The Imported ferrous scrap market remained dull this week witnessing a slight fall in the prices with rare trade activities. Buyers in Turkey, India and Pakistan turned quite amid holidays. However, scrap purchase prices in Japan and South Korea remained lifted this week.
Turkey remained out of market over holidays – Turkish market remained almost closed for this week owing to the holidays for festival ‘Eid-al-Adha’ and ‘National victory day’ amid which no trade activity took place by Turkish steel makers, imported scrap prices also stayed majorly stable. Assessment for US origin HMS is around USD 355/MT, CNF Turkey.
South Korea’s Hyundai Steel raised scrap purchase price for 3rd time in Aug’ 17 – South Korea’s leading steel mill – Hyundai Steel announced another price hike up to Yen 1,000/MT for scrap purchase making it the 3rd increase in this month. Hyundai Steel bid prices for H2 grade of scrap now stood at USD 309 /MT (Yen 33,500/MT) FoB, Japan.
Indian scrap offers fall by USD 5 /MT over weak demand – Seasonal slowdown in activities due to heavy rains dragged down the steel consumption in the construction sector. Over the weak demand imported scrap offers have come down this week by USD 5-10/MT.
Price assessment done for HMS 1&2 is at USD 315/MT, CNF Nhava Sheva and that for Shredded is around USD 340-345/MT, CNF Nhava Sheva. Though buying interest remained low, some buyers started inquiries with negotiating the prices even below the present level. Domestic scrap being comparatively cheaper continued to remain preferable over domestic scrap. Domestic HMS (80:20) prices were assessed at INR 21,300/MT (ex-Mumbai) and INR 21,000/MT (ex-Chennai), basic prices and GST@18% extra.
Pakistan based scrap importers remained silent amid Eid holidays – Imported scrap offers to Pakistan came down by USD 5-10/MT W-o-W. However having enough inventories available in hand resisted the buyers from booking new vessels. Another reason that lessened trade activities was prevailing Eid holidays. Price assessment for HMS 1& 2 from UK stood around USD 320-325/MT, CNF Port Qasim and that for Shredded scrap is around USD 340-350/MT, CNF Port Qasim. Bulk scrap imports to Pakistan were recorded carrying a total tonnage of 109,680 MT in Aug’17 against 106,992 MT in July.
Bulk scrap imports to Bangladesh increased in Aug’17 – Bulk scrap imports to Bangladesh were recorded at 41,600 MT in Aug’17 against 21,050 MT in Jul’17. Offers accessed for HMS (80:20) at USD 340/MT, CFR Chittagong.
Everyone is waiting for Turkey to comeback from holiday which will decide the forthcoming direction of imported global scrap market in next week.
Global ferrous scrap prices – Week 36
| Particulars | Current Prices in USD/MT | W-o-W |
| HMS (80:20)from US, CNF Turkey | 355 | -2 |
| HMS 1 & 2 from Dubai, CFR India | 315 | -5 |
| HMS (80:20) from UK, CFR India | 320 | -5 |
| Shredded from Europe , CFR India | 335 | -10 |
| Shredded from USA , CFR India | 340 | -10 |
| Shredded, CNF Pakistan | 345 | -8 |
| HMS ,CNF Pakistan | 320 | – 10 |
| HMS (80:20) from US, CNF Taiwan | 298 | 0 |
| HMS (80:20), FoB Europe | 329 | -2 |
Source: SteelMint Research
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