Global Ferrous Scrap Market Overview-Week 52

This week importers in Turkey initiated Feb’18 bookings for scrap supporting import prices to lift further. Imported scrap offers in Asian markets like India and Bangladesh increased sharply as the suppliers quoted Shredded in bulk cargoes at around USD 400/MT level. Robust demand for Japanese scrap resulted in rising bids by South Korean Steel mills by around JPY 500/MT further to fetch higher materials. While importers in Pakistan slowed down over high prices and currency depreciation.

Turkey imported scrap offers climbed USD 15/MT on W-o-W – This week Turkish importers initiated February bookings. Around five cargo trades reported in this week at elevating prices. The recent trade pushed assessment for US origin HMS 1&2(80:20) to USD 365-368/MT, CFR Turkey. On Friday, a mill in the Iskenderun region booked a US cargo, comprising 18,000 MT HMS 1&2 (80:20) at USD 370/MT, 4,000 MT Shredded at USD 375/MT and 18,000 MT P&S scrap at USD 380/MT, CFR Turkey respectively. Suppliers now expect further healthy margins in upcoming trades as the demand for finish products too remained bullish in Turkey.

South Korean Steel mills raised Japanese scrap buying bids further by USD 4/MT – South Korean leading EAF steel maker-Hyundai Steel raised the bid prices for Japanese H2 scrap to JPY 36,000/MT (USD 318) FoB Japan, against its last bids which were at JPY 35,500/MT. Bids for H1/2 (50:50) kept at JPY 36,500/MT (USD 322), HS scrap at JPY 39,000/MT and Shindachi Press at JPY 42,000/MT (USD 350) respectively. Another leading steel mill in South Korea Dongkuk Steel placed Japanese H2 scrap bid at JPY 40,000/MT, CFR higher by JPY 500/MT than its previous bid in last week.

Japanese scrap suppliers eye high offers – Japanese scrap demand remained robust, Japanese sellers now expect offers to move above JPY 41,800/MT(USD 369), CFR however presently, no significant trades being reported as buyers are little resisting these offer levels Japan’s leading mini mill Tokyo Steel kept prices firm this week. 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.

Indian scrap import offers shot up; Buying interest subdued – Imported scrap offers to India climbed sharply this week, few offers for US origin Shredded scrap in Bulk cargoes heard at USD 395-400/MT, CFR Nhava Sheva levels for Feb’18 Shipment, following which offers for containerized Shredded pushed up at around USD 375-380/MT, CFR and Dubai origin HMS 1&2 (80:20) assessed at around USD 335-340/MT,  As of now bookings are subdued and most of the buyers are preferring domestic scrap or shifting to DRI /Sponge for steelmaking but amid the scarcity of scrap inventories and tightened availability of domestic scrap, Indian steel mills will have to place orders at higher prices for imported scrap in near term. Domestic scrap prices for HMS 1&2 (80:20) in Mumbai is assessed at INR 23,100/MT that of in Chennai is around INR 23,000/MT (Basic prices, GST@18% extra).

Scrap importers in Pakistan slowed down over currency depreciation – Imported scrap offers in Pakistan remained firm this week. Last price assessment for containerized Shredded 211 scrap from UK was at USD 360-365/MT, CFR Qasim. Importers are resistant towards making new deals as the scrap has become quite expensive over currency depreciation in Pakistani rupees against USD by around 4% in last two weeks. Few of the leading steelmakers in counter have the inventories with them which they can use for few days thus not much trades reported this week.

Scrap Import offers for Shredded rose sharply by USD 20/MT in Bangladesh – Price assessment for Australian origin Shredded in containers increased this week to USD 390/MT, CFR Chittagong. Offers for HMS 1&2 from Australia assessed at USD 357/MT, CFR While P&S from Brazil assessed at USD 370/MT, CFR Chittagong. Prices for ship breaking assessed at USD 420/LDT for general cargo and USD 430/LDT, CFR for tanker cargoes. This week a bulk vessel named ‘Camilla’ carrying 33,060 MT scrap from USA arrived at anchorage in Chittagong port in Bangladesh.

Global scrap reference prices as on 23 Dec’17 –

Source: SteelMint Research