The global scrap market witnessed very slow trades in most major markets this week. A couple of bookings by Turkish steel mills pulled prices down. South Asian markets remained mostly silent with barely any bookings taking place even on lowered offers, as dull demand is countering the short supply of scrap. Japan’s domestic scrap market too witnessed a downtrend in prices this week, with Tokyo Steel cutting purchase price.
Turkey: Imported scrap offers to Turkey fall down in recently concluded deals this week, as slow finished steel demand during this ongoing lockdown pulled down the workable price level. However, buying activities remained slow with only 2-3 deep-sea cargo bookings reported over the last two weeks.
In the latest deal, a Mediterranean region based major steelmaker booked a 18,000 MT of HMS 1&2 (80:20) at USD 238/MT CFR Turkey, from the UK yard of a global recycler.
SteelMint’s assessment for USA origin HMS 1&2 (80:20) stands at USD 243/MT CFR Turkey, almost similar to the price level at the beginning of the week when it stood at USD 244/MT, CFR. While in comparison to the closing of last week, prices have fallen by around USD 11/MT.
Japan: Japan’s Tokyo steel lowered its scrap purchase price this week by JPY 500/MT (USD 5) at three of its works, while keeping its purchase price unchanged at the remaining two plants. The Japanese domestic scrap prices have come down by almost 50% over the last 12 months, with Tokyo Steel’s bids for H2 falling from JPY 35,000/MT at the end of March’19 to JPY 18,500/MT currently at Tahara plant.
The company now paying JPY 18,500 /MT (USD 173) for H2 scrap delivered at the Tahara plant in the central region, against JPY 19,000 earlier, while for Okayama plant and Takamatsu Steel Center the new price set at JPY 17,500/MT (USD 163) and JPY 16,500 /MT (USD 154) respectively.
India: Indian steelmakers continued their silence in the market this week due to secondary mills closed or operating at limited capacity amid extensive lockdown. No fresh bookings were reported during the week, with steelmakers have sufficient stock in the mills. Meanwhile, many previously booked cargoes which have arrived are still stranded at the ports.
SteelMint’s assessment for containerized imported shredded 211 scrap from North America is offered at USD 270/MT CFR Nhava Sheva, with very few offers were reported around this price level, although no inquiries from end users were observed.
Dubai origin HMS 1 (no ci gi) was offered at around USD 245/MT CFR, while HMS 1&2 (80:20) was witnessed at USD 235-238/MT CFR Nhava Sheva.
Bangladesh: Bangladeshi steel mills gradually increased their production to some extent this week as labor shortage was sorted up to some extent. Imported scrap offers remained stable throughout the week in comparison with last week’s offers.
SteelMint’s assessment for Shredded 211 scrap stands at USD 285/MT CFR Chittagong, however, no new trades were reported at this level. Bangladeshi buyers are expecting further price correction on account of the latest price fall in Turkey’s deal.
Pakistan: Pakistani steel mills remained quiet with no trades were reported during the week as most of the steel mills are closed, apart from few mills in KPK province which had earlier got permission to resume their operations. Domestic finished steel market witnessed some activities as few construction projects resume. Finished steel prices are currently quite high at the moment, as the correct price will be reported once the market is fully operational.
Assessment for Shredded 211 scrap from UK/Europe to Pakistan is being reported at USD 270-272/MT CFR, slightly down from the USD 275-278/MT levels of last week, however, no buying interest was observed at this level, with few bids at USD 260-262/MT CFR.
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