Global Ferrous Scrap Market Overview-Week 47

This week ferrous scrap importers in Turkey booked several cargoes at increased offers. Tokyo Steel raised scrap purchase bids for all works by USD 9/MT on 14th Nov and again by USD 5/MT today at its Western works in Japan. Imported ferrous scrap offers to India and Bangladesh remained almost stable while offers dropped slightly in Pakistan on W-o-W basis. Indian buyers turned optimistic and are looking for fresh booking amid falling stocks.

Turkey imported scrap offers rise sharply on the recent trades – This week Turkish market witnessed several bookings with sharp rebounce in offer levels by USD 11-13/MT on W-o-W basis. Assessment for US origin HMS (80:20) now stood at USD 314/MT, CFR Turkey. In recent trade, US based supplier sold Shredded scrap at USD 318/MT and P&S scrap at USD 323/MT to Turkey’s ICDAS. In a latest trade deal reported, AIM Steel sold 50,000 MT cargo containing 10,000 MT HMS (90:10), 35,000 MT Shredded and 5,000 MT P&S to Bastug – a leading steel producer in Turkey at an average price of USD 320/MT, CFR Turkey.

Tokyo Steel raise H2 scrap purchase prices twice in weeks’ time – Japan’s leading steel producer Tokyo Steel has increased its scrap buying prices twice in a week’s time firstly on 14th Nov by JPY 1000 (USD 9) at all five works and on 18th Nov by JPY 500/MT (USD 5) at three of its works in Western Japan. Now H2 scrap fetches JPY 35,000/MT (USD 312) at largest work in central Japan-Tahara. While the same grade fetches JPY 34,000/MT (USD 303) at Utsunomiya, Okayama and Kyushu works and JPY 33,500/MT at Takamatsu Steel Center. Thus in Nov’17, the steelmaker has witnessed five consecutive price hikes so far. Offers now assessed for H2 at JPY 32,500-33,000/MT, FOB Japan and for New Cutting (Press) at JPY 35,000-35,500/MT, FOB Japan.

Indian imported scrap offers firm, buying likely to resume shortly- Imported scrap offers to India remained firm this week amid strong market sentiments and falling stocks. It is expected that Indian steel mills will soon resume bookings of imported scrap. Offers for Shredded scrap for both UK and Europe origins in containers assessed around USD 332-335/MT, CFR Nhava Sheva and offers assessed for HMS 1&2 (80:20) at USD 305-310/MT, CFR Nhava Sheva for Dubai origin. Currently, HMS (80:20) in Mumbai assessed around INR 21,400-21,500/MT and that in Chennai is around INR 21,000-21,100/MT (Basic prices, GST@18% extra).

Pakistan steel mills remain active for imported scrap; Offers fall marginally – Imported scrap offers in Pakistan slightly fall by USD 5/MT on W-o-W basis. This price drop seems limited for time being and further price fall less expected over lesser material availability in winters. Current price assessment for HMS 1&2 from Dubai in containers is around USD 305-310/MT, CFR Qasim while offers for containerized Shredded scrap from UK and Europe origins at USD 328-330/MT, CFR Qasim. Recently in Punjab region, many furnaces have been forced to shut down by environmental control authorities but it would hardly affect scrap offers in Pakistan.

Scrap importers in Bangladesh remain less active, ship breaking scrap remains a preference – Price assessment for Shredded scrap in containers remains stable this week at USD 345/MT, CFR Chittagong. Offers for Dubai HMS stood at USD 330/MT, CFR While HMS 1 from other major origins assessed at USD 330-335/MT, CFR Chittagong. Prices for ship breaking have shown slight upward movement in Bangladesh this week by USD 5 on W-o-W basis and assessed at USD 375/LDT for general cargo and USD 395/LDT, CFR for tanker cargoes. Bangladesh scrap importers are still in concern of prolonged port congestion resulting in the increased waiting time for scrap vessels and hiked freight charges. Few other factors like volatile currency movement and getting very few offers in workable levels caused importers to go for cheaper domestic ship breaking scrap.

Global imported scrap reference prices as on 18 Nov’17 –

Source: SteelMint Research