Japanese scrap market gained momentum as Tokyo Steel hiked its domestic scrap purchase prices twice this week. South Korean domestic scrap prices moved up. Hyundai Steel did not bid for Japanese scrap this week. Indian scrap importers remained cautiously away from imports on currency depreciation while towards the closing of the week Turkish scrap prices plunged amid weakening rebar prices. Pakistan scrap imports remained subdued on Ramadan holidays and heavy load shedding. Also, importers in Bangladesh kept seeking for further price corrections.
Japanese domestic scrap prices keep moving up – Japanese scrap market observed further upward movement this week. The average price index for H2 announced by Japan steel association remained stable at 32,200/MT W-o-W. While for Kanto region it stood at JPY 32,800/MT (up JPY 300 W-o-W). H2 scrap export prices assessed in the range of 34,500-35,000/MT (USD 311-316) FoB for Kanto region.
Tokyo Steel raised its domestic scrap purchase prices twice w.e.f 16th and 19th this week. Now H2 scrap fetches at JPY 35,500/MT (USD 314) for both Utsunomiya and Tahara works. While prices for all grades of scrap remained same as the earlier for South-Western works like Okayama plant, Kyushu factory and Takamatsu Steel center in Japan. The price gap between Kanto region’s Utsunomiya plant and Western Okayama plant widened to JPY 4,000/MT (USD 36) for the same grade H2 in Japan. JPY kept depreciating and USD/JPY rate stood at 111 today which was trading at around 109.2 a week ago.
South Korean domestic scrap purchase prices increase by USD 9-18/MT – Leading steelmakers like Hyundai, Daehan, YK, Posco and SeAH Steel have raised domestic scrap prices by KRW 10,000-20,000/MT (USD 9-18) on increasing purchases. The improving demand and widening price gap between local and imported may result in the hike in import bids for Japanese scrap in the near terms. Hyundai steel contracted for USA Bulk HMS 1 at USD 362.5/MT amid high offers from Russia for A3 grade while the steelmaker did not bid for Japanese scrap this week.
Imported scrap prices in Turkey moved down amid weak rebar prices – Turkish currency (Lira) depreciated further to 4.50 against USD today as compared to 4.31 a week ago. Price assessment for US origin HMS (80:20) dropped to USD 347-348/MT, CFR Turkey as against last weeks’ report of USD 357-358/MT, CFR. On weakening demand and prices in rebar markets, Turkish scrap importers remained less active again this week. Recent trades reported from UK and Europe suppliers pushed assessment indices down by upto USD 8-10/MT W-o-W. Iskenderun based mills booked European cargo comprising 25,000 MT HMS 1&2 (75:25) and 10,000 MT bonus at an average price of USD 341/MT, CFR earlier and a Baltic cargo recently, comprising HMS 1&2 (80:20) at USD 345/MT and Bonus at USD 355/MT, for a spot shipment.
Indian scrap importers remain in ‘wait and watch’ mode – Indian scrap importers remained silent this week on depreciating currency and availability of cheaper domestic scrap and sponge. Imported scrap prices fell marginally on the slowdown in scrap purchases on W-o-W basis but buyers kept seeking for further price corrections in the uncertain global market. Price assessment of UK/Europe origin containerized Shredded stood at USD 383-388/MT, CFR while offers for the same from USA gauged at USD 388-392/MT, CFR Nhava Sheva. South African HMS 1&2 assessed at USD 370-375/MT and Dubai HMS 1 at USD 375-378/MT, CFR Nhava Sheva. Minor trades for West African and European HMS concluded in the range of USD 350-365/MT, CFR depending on the quality of scrap.
DGFT exempted metallic waste and scrap (shredded and unshredded) coming from five ‘safe countries/regions’ (USA, UK, Canada, New Zealand, Australia and the EU-28), from requiring a pre-shipment inspection certificate (PSIC) under the condition that shipments are cleared through six specific Indian ports: Chennai, Tuticorin, Kandla, JNPT, Mumbai and Krishnapatnam.
Domestic scrap prices witnessed an increase in most of the regions this week. HMS (80:20) prices assessed today at INR 27,700/MT (up INR 700 W-o-W) in Mumbai and INR 26,700/MT (up INR 300 W-o-W) in Chennai.
Pakistan scrap importers turned inactive amid fall in billet prices – Local billet prices moved down by PKR 2000-2500/MT this week on heavy load shedding to furnaces allowing them to get electricity supply only for 12-14 hours per day in Pakistan. A technical fault at the Tarbela power plant resulted in the breakdown of electricity in most of Punjab and Khyber Pakhtunkhwa (KP). The price assessment for Shredded scrap from UK/Europe stood at USD 387-390/MT, CFR Port Qasim. While minor trades reported for HMS 1 at around USD 380-382/MT, CFR Qasim from UAE. Scrap importers turned less active with an expectation for further price corrections on the effect of ongoing Ramadan holidays, sharply weakened billet prices and electricity supply cuts.
Imported scrap buying interest subdued in Bangladesh – Amid Ramadan holidays and upcoming monsoon season buying interest from Bangladesh importers remained subdued. Sellers keep quoting for USA/UK Shredded at USD 400-405/MT, CFR Chittagong and for Europe/UK HMS at around USD 390-393/MT, CFR from. Local melting scrap prices were assessed at BDT 36,500-38,000/MT, including 15% taxes and remained cost-effective and preferable. Finish steel demand remained weak although the prices assessed stable W-o-W. Ship cutting prices assessed at USD 420/LDT for general dry bulk cargo, USD 430/LDT for tanker cargo and USD 430/LDT for containers respectively on CNF Bangladesh basis.
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