Global Ferrous Scrap Market Overview-Week 51

This week importers in Turkey witnessed slowing down in scrap buying activities but prices remained mostly firm without major change on W-o-W basis. Likely, prices in all other major scrap markets remained strong amid unavailability and strong demand for imported scrap. Hyundai Steel lifted scrap buying bids by USD 5/MT further. Tokyo Steel in Japan raised domestic scrap purchase prices by up to USD 5/MT at all its works. While imported ferrous scrap offers to India, Pakistan and Bangladesh hiked around USD 5/MT on W-o-W basis thus bulk bookings remained subdued.

Turkey imported scrap offers remained mostly stable – This week Turkish market witnessed slowing down in scrap purchases after concluding 14 trade deals last week. Assessment for US origin HMS 1&2(80:20) now stood at USD 352/MT, CFR Turkey. In a recent trade deal concluded, ICDAS bought HMS 1&2 (80:20) at USD 351/MT, Shredded at USD 356/MT and Bonus scrap at USD 361/MT, CFR Turkey.

Tokyo Steel raised domestic scrap purchase prices twice in a week – Japan’s leading steel producer Tokyo Steel has raised domestic scrap buying prices twice in this week. On 12th Dec prices raised by JPY 500/MT only at its Tahara work while prices have raised by JPY 500 further at all works again on 13th Dec in Japan. Now H2 scrap fetches JPY 37,000/MT (USD 327) at largest work in central Japan-Tahara. While the same grade fetches JPY 36,000/MT at Utsunomiya works in north Japan, H2 bids are placed at JPY 35,500/MT for Okayama and Kyushu works in west Japan while for its Takamatsu Steel Center company keeps bids at JPY 35,000/MT in Japan.

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 35,500/MT (USD 315) FoB Japan, against last bids which was at JPY 35,000/MT. Another leading steel mill in South Korea Dongkuk Steel bought Japanese H2 scrap at JPY 39,500/MT, CFR. While special steel manufacturer SeAH has bought busheling parcels from Japan at around JPY 44,000/MT CFR (USD 391). Following which South Korean steel mills have raised the bid at JPY 36,000-36,500/MT (USD 320-324) for Japanese H2 scrap now.

Indian scrap importers preferred domestic scrap owing to high offers for imported – This week imported scrap offers to India heard further increased by USD 5/MT while Shredded scrap offers remained mostly stable on weekly basis. Less buying interest witnessed in the market as offers are at higher levels than expected working range. Offers for Shredded from US and Europe heard at USD 355-360/MT, CFR and HMS 1&2 (80:20) in containers from Dubai assessed at USD 330/MT, CFR Nhava Sheva. Offers from Dubai & African countries are little workable at the moment but most of the Indian steelmakers are either preferring domestic scrap or shifting to DRI/Sponge. Domestic scrap prices for HMS 1&2 (80:20) in Mumbai is assessed at INR 22,600/MT that of in Chennai is around INR 22,800/MT (Basic prices, GST@18% extra).

Pakistan imported scrap offers firm on few trades reported – Imported scrap offers in Pakistan remained firm this week. Current price assessment for containerized Shredded 211 scrap from UK is at USD 360/MT, CFR Qasim. This week a deal for Shredded scrap was reported at USD 355/MT, CFR Qasim and premium CRC scrap was sold at USD 365/MT in containers. Inventories in Pakistan for ferrous scrap are still low but high prices and currency depreciation caused buyers to remain resistant towards making new deals.

Scrap Importers in Bangladesh turned silent, Shipbreaking scrap prices remained strong – Price assessment for Shredded 211 in containers increased this week to USD 365/MT, CFR Chittagong. Offers for Dubai HMS 1 stood at USD 345-350/MT, CFR While P&S from Brazil assessed at USD 365/MT, CFR Chittagong. Prices for ship breaking assessed at USD 420/LDT for general cargo and USD 430/LDT, CFR for tanker cargoes. In a deal, HMS 1 in small volumes in containers sold at USD 347/MT, CFR Chittagong in Bangladesh.

Global scrap reference prices as on 16 Dec’17 –

Source: SteelMint Research