Global scrap markets remain abuzz with widening price gap between high grade and low-grade scrap with increasing purchases of high-grade scrap in both major importing markets Turkey and South Korea. Turkey based importers actively booked cargoes from USA. while South Korea’s Hyundai Steel kept bids unchanged for high-grade Japanese scrap. Tokyo Steel’s another price hike for domestic scrap delivered to its Utsunomiya works supported Japanese domestic scrap prices. Asian markets witnessed improving buying interest with expectations for a pickup in the activities post-Ramadan. Taiwanese scrap prices softened further on weak demand in spot market. Chinese govt. cracked down smuggling of ferrous scrap worth USD 750 million being exported to South East Asian countries illegally without paying 40% export duty.
Imported scrap prices in Turkey rebound in recent deals – Turkey based importers booked several cargoes this week following which prices moved up by USD 8-10/MT on W-o-W. Latest price assessment for US origin HMS (80:20) moved up to USD 345-346/MT, CFR levels. It is expected that Turkish steel mills would start finished steel exports into US market again, as USA imposed similar tariffs on its earlier exempted allies like Mexico, Canada and EU from 1st June.
Imported scrap demand picked in recent trades from USA up as importers have started bookings for July shipments. Price gap between HMS 1&2 and Shredded was widened upto USD 13-15/MT on strong demand for high-grade scrap in USA deals concluded in mid-week.
In recent trade deal, a steel mill in Marmara region booked a Baltic Sea cargo, comprising 28,000 MT HMS 1&2 (80:20) at USD 344/MT and 5,000 MT of Bonus at USD 359/MT, CFR. This cargo is due for July second half shipment. In another deal, a steel mill in Northern Turkey booked a US cargo comprising 34,000 MT HMS 1&2 (80:20) at USD 347/MT and 8,000 MT Shredded at USD 355/MT, CFR.
South Korean Hyundai Steel keeps bid unchanged for high-grade Japanese scrap – Hyundai Steel kept the bids for high-grade Japanese scrap stable for this week as against last week while steelmaker abandoned the bids for the lower grade like H2 and H ½ owing to considerable inventories and ample contracts already in hand. Latest bids for medium grade scrap like HS and Shredded reported at JPY 38,000/MT (USD 348) and for high-grade scrap Shindachi Daichibara (SB) at JPY 41,000/MT (USD 375) on FoB Japan.
Two large bulk scrap vessels of total 80,000 MT scrap unloaded in the last couple of days at Dangjin and Incheon factories recovered inventories with Hyundai Steel at considerable levels this week. Steelmaker transformed scrap purchases from Russia into long-term contracts earlier last week amid high Japanese scrap prices and more competitive Russian scrap offers.
Japanese domestic scrap prices remain strong – Tokyo Steel announced another price hike w.e.f. 07th June by JPY 500/MT (USD 5) for domestic scrap at Utsunomiya work in Kanto region while prices remain unchanged at other four works in Japan. Now H2 scrap fetches at JPY 37,000/MT (USD 338) for Utsunomiya and JPY 35,500/MT at Tahara works.
The price gap between Kanto region’s Utsunomiya plant and Western Okayama plant widened to JPY 5500/MT (USD 50) for the same grade H2 in Japan. Market awaits for Kanto Tetsugen tender which is scheduled to be conducted on 13th for this month. Supply and demand gap is likely to get tightened further on export shipments in Kanto Tender next week. Declining demand from major importing countries has brought Japanese scrap export prices for H2 slightly under pressure and assessed at JPY 35,500-36,500/MT, FoB Japan.
Indian scrap importers remain silent, prices stable – Indian scrap importers continued to remain less working this week. Price assessment stood almost stable and very limited trades are being reported in the market. Most of the steelmakers remain preferring cheaper and easily available domestic scrap and sponge iron. Steelmakers are likely to resume bookings actively towards the end of Ramadan over lowering inventories for June-July and less bookings done during the last one months’ time.
Price assessment in containers for Shredded from UK and USA stood stable at USD 380-385/MT while South Africa and Dubai origin HMS 1&2 scrap assessed in the range of USD 370-375/MT on the CFR Nhava Sheva basis. West African and European HMS assessment stood in the range of USD 345-355/MT, CFR depending on the quality of scrap in containers.
Amid decent availability and falling billet prices, domestic scrap prices in India observed downtrend in almost all major regions. HMS (80:20) prices in Mumbai assessed at INR 26,500-26,700/MT (down INR 900 W-o-W), in Chennai INR 26,300-26,500/MT (down INR 100 W-o-W) these are basic prices, GST @ 18% extra.
Pakistan scrap prices rebound towards week close – Slowly recovering local steel market supported Pakistan scrap importers to book few limited quantity deals for Shredded 211 from UK/Europe at around USD 370/MT, CFR down by USD 5/MT in the beginning of the week. However, price assessment rebound at earlier levels towards week close. Although not many deals reported as suppliers remain hesitant to offer considerable volumes at these levels.
Latest price assessment for Shredded scrap from UK/Europe rebound at USD 377-382/MT, CFR Port Qasim. While HMS 1&2 was being offered at around USD 370/MT, CFR Qasim from UAE and South Africa. Billets and Rebar prices remain stable in the local market in Pakistan. Domestic ship cutting scrap prices moved up at PKR 54,000-55,000/MT including taxes ex-work Punjab.
Imported scrap prices fall marginally in recent thin trades in Bangladesh – Scrap importers turned positive over pick up in the finish steel demand at stable prices in the domestic market. In recent trade deals, around 4000 MT UK origin containerized Shredded 211 scrap sold at USD 388-390/MT, CFR and Offers for Shredded are mostly in the range of USD 385-390/MT, CFR levels.
Price assessment for West Africa, Chile and European containerized HMS scrap remained at USD 360-365/MT, CFR Chittagong depending on the quality of scrap and HMS 1&2 from Brazil at around USD 370/MT, CFR and P&S and HMS 1 assessed at around USD 380-389/MT, CFR from Brazil and UAE.
Local melting scrap prices assessed at BDT 36,800-37,300/MT, including 15% taxes. Ship cutting prices assessed at USD 430/LDT for general dry bulk cargo, USD 435/LDT for tanker cargo and USD 450/LDT for containers respectively on CNF Bangladesh basis.
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