Global Ferrous Scrap Market Overview-Week 48

This week ferrous scrap importers in Turkey were slightly inactive as limited trades were reported while prices were almost firm in Turkey on W-o-W. On the other hand prices in all other major global scrap markets remained climbing every next day in this week. Hyundai Steel in South Korea lifted scrap buying bids by USD 27/MT recently. Tokyo Steel raised scrap purchase bids for all works further by USD 4/MT on 22th Nov and purchased around 9,000 MT H2 scrap from GMR South Korea for its Kyushu plant in Japan. Shagang Steel in China increased its scrap purchase prices sharply by USD 22/MT in this week. While imported ferrous scrap offers to India, Pakistan and Bangladesh quickly hiked around USD 10/MT on W-o-W basis

Turkey imported scrap offers remain stable amid limited trade deals in this week – This week Turkish market witnessed limited bookings despite offer levels remained almost similar on W-o-W basis. Assessment for US origin HMS (80:20) now stood at USD 315/MT, CFR Turkey. In a recent trade deal heard, a Turkey-based steel maker bought 30,000 MT HMS (80:20) Baltic Sea cargo at USD 314/MT and 5,000 MT Bonus at around USD 324/MT, CFR. After booking scrap aggressively in the last couple of week the further requirement of scrap for December month seems to be less. However, trade sources are of the view that scrap prices will remain on the higher side and are likely to increase further in the next month owing to arriving winters that may tighten material availability.

China’s Shagang Steel raised domestic scrap buying bids by USD 22/MT – The largest ferrous scrap consumer in China, Shagang Steel has hiked its scrap buying prices by CNY 150/MT (USD 22) recently in order to restock higher materials. Shagang is now paying CNY 2,130/MT (USD 321) for HMS (not less than 6mm in thickness) scrap. Earlier to this, the company was fetching scrap material at CNY 1980/MT (USD 299).These prices were noted as the highest since last three years. Rising prices in domestic market have made high-grade scrap exports from the country non-viable. Following this, few other major Chinese steel mills have raised scrap purchase price. Rizhao Steel has also raised scrap buying price by Yen 120/MT (USD 18).

Tokyo Steel raise H2 scrap purchase prices further by USD 4/MT at all works in Japan; Purchased 9,000 MT H2 from South Korea – Japan’s leading steel producer Tokyo Steel has increased its scrap buying prices on 22th Nov by JPY 500 (USD 4) at all five works. Now H2 scrap fetches JPY 35,500/MT (USD 318) at largest work in central Japan-Tahara. While the same grade fetches JPY 34,500/MT (USD 303) at Utsunomiya, Okayama and Kyushu works and JPY 34,000/MT at Takamatsu Steel Center. Thus in Nov’17, the steelmaker has witnessed sixth consecutive price hikes upto overall rise of USD 27/MT so far.Domestic sources reported that South Korea’s GMR Material has signed a supply contract of 9,000 MT H2 grade scrap from East Rail (Korea), which will be supplied to Tokyo steel’s Kyushu plant in Japan. GMR material had supplied about 3,000 MT to Tokyo steel in the month of June 2017.Thus this is second scrap purchase by Tokyo Steel from South Korea in this year.

Hyundai Steel raised bids for Japanese scrap by sharply USD 27/MT – South Korean leading steel maker – Hyundai Steel raised the bid prices for Japanese H2 scrap to Yen 33,500/MT (USD 300) FoB Japan, against last bid of Yen 30,500-31,000/MT (USD 272-276/MT) on 01 Nov’17. Presently, price for other grades of scrap – HS is accessed at Yen 36,500/MT and Sindachi Press at Yen 38,500/MT, FOB Japan respectively. Offers now assessed for H2 at JPY 33,800/MT (USD 298), FOB Japan and for New Cutting (Press) at JPY 36,300/MT (USD 320), FOB Japan. Most of the traders expect prices to remain lifted up as Japan’s domestic scrap demand remains strong amid ongoing peak construction season in Japan.

Indian imported scrap rise, buying likely to resume shortly – Imported scrap offers to India moved higher by USD 5/MT this week amid strong market sentiments and falling stocks. It is expected that Indian steel mills will soon resume bookings of imported scrap and demand also to rise sharply. Offers for Shredded scrap for both UK and Europe origins in containers assessed around USD 340/MT, CFR Nhava Sheva and offers assessed for HMS 1&2 (80:20) at USD 310/MT, CFR Nhava Sheva for Dubai origin. Offers for P&S are assessed at around USD 340/MT, CFR. Currently, HMS (80:20) in Mumbai assessed around INR 21,400/MT and that in Chennai is around INR 20,900/MT (Basic prices, GST@18% extra).

Pakistan steel mills remain active for imported scrap; offers rise further by USD 5-10 – Imported scrap offers in Pakistan hiked quickly by USD 10/MT on W-o-W basis. Current price assessment for HMS 1&2 from Dubai in containers is around USD 315/MT, CFR Qasim while offers for containerized Shredded scrap from UK and Europe origins at USD 335-340/MT, CFR Qasim. Offers for HMS from South Africa are still on the higher side and above USD 320/MT, CFR Pakistan. Pakistan based steel mills are actively booking scrap cargoes. Less availability of scrap from major suppliers due to approaching winters is enforcing the need to stock the material.

Scrap importers in Bangladesh remain less active, ship breaking scrap remains a preference – Price assessment for Shredded scrap in containers increased this week to USD 350/MT, CFR Chittagong. Offers for Dubai HMS stood at USD 330/MT, CFR While P&S prices assessed at USD 350-355/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 380/LDT for general cargo and USD 400/LDT, CFR for tanker cargoes. A bulk vessel ‘CS Calla’ carrying 32,980 MT ferrous scrap from Australia is seen at anchorage in Chittagong port. Bangladesh scrap importers are still in concern of prolonged port congestion resulting in the increased waiting time for scrap vessels and hiked freight charges.

Global imported scrap reference prices as on 25 Nov’17 –

Source: SteelMint Research