Amid economic slowdown, Turkey witnessed fewer trades as prices remain hovering this week mostly for June deliveries. Hyundai Steel mill resumed bids for Japanese scrap with increased interest for higher grades. Japanese domestic market observed firm sentiments with fifth price hike announced by Tokyo Steel mill for domestic scrap delivered to its Utsunomiya work in May’18. Asian markets witnessed improving buying interest for imported scrap with further downward price corrections. Taiwanese importers kept eyeing for price corrections and Chinese domestic scrap prices plunged on weak sentiments in finish steel market again this week.
Japanese domestic scrap prices remain strong – Japanese scrap market observed improved scrap buying this week. H2 scrap export prices assessed in the range of JPY 35,000-36,000/MT (USD 320-329) FoB for Kanto region.
Tokyo Steel announced the fifth hike in purchase prices w.e.f. 30th in May ’18. Prices for all grades of raised JPY 500/MT (USD 5) at Utsunomiya work in Kanto region and for two high grades of scrap at Tahara work while the prices remain unchanged at other four works in Japan. Now H2 scrap fetches at JPY 36,500/MT (USD 334) for Utsunomiya. Prices at Tahara have raised by JPY 1000/MT to JPY 38,500/MT for grade Electricity-A and by JPY 500/MT to JPY 36,700/MT for grade Special-A. Since five price hikes announced, Utsunomiya work’s H2 prices have increased by JPY 3500/MT now.
South Korean Hyundai Steel resumes bid for Japanese scrap – Hyundai Steel presented bids for Japanese scrap imports this week after almost 3 week’s period. Bids for high-grade Japanese scrap have increased by JPY 2000/MT (USD 18) and JPY 1000/MT (USD 9) for H2 following the uptrend in Japan’s domestic market. Increasing spread between bids for high grade and H2 scrap indicate steel maker’s increased inclination towards high-grade scrap. Bids for H2 remained at JPY 34,000/MT, FoB Japan for this week as against last bids placed on 9th May’18 at JPY 33,000/MT, FoB Japan. Amid aggressive plans to cut rebar production and ample scrap inventories, the company had abandoned bids for Japanese scrap for previous 2-3 weeks.
China’s Shagang Steel slashed prices twice by USD 6/MT this week – Amid lack of upward momentum in demand for finish steel and ample scrap inventories in hand Shagang witnessed two successive price cuts. Shagang is now paying RMB 2,260/MT (USD 353) inclusive of 17% VAT for HMS (6-10 mm in thickness) delivered to its headquarter works situated in Zhangjiagang province. While Shagang is likely to observe maintenance activities at its works indicating production cut for finish steel Following Shagang’s lead, scrap prices in other provinces like Anhui, Shandong and Fujian moved down by CNY 70-100/MT (USD 11-16) in China.
Imported scrap prices in Turkey inch down in recent deals – Turkish currency (Lira) appreciated this week slightly. However economic uncertainty and weak finish steel demand damped market sentiments. Few deals concluded for June deliveries this week. Few steelmakers remain seeking for further price corrections, however, suppliers remain hesitant to offer at corrected levels.
Price assessment for US origin HMS (80:20) dropped to USD 332-334/MT, CFR Turkey in mid of the week while rebounded back to USD 337-339/MT towards week close. In the recent deal concluded, ICDAS booked a European cargo comprising 26,500 MT HMS 1&2 (80:20), 10,000 MT Shredded and 10,000 MT Bonus at an average price of USD 336/MT, CFR Turkey.
Indian scrap importers to resume trades shortly – Buying interest for containerized imported scrap likely to move up again within next 5-7 days in India. The market remained weak on concerns over arriving monsoons expecting for further price corrections. However, prices remained almost stable throughout the week at downward corrected levels amid fluctuating global scrap prices. Steelmakers are likely to resume bookings shortly over lowering inventories and less bookings done during the last couple of weeks.
Price assessment in containers for Shredded from UK/Europe stood stable at USD 375-378/MT as few trades concluded at these levels while offers from USA assessed in the range of USD 380-385/MT, while South Africa and Dubai origin HMS 1&2 scrap assessed in the range of USD 365-373/MT on the CFR Nhava Sheva basis.
Domestic scrap prices witnessed an increase in most of the regions this week. HMS (80:20) prices assessed today at INR 27,500/MT (stable W-o-W) in Mumbai and INR 26,700/MT (up INR 200 W-o-W) in Chennai.
Pakistan ferrous scrap importers to turn active post-Ramadan – Although the effect of electricity supply cuts continued, scrap importers raised inquiries this week. Amid falling global prices and supportive local markets importers likely to start restocking scrap post-Ramadan activities.
The price assessment for Shredded scrap from UK/Europe stood stable at USD 375-380/MT, CFR Port Qasim. While HMS 1&2 was being offered at around USD 365-370/MT, CFR Qasim from UAE and South Africa. Billets and Rebar prices rebounded this week in the local market in Pakistan. Domestic ship cutting scrap prices rebounded back after sharp fall to PKR 53,000-54,000/MT including taxes ex-work Punjab.
Imported scrap prices moved down in recent thin trades in Bangladesh – This week sentiments turned positive for imported scrap in Bangladesh. Importers are likely to book more scrap actively in the upcoming days over the anticipation for pick up in the finish steel demand on approaching completion of the Ramadan festive season.
In recent trade deals, 2000-4000 MT UK origin containerized Shredded 211 scrap sold at USD 396-397/MT, CFR and Offers for Shredded are mostly in the range of USD 395-398/MT, CFR levels. While HMS 1&2 is being offered at around USD 373-378/MT, CFR from Brazil. These deals have pulled the price assessment for down by around USD 5-10/MT on W-o-W basis. Local melting scrap prices fell by BDT 500-700/MT and assessed at BDT 36,500-37,000/MT, including 15% taxes. Ship cutting prices assessed at USD 410/LDT for general dry bulk cargo, USD 420/LDT for tanker cargo and USD 430/LDT for containers respectively on CNF Bangladesh basis.
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