Global Ferrous Scrap Market Review: Week 31

Global ferrous scrap market remained abuzz with sharp hike in Turkey imported scrap prices. Following this imported scrap offers to other nations also witnessed upwards movement.

Turkey Imported scrap prices ascended by about USD 20/MT W-o-W : Since some weeks, ferrous scrap market in Turkey was successively down but suddenly it has bounced back again this week over fresh buying activities at increasing prices for September. Large number of deals at high prices were concluded owing to optimistic sentiments in Turkey domestic rebar market.

Prices assessment for HMS 1 & 2 (80:20) at USD 318-320/MT, CFR Turkey.

Indian buyers resume fresh scrap bookings:  Indian buyers resume bulk booking in order to overcome scrap shortage prevailing in domestic market. Most of the buyer shifted towards imported scrap as an alternative to produce crude steel rather than conventional blast furnace route in which coal requirement is higher to gain economic advantage as presently coking coal prices are going too high.

SteelMint’s assessment of HMS 1&2 (80:20) from UK is at USD 290/MT, CFR. Moreover, price assessment of HMS (1&2) of Australian origin is around USD 295/MT, CFR and that of US origin is around USD 295-300/MT, CFR Nhava Sheva.

While the price assessment for Shredded scrap is at USD 320/MT, CFR Nhava Sheva.
A cargo HMS 1&2 (80:20) of Dubai origin has been booked by some Indian buyers at USD 285-290 /MT, CFR India for which expected arrival is in next week.

Market is estimated to move northward but then Indian buyers may resist booking vessels at high prices.

Pakistan scrap Importers remained inactive: Pakistan’s ferrous scrap market remained stagnant again in the week 31 and no fresh and firm inquiries for scrap imports were heard this week.

As per one local participant, currently Pakistan based steel mills are having enough inventories for next 10-15 days. And the market is expected to roll back again with buying and restocking activities by 10th August. However some other participants shared that owing to political changes in place steel mills have resisted from booking new shipments.

The offers for containerized Shredded Scrap were moved upward and remained lifted throughout the week by USD 4-5 /MT compared with the offers of previous week. Offers of Shredded scrap of UK origin are assessed at USD 315-317/MT, CFR port Qasim.

Global ferrous scrap prices – Week 31

Source: SteelMint Research