Global scrap prices moved down further this week with fall in prices in recent deals concluded in Turkey and Taiwan. Asian countries like India, Pakistan and Bangladesh remained buying limited quantities of scrap despite of fall in offers owing to less supportive domestic market fundamentals. South Korean steelmaker Hyundai Steel abandoned bids for Japanese scrap. While Tokyo Steel in Japan hiked purchase prices at its three western Japan plants further amid improving prices over logistic issues and heavy rains in the country however it might not impact much as prices were previously lower than that of other EAF makers. Chinese Shagang Steel kept scrap purchase prices unchanged.
Turkish steel mills book several deals for August shipments – Turkey witnessed few deals concluded for urgent needs and few for August shipment bookings at hovering prices this week. The demand in its finish steel market remained dull however it is likely to improve with European commission trade tariffs.
According to SteelMint’s price assessment, latest deals have pulled down USA origin HMS (80:20) scrap at around USD 340/MT, CFR Turkey. Which had climbed up in the mid of week to USD 345/MT levels.
In a recent deals heard, USA supplier sold 45,000 MT cargo to a steel producer in Turkey comprising 25,000 MT HMS 1&2 (80:20) at USD 340/MT, 15,000 MT Shredded at USD 350/MT and 5,000 MT of Bonus at USD 355/MT,CFR Turkey. Another steel mill booked a European cargo, comprising 30,000 MT of HMS 1&2 (80:20) at USD 328/MT, CFR.
Hyundai Steel abandons bid for Japanese scrap – South Korea’s leading EAF steelmaker – Hyundai Steel has suspended bids for all grades of Japanese scrap this week. Amid ample number of contracts available in hand and disparity between price expectations from Japanese scrap suppliers and bidding levels, the company has suspended bidding rather than buying excessively. Also, no inclination was shown for paying more than JPY 33,000/MT, FoB levels for H2.
Along with Hyundai steel South Korean another steel mill Dongkuk Steel heard to have stopped purchasing domestic scrap and they have extended purchases of local scrap for this week amid considerable inventories in hand.
Japan’s Tokyo Steel raises scrap purchase price upto USD 9/MT at western plants – Japan’s leading EAF mini-mill – Tokyo Steel has raised purchase prices for domestic scrap delivered to three of its plants located in South Western Japan. As per new circular effective from 19th July, Tokyo steel fetches H2 scrap at JPY 33,000/MT at Okayama (up JPY 500/MT) and at JYP 33,500/MT at Kyushu plants (up JPY 1000/MT) in Western Japan while for its Takamatsu Steel Center company keeps bid at JPY 32,500/MT (up JPY 500/MT). Prices remained stable at JPY 35,500/MT (USD 322) for its Kanto region based works i.e. Utsunomiya and at JPY 35,000/MT for largest works in central Japan-Tahara.
Japanese scrap market is turned strong in the western Japan and Kanto region due to heavy rains and logistic issues but a steep rise is hardly expected in the upcoming summer. Now average H2 scrap export offers from suppliers assessed in the range of JPY 34,500-35,500/MT, FoB for Kanto and Gulf regions in Japan.
Indian scrap importers turn quite on weak domestic steel prices – Sharp currency devaluation, successively falling domestic semi-finish steel prices, and cheaper availability of domestic scrap kept Indian imported scrap booking activities very limited again this week. A bulk scrap vessel named ‘Penelope L’ carrying 26,900 MT of scrap is reported at Kandla port from Australia.
Price assessment of Shredded from UK and USA stands at around USD 365-370/MT, CFR Nhava Sheva. While offers for HMS 1&2 (80:20) have come down by USD 5-8/MT on W-o-W basis. UAE origin offers assessed at USD 335-340/MT while HMS 1 assessed at around USD 340-345/MT, CFR. West African HMS assessed at USD 310-320/MT, CFR Nhava Sheva. Couple of limited quantity trade deals have confirmed however no buyer was much interested at these levels.
Domestic scrap prices have continued downtrend in India and thus remains a preference over imported for most of the steelmakers. Currently, HMS (80:20) basic prices assessed at INR 24,300-24,500/MT (stable W-o-W) in Mumbai, while INR 22,500-22,700/MT (down INR 900 W-o-W) in Chennai, GST @ 18% extra.
Taiwan imported scrap prices edge down – Imported scrap prices in Taiwan have come down in recent deals however buying interest weakened this week. Price assessment for US origin HMS (80:20) stood at USD 335/MT, CFR as against last weeks’ offers from US suppliers at around USD 340-345/MT, CFR.
Pakistan scrap importers worry over currency depreciation – After witnessing sharp currency depreciation Pakistan steel market has turned quite apprehensive for scrap imports. Sudden hike in local steel prices by upto PKR 4,000-6,000/MT lead to sharp slowdown in purchases for billets and rebar moreover successively falling global scrap prices have brought buyers under pressure. Amreli Steel increased offers for premium ‘Xtreme’ rebars to PKR 107,000-108,000/MT, ex- works. Offers for UK and USA Shredded heard in the range of USD 362-367/MT levels in Pakistan. While price assessment for HMS 1&2 (80:20) scrap from Dubai moved down at around USD 345/MT, CFR Qasim. Everyone is silent amid heavy monsoon, fall in construction activities and ahead of national elections and likely to resume activities in August actively.
Bangladesh observed limited trades for imported scrap at corrected prices – In recent trade deals, Shredded 211 scrap from USA and UK sold in the range of USD 383-388/MT, CFR Chittagong. HMS 1 from Brazil and Chile sold at around USD 372/MT and USD 360/MT, CFR respectively. While Europe HMS 1&2 (80:20) assessment stood at around USD 350/MT, CFR. West African HMS 1&2 (80:20) sold at USD 344/MT, CFR. SteelMint’s price assessment edged down by USD 3-5/MT on W-o-W basis. Local scrap prices in Bangladesh fell by BDT 500-700/MT and reported at around BDT 35,500-36,000/MT, ex-works. Ship breaking market witnessed dull sentiments with prices edge down by USD 5/LDT again this week but looking at price differentials for all sub-continental markets, it seems that majority of unsold units for ship cutting will head to Chittagong market.
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