Global ferrous scrap market observed downtrend in almost all major markets this week. Turkey observed further fall in prices over the week in recent deep-sea cargo bookings, while the downfall was also reflected in lowering of offers to South Asian markets, who remained slow in returning back from holidays. Japan’s Tokyo Steel lowered its scrap purchase prices by USD 5-9, while China’s Shagang Steel hiked domestic scrap purchase by USD 7 amid tight supply.
Turkey – Amid weak demand for Turkish finished steel, steelmakers remained under pressure, while few deep-sea cargo bookings of scrap were reported at lowered prices, pulling down the imported scrap prices further.
In recent deals confirmed, a Marmara based steel maker booked mixed cargo from leading USA supplier with 3,000 MT of HMS 1&2 (80:20) at USD 276.5/MT, 20,000 MT of Shredded at USD 281.5/MT and 22,000 MT of P&S scrap at USD 286.5/MT, CFR Turkey respectively. Assessment of US-origin HMS 1&2 (80:20) scrap stands at USD 276-277/MT, CFR Turkey down USD 8/MT from last week, while prices slided down USD 2-3/MT over the course of the week. European origin HMS 1&2 (80:20) is assessed at around USD 272-273/MT, CFR Turkey.
Japan – Japan’s mini-mill Tokyo Steel has lowered domestic scrap purchase bids again this week after a gap of 2 weeks, cutting price by JPY 1000/MT (USD 9) at Okayama plant and by JPY 500/MT (USD 5) at its Tahara, Takamatsu and Kyushu works while keeping the prices for Utsunomiya unchanged. It is now paying JPY 24,000/MT (USD 225), JPY 26,500/MT and JPY 25,500/MT (USD 240). For H2 scrap delivered to Okayama, Tahara and Utsunomiya plant respectively.
Recent currency appreciation in addition to low finished steel demand has resulted in the successive price cuts in 2 weeks. Japanese steel scrap suppliers come under pressure however uncertainty continues amid considerable demand in the local market.
South Korea – It was reported that Hyundai Steel this week put out bids for Japanese scrap at around JPY 27,000/MT, in the form of individual negotiations with Japanese suppliers (instead of open tender) after over a month’s gap, and made it clear that offers of JPY 28,000 and more request by Japanese scrap suppliers is difficult to meet.
Notably, as per reports, inventories of scrap have come down sharply in Hyundai Steel and other major South Korean steelmakers, which may be due to very low bookings of Japanese scrap since July’19. On the other hand, surprisingly domestic scrap prices in South Korea have increased and less likely to come down in coming days amid trade issues with Japan.
Taiwan – After keeping unchanged for 5 successive weeks, domestic scrap and rebar prices have moved down in Taiwan on persisting weak finish steel sales. Imported scrap offers stood in the range USD 270-275/MT, CFR Taiwan for US-origin HMS 1&2 80:20 marginally down by USD 5/MT against last week. The leading steelmaker Feng Hsin steel lowered its domestic scrap buying price by TWD 200/MT (USD 6) to TWD 8,800/MT (USD 281) for HMS 80:20 delivered to Taichung plant and Rebar prices stand at TWD 16,000/MT (USD 517).
China – Amid tightening ferrous scrap supply, Shagang Jiangsu Steel group announced price hike by RMB 50/MT after witnessing successive price cuts during earlier couple of weeks. It is paying RMB 2,700/MT (USD 381) inclusive of 13% VAT for HMS 3 (6-10 mm thickness) delivered to headquarter works situated in Zhangjiagang. The steelmaker has rolled over finish steel prices for late August deliveries, as it will continue to offer its HRB400 16-25mm Dia rebar priced at RMB 3,970/MT (USD 567/MT), while the mill’s price for HPB300 6-10mm wire rod stays at RMB 4,150/MT unchanged against last set.
South East Asia – Imported scrap offers to South East Asia come under pressure this week with lowering of futures in Chinese market. Imported busheling scrap from US and Barzil was being offered in the range USD 320-325/MT, CFR Jakarta & US origin P&S scrap at USD 315-320/MT, CFR. Vietnamese market observed flurry of European offers in absence of other markets. HMS 1&2 in bulk were reported at USD 310-315/MT, CFR Vietnam. While recent correction in domestic scrap prices in Japan likely to bring export prices down in the coming days.
India – A week of total silence was observed for imported scrap market to India, as domestic steel market continued downtrend keeping imported scrap non-feasible for most buyers, even with record low prices in the market currently.
Assessment for containerized Shredded from UK, Europe and USA moved down to USD 295-300/MT, CFR Nhava Sheva, further down by USD 5/MT against last week, with most offers in the market while few buyers made inquiries even at USD 290/MT, amid an absence of any major deals. Dubai origin HMS scrap was being offered in range of USD 270-280/MT, CFR as per quality while South African HMS was reported at around USD 280-285/MT, CFR. Suppliers from other origins mostly remained silent on little to nil interest from Indian buyers.
Pakistan – Imported scrap offers dropped further post resumption of activities post-Eidholidays on weak domestic demand and falling global prices. The market expects trade activities to pick up in the coming days.
Assessment for containerized Shredded 211 scrap from US, Europe and UK stands at USD 296-303/MT, CFR Qasim, down USD 5-7/MT against last week. Earlier in the week, few European sellers offered as low as USD 296-298/MT to check buyers interest, while prices remain at 2 year low levels.
HMS trades continued to be scarce on strict custom and FBR rules. Dubai origin HMS 1&2 and HMS 1 is assessed at around USD 285/MT and USD 290-295/MT, CFR respectively, amid very limited trades. European HMS suppliers mostly stayed away. Domestic steel prices remained stable on a weekly basis with the market is slowly returning back.
Bangladesh – Offers for imported scrap continued to slide down post-Eid holidays, mainly on global trend as decent bookings were reported in the week. 3 Bulk cargos were booked by a leading mill in Chittagong with a total volume of over 90,000 MT comprising of Shredded and HMS 1&2 (80:20) scrap, higher USD 10-15/MT than the current market price.
Assessment for containerized Shredded scrap from UK and North America stands in the range of USD 310-315/MT, CFR Chittagong down USD 5-10/MT from 2 weeks ago. HMS 1 offers from South American and Australian origins were reported at around USD 305/MT, CFR, while good quality South African HMS was reported at around USD 305-310/MT, CFR. Few offers for P&S scrap from South America stood at USD 320-325/MT, CFR respectively. Domestic steel prices dropped by around 7-8 % over the week on over production amid weak demand.
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