Turkey- world’s largest scrap importer being hit by sharp depreciation with currency hitting record low following US doubling steel import tariffs on Turkey, the global scrap dynamics are likely to get impacted significantly in upcoming days. South Korean Hyundai steel booked US bulk cargo skipping bidding for Japanese scrap again this week. With high bids fetched in monthly Kanto Tender and Tokyo steel’s recent price hike Japanese scrap prices have continued upward movements. Chinese scrap prices move up amid rising scrap demand on stricter environmental regulations. India, Pakistan and Bangladesh market witnessed limited quantity deals at almost stable prices. While following global trends prices in Taiwan and Vietnam have come down this week.
Turkish scrap prices fell sharply amid huge currency depreciation – According to SteelMint’s assessment, recent deals have pulled the price assessment down for USA origin HMS (80:20) at around USD 322/MT, CFR Turkey, which has come down by USD 7-8/MT as against the report of USD 330/MT, CFR towards the closing of the last week. The premium for HMS 1&2 (80:20) scrap for USA over European origin stands at USD 4-6/MT. Lira hit all time low at 6.4 today against USD.
In a recent deal concluded, a steel mill in Marmara region booked September shipment Baltic cargo, comprising HMS 1&2 (80:20) at USD 318/MT, Bonus at USD 328/MT and Railway scrap at USD 333/MT, CFR Turkey.
South Korea’s Hyundai Steel skips Japanese scrap bids, books bulk cargo – South Korea’s leading EAF steelmaker – Hyundai Steel has suspended its bids for all grade of Japanese scrap for almost four successive weeks amid sufficient inventories and ample numbers of contracts in hand. Hyundai Steel seems not interested to accept the price expectations from Japanese scrap suppliers. The steelmaker has recently concluded a contract for USA bulk vessel comprising 45,000 MT of HMS 1 scrap at USD 349/MT, CFR South Korea for October shipment. It is mostly because of expensive Japanese scrap offers as compared to USA scrap prices.
Japan’s monthly Kanto scrap tender bids edge up by USD 5 – ‘Kanto Tetsugen’- monthly scrap export tender for Aug’18 fetched average bids at JPY 34,860/MT (USD 315), FAS, up by JPY 530/MT (USD 5) M-o-M as against the average bids fetched at JPY 34,330/MT (USD 310), FAS in Jul’18. In Aug’18 auction, total 15,000 MT of Japanese H2 scrap was awarded winning bid placed. Amid strict quality control, tightened supply in summer and restocking ahead of Obon holidays Japanese scrap prices have turned strong.
Japan’s Tokyo Steel hikes scrap purchase prices by upto USD 9 – Leading EAF steel mini-mill – Tokyo Steel has raised prices by JPY 500/MT (USD 5) at Utsunomiya and Tahara plant while by JPY 1000/MT (USD 9) at three western Japan plants effective from 10th Aug’18. It fetches H2 at JPY 36,000/MT (USD 324) for its Kanto region based works i.e. Utsunomiya and at JPY 35,500/MT for largest works in central Japan-Tahara.
Major EAF steelmakers in Japan likely to operate at extended hours on decline in electricity rates and thus have increased scrap purchases now in order to increase their output ahead of holidays. But exports remain sluggish amid heavy summer season and price mismatch between sellers expectation and buyers bidding.
China’s Shagang Steel raises scrap purchase price by USD 22 – Shagang Jiangsu Steel group in eastern China has raised its domestic scrap purchase prices this week further by Chinese Yuan (RMB) 150/MT. After witnessing price hike of RMB 100/MT last week, the company has raised its prices further amid tightening supply-demand for finish steel and stricter environmental regulations, paying RMB 2,590/MT inclusive of 17% VAT for HMS (6-10 mm in thickness) delivered to its headquarter works situated in Zhangjiagang province in China. Many of the leading scrap consuming steelmakers have raised their purchase prices now by RMB 100-200/MT W-o-W in eastern China.
Indian importers book limited trades at stable prices – Indian scrap importers resumed limited trades in the mid of week at stable prices however, with recent downward corrections in international markets, importers turn silent again for more clarity. Cheaper availability of domestic scrap in the most of the regions of the country keep steelmakers preferring local scrap over imported.
Price assessment from UK and Europe containerized Shredded stands at USD 357-360/MT, CFR Nhava Sheva. Few deals for Shredded confirmed at around USD 360-362/MT, CFR from a leading supplier. HMS 1&2 offers have slightly inch up following improved demand. Offers from UAE for HMS 1&2 (80:20) heard at USD 335-340/MT and for HMS 1 at around USD 340-345/MT, CFR. Minor trades for West African HMS heard traded in the range of USD 315-320/MT, CFR in containers depending on quality of scrap and loading ports.
Currently, HMS (80:20) basic prices assessed at INR 24,900-25,100/MT (USD 361-364), down INR 200 W-o-W in Mumbai, while prices assessed at INR 27,200/MT, up 1200/MT on W-o-W ex-Raipur basis, GST @ 18% extra.
Taiwan imported scrap prices edge down further – Price assessment for US origin HMS (80:20) stands at USD 323/MT, CFR in recent deal concluded in containers. However, demand remained sluggish with considerable inventories in hand with steelmakers.
Vietnamese importers shift to other suppliers over high Japanese prices – Vietnamese scrap buyers prefer to buy USA and Europe scrap at the moment to fetch better prices as Japanese export offers are comparatively high to afford. Offers for Shredded assessed at around USD 355-360/MT, CFR and HMS 1&2 assessed at USD 340-345/MT, CFR Vietnam. Bulk scrap offers from Hong Kong heard at USD 350-353/MT and Japanese H2 offers at around USD 350-355/MT, CFR Vietnam.
Bangladesh imported scrap prices firm amid rising demand – In recent trade deals, Shredded 211 scrap from the UK sold in containers in the range of USD 368-371/MT, CFR Chittagong. P&S scrap offers assessed USD 370-375/MT, CFR Chittagong. HMS 1 from South Africa sold at USD 350-355/MT, CFR levels and HMS 1&2 (80:20) offers remain in the range of USD 340-345/MT depending on various origins. Local market remains weak over ongoing rains and student protests moreover it may observe further slowdown on account of upcoming local holidays in the country. Local scrap prices in Bangladesh remain stable this week and gauged at BDT 35,000-35,500/MT, ex-works.
Pakistan scrap importers turn silent on sharp fall in local steel prices – Very limited quantity deals for Shredded scrap have concluded at almost stable levels of USD 355-358/MT, CFR Qasim from recyclers in UK/USA. HMS 1 from UAE assessed at around USD 343-347/MT, CFR. HMS 1&2 from South Africa traded at around USD 345-350MT, CFR Qasim. Sellers remain holding to offer at low levels. As an impact of weak demand, liquidity issues and low cash circulation local billet, rebar and scrap prices in Pakistan have come down by PKR 3000-5000/MT (USD 24-41) against last weeks’ report.
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