Weekly: Global ferrous scrap market highlights, Week-18

• Turkey’s imported scrap price up further on increased billet demand
• Shagang Steel raised scrap prices by RMB 50/t ($8)
• Japanese scrap prices up by $5-10/t for China
• South Asia scrap offers rose by up to $10-15/t

Country wise details are as follows – 

• Turkey’s imported scrap price up around $20/t w-o-w – Imported scrap prices in Turkey have moved North throughout the week. Limited trades were reported in the past few days at increased offers. Buyers are expecting that offers may go up further before Eid holidays. Meanwhile, increasing demand for billet and rebar is expected to keep the market active in the coming days. SteelMint’s assessment for US-origin HMS 1&2 (80:20) stands at $447/t CFR Turkey, up around $20/t w-o-w.
• Trades to Vietnam remain less active – Imported scrap offers of Japanese scrap buyers like Vietnam have increased further, but trades remained less active due to bid offer disparities and prevailing holidays. Notably, Japanese suppliers were maximizing profits by selling bulk cargoes to China at higher levels. Offers to Vietnam were at $480/t CFR levels.
• Japanese scrap prices up in recent deals for China – Japanese scrap prices moved up further by $5-10/t in recent deals of around 2,500-3,000 t concluded recently at $515/t CFR basis. New offers have increased further and stood at $525-530/t CFR China. However, before the Golden Week holidays, Chinese mills have raised their bids for Japanese scrap and prices are likely to remain on the higher side in the near term.
• South Korean mills keep away from booking Japanese scrap – Major Japanese scrap buying country- South Korea remained absent this week as no bids and trades were reported. However, Japanese scrap export offers have rose marginally by JPY 500/t against last week. SteelMint’s assessment for Japanese H2 scrap export stood at JPY 45,000/t ($412) FoB.
• Tokyo Steel’s scrap prices remain untouched –Japan’s leading steel mill – Tokyo Steel has not made any price revision in scrap purchase prices this week. The company had made its previous revision on 21st Apr’ 21 by up to JPY 1000/t ($9) and paying JPY 44,000/t ($402) for H2-scrap delivered at Tahara and JPY 42,000/t ($384) for Utsunomiya works respectively.
• Indian imported scrap prices up on limited offers – Global scrap prices have maintained its momentum northwards. Indian imported scrap prices increased following the global trend, registered a hike of $10/t in recently concluded trades this week. Containerized shredded scrap deals have been concluded at $470/t CFR Nhava Sheva. SteelMint’s assessment for UK/Europe origin containerized shredded scrap is at $470-475/t CFR levels w-o-w. However, offers for Dubai origin HMS 1 in containers are at $450/t CFR.
• Bangladesh imported scrap offers up, finished steel sales fall – Bangladesh has resumed its bulk scrap bookings. A prominent Bangladesh-based steel mill has booked two deep-sea bulk scrap cargoes this week with the latest bulk cargo bookings, imported bulk scrap offers have climbed further. Price indications for bulk Japanese H2 to Bangladesh remained on a higher side and the disparity in bids and offers made the buyers cautious. Offers are now at $490/t CFR level.
  Container trades remained nil for yet another week. Extended lockdown restrictions have kept market silent, coupled with Eid holidays which kept finished steel demand low. Labour too will go back for Eid holidays in mid-May. SteelMint’s assessment for UK/EU origin shredded is at $497/t CFR Chittagong levels, registering a rise by $15/t w-o-w.
• Pakistan imported scrap offers up further on dull finished steel market – Imported trade activities in Pakistan continue to happen at increased offers. Low scrap availability in domestic market has also kept buyers active in the imported scrap market. Few trades of containerized Shredded scrap have been concluded at $472-475/t, CFR Pakistan. SteelMint’s price assessment for containerized shredded scrap stood at $470/t CFR Port Qasim, up by $10/t on weekly basis.
• China’s Shagang Steel raised scrap purchase price by RMB 50/t ($8) – China’s largest EAF steelmaker – Shagang Steel hiked scrap purchase price this week by RMB 50/t ($8) for all grades. The company is paying scrap, HMS (6-10 mm) at RMB 3,540/t ($547), inclusive of 13% VAT, delivered to headquarters.