Global Ferrous Scrap Market Overview: Week 8, 2018

The week was filled with positive price movements in all major scrap markets. Bids made by South Korean steel mills for Japanese scrap also moved up. Asian markets like India, Bangladesh and Pakistan remained on the higher side and importers remained active.

South Korean steel mills raise bids for Japanese scrap – South Korea’s leading electric arc furnace steelmaker – Hyundai Steel has raised its import prices for Japanese ferrous scrap on 23 Feb’18 by Yen 1500/MT on 23th Feb’18 . Its latest bid put for H2 grade scrap was at JPY 35,500/MT (USD 332), FoB Japan against its last bid reported on 14 Feb’18 which was at JPY 34,000/MT (USD 318), FoB Japan. Dongkuk steel also has increased import prices by JPY 1000/MT(USD 9) for Japanese scrap. Its latest bid put was at Japanese Yen 35,500/MT (USD 332), FoB for H2 grade against its last bid reported at JPY 34,500/MT (USD 323).

Indian steel mills booked around 4-5 bulk vessels in a month’s time – In last one month’s time, Indian steel mills booked around 4-5 bulk vessels for March shipments and fetched good volumes of scrap. Last week a bulk vessel of 32,000 MT was booked containing mix grades of scrap comprising 10,000 MT HMS 1&2 (80:20) at USD 378/MT, 15,000 MT Shredded at USD 383/MT and P&S at USD 388/MT, CFR Kandla respectively. As per sources, the vessel was booked by a consortium of Gujarat based steel plants.

However offers for Shredded scrap in containers is assessed around USD 390-395/MT, CFR India and offers for HMS from Dubai around USD 370-375/MT.

Two bulk scrap import bookings reported in Bangladesh – A leading steel mill in Bangladesh has booked two bulk scrap import vessels containing total around 60,000-65,000 MT scrap. According to sources, out of two vessels, one vessel has been booked from a UK based supplier containing 35,000 MT while in another deal heard USA based leading supplier sold a vessel containing 25,000-30,000 MT mix cargo at around USD 380-385/MT, CFR Chittagong.

Pakistan Buyers remained active in trading in containers – Over low inventories available and increasing global scrap offers, Pakistan scrap prices hiked sharply. As per recent conversations with market participants SteelMint learned that, Pakistan scrap market has been observing sharp hike in imported scrap prices in this week. In a recent trade deal concluded, around 7,000 MT of premium quality Shredded 211 scrap sold at around USD 397/MT, CFR Pakistan. According to sources, Pakistan based importer booked it from UK based leading scrap supplier yesterday.

This deal pushed price assessment sharply by around USD 15/MT on W-o-W basis.

Turkey imported scrap prices climb by USD 7/MT – Turkey has been witnessing series of scrap purchases at strong prices through out the week. Recently 3-4 cargoes booked at USD 358/MT levels for HMS (80:20) from Baltic suppliers. In a trade deal, an Izmir based importer IDC booked 30,000 MT cargo containing 14,000 MT HMS (80:20) at USD 358/MT, 14,000 MT Shredded at USD 363/MT and 2,000 MT Bonus at USD 368/MT CFR Izmir basis.

Global scrap reference prices as on 24th Feb’18 –