Global Ferrous Scrap Market Overview-Week 49

This week ferrous scrap importers in Turkey were quite active and various trades were confirmed for early January shipments despite prices hiked almost USD 15/MT in Turkey W-o-W. On the other hand prices in all other major global scrap markets maintained their upward movement again in this week. Hyundai Steel in South Korea lifted scrap buying bids by USD 4-5/MT further. While imported ferrous scrap offers to India, Pakistan and Bangladesh hiked around USD 5-7/MT on W-o-W basis.

Turkey imported scrap offers climbed up by USD 15/MT in recent trade deals – This week Turkish market witnessed several bookings despite of increasing offer levels. Assessment for US origin HMS 1&2(80:20) now stood at USD 330/MT, CFR Turkey. In a recent trade deal concluded, a Turkey-based steelmaker bought HMS (80:20) at USD 330/MT from Rimeco Denmark.Iskenderun based steel mill purchased a Baltic cargo of mixed composition at USD 334/MT, CFR Turkey for January shipment.

Hyundai Steel raised Japanese scrap buying bids further by USD 5/MT – South Korean leading EAF steel maker-Hyundai Steel raised the bid prices for Japanese H2 scrap to JPY 34,000/MT (USD 305) FoB Japan, against last bids at JPY 33,500/MT (USD 300/MT) placed before a previous week. Presently, prices for other grades of scrap – HS is accessed at JPY 37,000/MT and Shindachi Press at JPY 39,000/MT, FOB Japan respectively. South Korea’s special steel manufacturer SeAH has bought some parcel from Japan of busheling at around JPY 41,500/MT CFR and market expects this prices to go up to JPY 44,000/MT CFR.

Japanese ferrous scrap offers remained strong – Japanese scrap offers for H2 now assessed at JPY 34,000/MT, FOB Japan and for New Cutting (Press) at JPY 36,800/MT (USD 328), FOB Japan. Tokyo steel Japan kept scrap purchase prices firm this week. H2 for Tahara plant fetches JPY 35,500/MT While for Okayama, Kyushu & Utsunomiya works bids placed at JPY 34,500/MT, at works gate of Tokyo Steel.

Indian imported scrap offers slightly up, buying likely to resume shortly- Imported scrap offers to India moved up by USD 5/MT this week amid strong global offers and falling stocks. It is expected that Indian steel mills will soon resume booking of imported scrap and demand also to rise sharply. Offers for Shredded scrap for UK origin in containers assessed around USD 345/MT, CFR Nhava Sheva and offers assessed for Dubai origin HMS 1&2 (80:20) at USD 315/MT, CFR Nhava Sheva. Currently, HMS (80:20) in Mumbai assessed around INR 22,400/MT and that in Chennai is around INR 21,600/MT (Basic prices, GST@18% extra).

Active buying interest for imported scrap in Pakistan drives up offers – Stronger buying interest but limited material availability has pushed up imported scrap offers to Pakistan by USD 5/MT on W-o-W basis. Current price assessment for HMS 1&2 from Dubai in containers is around USD 320/MT, CFR Qasim while offers for containerized Shredded scrap from UK and Europe origins at USD 340-345/MT, CFR Qasim. Scrap market in Pakistan is active and buyers are constantly looking for fresh scrap amid lowering inventories. Presently steel mills with very few inventories left with them are buying in small tonnages at available prices. While many of them are preferring local scrap due to very high prices in international market.

Imported Scrap trades in Bangladesh remain low, ship breaking scrap prices rise sharply – Price assessment for Shredded scrap in containers increased this week to USD 355/MT, CFR Chittagong. Offers for Dubai HMS stood at USD 335-340/MT, CFR While P&S prices assessed above USD 355/MT, CFR Chittagong. Prices for ship breaking have shown sharp upward movement in Bangladesh this week by USD 20/LDT on W-o-W basis and assessed at USD 400/LDT for general cargo and USD 420/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 meanwhile, other charges functional for detention and damages have also hiked by quite unexpected margins.

Global scrap reference prices as on 02 Dec’17 –

Source- SteelMint Research