Global Ferrous Scrap Market Overview: Week-4, 2018

This week global ferrous scrap prices showed slight downward movement almost in all major imported scrap markets. South Korean leading EAF steelmaker Hyundai steel lowered Japanese scrap purchase bid by USD 9/MT. Also towards second half of this week, Turkish imported scrap prices fell sharply by around USD 9/MT amid recent trades reported on W-o-W basis. This has impacted further corrections in imported scrap prices in the other major Asian scrap import markets. India, Pakistan, and Taiwan witnessed improved thin trades at reduced prices while importers from Bangladesh remained less active than other competitive markets seeking further price correction.

Turkey imported scrap prices moved down sharply in recent trades – Imported scrap market witnessed several trades at reduced prices in second half of this week in Turkey. The price assessment for US origin HMS 1&2 (80:20) fell to USD 354/MT, CFR Turkey. Importers continued booking for March shipments at reduced prices trying to put suppliers under pressure. In recent trade deal, A Marmara region based buyer booked a Baltic cargo comprising 9,000 MT HMS (80:20) at USD 354/MT, 16,000 MT Shredded at USD 359/MT and 6,000 MT Bonus scrap at USD 364/MT, CFR Turkey respectively.

Hyundai Steel cuts Japanese scrap purchase prices by USD 9/MT- South Korean leading EAF Hyundai Steel cut Japanese imported scrap bids by JPY 1000/MT believing the prices would have hit the peak and not sustain for long. Its latest bid put for H2 grade scrap was at JPY 36,500/MT (USD 330), FoB Japan against its last bid reported on 15th Jan’18 which was at JPY 37,500/MT (USD 339), FoB Japan. Hyundai steel purchases monthly 200,000 to 250,000 MT scrap. Many of the South Korean steel mills started reducing domestic scrap prices amid enough inventories have stored now with them.

Several thin trades reported in Indian imported scrap market – Indian scrap importers turned active as soon as offers showed slight downward correction by around USD 3-5/MT on W-o-W basis. Shredded scrap from USA booked in containers at USD 370-375/MT, CFR while HMS 1&2 (80:20) in containers offered at USD 340-345/MT, CFR from USA and West Africa. Few participants were looking for further correction in current prevailing bulk offers for Shredded scrap which were around USD 395/MT, CFR Nhava Sheva.

Amid tightened supply domestic scrap price assessment hiked sharply by INR 800-1000/MT on W-o-W. Offers for HMS 1&2 (80:20) in Mumbai are assessed at INR 24,600/MT and in Chennai around INR 25,000/MT (Basic prices, GST@18% extra). 28,350 MT Bulk Scrap Import Vessel Reported at Kandla Port. The vessel was booked around USD 360/MT, CFR and is expected to reach port on 1st Feb’18

Pakistan imported scrap prices fell in recent trades – Imported scrap prices in Pakistan moved down slightly following Turkish price drop. In a recent deal concluded in containers, around 1000 MT Shredded scrap sold from USA at USD 365/MT, CFR Qasim. Few more deals for Shredded scrap were also heard to have concluded in the range of USD 365-367/MT, CFR Pakistan. However, softening in local billet prices and strong Indian demand resulted in Pakistan buying interest to remain lower by USD 5-7/MT than current offers. Thus buyers remain little resistant expecting for further fall in the prices.

Bangladesh steelmakers preferred ship breaking scrap – Bangladesh scrap importers remained seeking for further fall in imported scrap offers and remained away from booking in this week again. Imported Shredded 211 offers from Europe were heard around USD 380-385/MT, CFR. And few offers for HMS from West Africa and Brazil were heard at around USD 360-370/MT, CFR levels. Market participants highlighted reluctance towards imported scrap amid comparative lower ship breaking prices. Which were assessed around USD 410/LDT for general dry bulk cargo, USD 430/LDT for tanker cargo and USD 440/LDT for containers respectively on CNF Bangladesh basis.

Global scrap reference prices as on 27th Jan’18 –

Source: SteelMint Research