching same grade scrap at RMB 2590/MT (USD 399).Prices for scrap had been quite high in China compare to combine the cost of Iron ore and Coal causing steelmaking through blast furnace more effective. Thus, Shagang has registered fourth consecutive price cut for scrap.

Limited trade deals reported in Indian imported scrap market –Imported scrap offers remained unchanged amid thin trades reported in containers in India this week. Shredded from UK/USA was traded at USD 380/MT, CFR NhavaSheva. Deals of HMS from Central America were concluded at USD 350/MT, PNS offers were at USD 385/MT and Turnings from UK were traded at USD 325-330/MT, CFR.Domestic scrap prices for HMS 1&2 (80:20) in Mumbai is assessed at INR 23,700/MT and in Chennai is around INR 24,500/MT (Basic prices, GST@18% extra).

Pakistan scrap importers remained active – Pakistan scrap importers remained active with strong demand and few thin trades concluded at further rising prices again in this week. Shredded 211 booked in containers from Europe and USA in the range of USD 378-384/MT, CFR Qasim. While leading steelmaker bought5,000 MT Shredded from UK at USD 390/MT, CFR Qasim level. Offers for HMS 1 from USA and Australia assessed at USD 365/MT, CFR Qasim.Offers remained mostly stable on the W-o-W basis.

Bangladesh importers prefer domestic scrap – In Bangladesh, scrap importers remained away from booking amid very high offers again in this week. Latest imported scrap offers from major suppliers moved further by USD 5-7/MT in Bangladesh. Offers for Shredded 211 from USA and Australia are being quoted above USD 400/MT, CFR Chittagong. Offers for containerized HMS 1&2(80:20) from US are around USD 365-370/MT, CFR.Prices for ship breaking assessed stable in Bangladesh at USD 440/LDT for general cargo and USD 430/LDT, CFR for tanker cargoes.

Global scrap reference prices as on 13th Jan’18 -:

Source: SteelMint Research