Global ferrous scrap prices witnessed an upward trend in most markets this week. Turkey witnessed a flurry of cargo bookings towards the closing of the week amid strengthening of finished steel export. Hyundai Steel lowered Japanese scrap purchase bids by another JPY 500/MT while Japanese domestic scrap prices remained unchanged with weak local steel demand. Asian markets observed recovery in prices and trade is expected to pick up in coming days. Sentiments in global markets are likely to remain supported in the near terms.
Imported scrap prices in Turkey surge USD 20-25/MT on strong buying – Turkish steel mills turned active towards the closing of the week with several bulk cargo bookings reported at sharply increased prices against last week. With tariff reduction on Turkish steel import by the USA, finish steel prices observed recovery supporting scrap imports in the country.
In the latest deal, a Benelux origin supplier sold a mixed cargo to a Samsun based steelmaker comprising 7,500 MT HMS 1&2 (75:25), 22,000 MT of mixture of P&S and HMS1 scrap, 8,000 MT of New cuttings and 2,500 MT of cutted rails scrap at an average price of USD 320/MT, CFR Turkey.
After normalization, the assessment of US origin HMS 1&2 (80:20) stands at USD 313-315/MT, CFR Turkey, rising USD 22-25/MT from last week while Europe origin HMS assessed at around USD 309-310/MT, CFR, maintaining the premium of US material over Northern European scrap at around USD 4-5/MT.
South Korean Hyundai Steel cuts bid for Japanese scrap; books Russian cargo – South Korean Hyundai Steel observed 6th successive price cut for Japanese scrap lowering bids by another JPY 500/MT (USD 5) on 23rd May’19. H2 scrap prices stand at JPY 30,000/MT (USD 272), FoB Japan as against JPY 30,500/MT, FoB presented last week. On the other hand, the company booked another Russian bulk cargo of 27,000 MT (A3 grade) at USD 296/MT, CFR South Korea, slightly down by USD 4/MT against the last contract. Hyundai has booked total 52,000 MT Russian ferrous scrap this month.
Japan’s Tokyo steel keeps scrap prices unchanged – Japanese finished steel demand has turned low amid limited construction activities with most of the Olympics projects nearing their completion. Tokyo steel has held scrap purchase prices unchanged since 9th May and new scrap purchase price revision is awaited. while H2 prices remain almost 2 years low in the range JPY 29,000-30,000/MT in the local market.
South East Asia scrap importers remain cautious; limited trades reported – US origin imported HMS (80:20) prices remained flat around USD 280/MT, CFR Taiwan while in 20ft containers at USD 305-310/MT, CFR Jakarta. US origin HMS 1&2 in bulk was being offered around USD 320/MT, CFR Vietnam. Most of the importers remained cautious on excessive anticipation regarding Turkey-US trades in the global market.
Indian imported scrap trades to pick up shortly – Indian imported ferrous scrap market witnessed a considerable price hike this week following a sharp rise in the global market, however, significant trade activities are yet to pick up. Following the positivity on the Indian election outcome, the market is expecting an improvement in the demand amid strengthening of sentiments in coming days.
SteelMint’s assessment for containerized Shredded from Europe, UK and US stand in the range USD 333-335/MT, CFR Nhava Sheva, rising by around USD 10/MT against last week. Deals were reported towards the closing of the week in this range with buying interest at around USD 330-335/MT, CFR. Few leading suppliers are offering majorly in the range of USD 335-340/MT, CFR.
Offers for HMS 1&2 from UK and Europe reported in the range USD 310-320/MT, CFR while that of Dubai origin remained in the range of USD 325-330/MT, CFR amid limited supply during Ramadan. South African HMS 1&2 offers stand in the range of USD 330-335/MT, CFR and West African origin containerized HMS were reported in the range of USD 310-315/MT, CFR. Domestic HMS 1&2 remains stable in the range of 24,800–25,000/MT (USD 357-360) ex Mumbai.
Pakistan steel prices jump up on currency depreciation, buying activity limited – Pakistan’s currency depreciation against USD significantly impacted the local steel market with domestic steel prices increasing by PKR 3000-4000/MT (USD 20-26). Few steel mills have shown buying interest for imported scrap on limited inventory available. However, most buyers remained cautious for large volume procurement, with demand expected to increase further after Eid holidays.
SteelMint’s assessment for containerized Shredded scrap has recovered to USD 330-335/MT, CFR Qasim at closing of the week rising USD 7-10/MT against the last week, while in the beginning of the week, few trades were reported at USD 327-328/MT, CFR. HMS from Dubai and South Africa were reported in the range of USD 330-333/MT and 328-330/MT, CFR respectively.
Local scrap equivalent to Shredded stands at PKR 63,000-63,500/MT (USD 416-419) and Bala billet at PKR 78,000-78,500/MT (USD 515-518), ex-works inclusive of taxes. Rebar is being offered in Northern and Southern markets at PKR 100,000-101,000/MT and PKR 102,000-103,000/MT, ex-works respectively.
Bangladesh observes limited deals for imported scrap at increased prices – Bangladesh scrap buying activity has remained slow amid Ramadan season, however prices are still expected to follow an upward trend with improved buying interest in subcontinental markets in coming days. Assessment for containerized Shredded from Europe & North America stands in the range of USD 340-345/MT, CFR Chittagong, rising by USD 5-10/MT from last week. South American HMS 1 offers remain around USD 330-335/MT, while offers for P&S scrap in containers have dropped in the range of USD 340-345/MT, CFR amid limited activity.
Local scrap continued downward trend with shipyard scrap reported at BDT 33,500-34,000/MT (USD 398-404), while local melting scrap prices assessed in the range of BDT 32,000/MT (USD 380) ex-works inclusive of taxes.
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