Global imported scrap prices witnessed a downturn from the closing of the last week. Major scrap importer – Turkey has concluded few deals at a slightly lower level towards the closing of the last week. Imported scrap prices to Southeast Asia too started following global downturn, witnessing a fall of $10-20/t as compared to the preceding week. Limited trades were reported at these levels.
Vietnam – Vietnam based buyers remained less active on prevailing bearish market sentiments. Trades have slowed down in expectation of further price correction in near term.
A Vietnam based steelmaker has booked USA origin bulk scrap cargo towards the closing of the last week. The cargo comprises 32,000 to of HMS 1&2 (80:20) at $480/t CFR Vietnam basis, credible sources reported to SteelMint. Prices have come down by $10-15/t w-o-w on prevailing bearish market sentiments.
Similarly, Japanese scrap export prices have weakened this week on lower bids. SteelMint assessment for Japanese H2 bulk offers stands at $455-460/t CFR Vietnam basis, down by $10-12/t on a weekly basis. However few traders indicated bids as low as $450/t CFR Vietnam levels. It seems declining bids have pulled down market sentiments.
SteelMint’s assessment for Japanese scrap export towards end of last week was at JPY 43,500/t ($420) FoB Japan, decreasing significantly by JPY 1,000/t ($10) w-o-w.
Tracking export offers, Japanese domestic scrap prices have also weakened. Japan’s leading EAF mill- Tokyo Steel had cut its scrap purchase price for Utsunomiya plant (Kanto region) by JPY 1,000/t ($10), immediately after Kanto result concluded on 13th Jan’21. The company is now paying JPY 42,000/t ($405) for Utsunomiya plant in Kanto region, effective from 14th Jan’21.
Indonesia – Imported scrap prices in Indonesia increased early last week, however, trades remained on the lower side. Buyers refrained from booking material considering decline in offers in the coming week.
Price idea towards mid of last week were at –
– PNS in 20 ft container: $460-470/t CFR Jakarta
– Busheling in 20 ft container: $470-480/t CFR Jakarta
– Shredded: $465-475/t CFR Jakarta
– HMS 1&2 (80:20): $445-455/t CFR Jakarta
Thailand – Offers for USA origin Shredded were reported at $475-480/t CFR Thailand and that for HMS around $470-475/t CFR.
Outlook – The market is likely to regain momentum this week with buyers seeking clarity on price trends, trade sources expect.
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