Global scrap market witnessed a downward trend for all the major markets this week. Turkish steelmaker’s fresh booking achieved significantly low price levels, impacting the offers to South Asian and South East Asian, while consistent decline in domestic Japanese scrap market pulled down import prices of Japanese scrap for South Korea and Vietnam.
Turkey – Fresh booking of a deep sea cargo in the Turkish market from US pulled down imported scrap prices to around 3 month low levels, impacting the scrap offers to major import markets worldwide
In the latest booking, an eastern Marmara region based steelmaker booked a deep sea bulk vessel of 30,000 MT of HMS 1&2 (90:10) from a USA recycling yard at USD 275/MT CFR Turkey.
Effectively, the assessment for USA origin HMS 1&2 (80:20) has now dropped to USD 272/MT CFR Turkey, down by over USD 10/MT against last week’s report. The assessment from UK/Europe stands at USD 267-268/MT CFR.
Japan: Japan’s Tokyo Steel lowered its domestic scrap purchase bids twice in a week, at all of its 5 plants, by JPY 500-1000/MT (USD 5-9) each respectively. After the second price cuts, the company is now paying JPY 23,500/MT (USD 216) for H2 scrap delivered at Tahara plant in the central region, Kyushu works in the western region and Utsunomiya works located in the Kanto region.
The price for the higher grade “New breaking press A” scrap was lowered by JPY 1000/MT (USD 9) at Utsunomiya works and the new prices JPY 25,500 /MT (USD 234).
South Korea: South Korean mills lowered their scrap purchase bids for Japanese scrap this week. Hyundai Steel bids for Japanese H2 scrap procurement, the price moved down by around JPY 1000/MT to JPY 25,500/MT (USD 234) FoB Japan.
Another major steelmaker, YK Steel bid for Japanese H2 scrap at JPY 28,000/MT (USD 257) CFR basis.
As per the recent released reports, Hyundai steel now decided to bid on regional basis for Japanese scrap, according to the regional requirements and the first bid will be on 3rd Feb’20. The nation has divided into six regions- Hokkaido, Sakada, Niigata, Kanto, Chubu, and West Japan (Kansai-Kyushu).
India -Imported scrap offers to India moved down, following global downtrend, while buying activities picked up some momentum with both shredded and HMS bookings getting concluded. Market however remains cautious on any potential instability from Chinese steel market amid corona-virus risks.
SteelMint’s assessment for containerized Shredded 211 from North America and Europe to India now stands at USD 290-294/MT CFR, down by USD 6-8/MT W-o-W, against USD 295-299/MT last week. Few bookings for Shredded were reported to Nhava Sheva and Mundra at USD 291-293/MT CFR.
Dubai origin HMS 1 super (no ci gi) is being offered at around USD 282-284/MT CFR, while HMS 1&2 bookings were reported at around USD 272-275/MT CFR amid few bookings. UK HMS 1&2 (80:20) offers too plunged and are currently being offered at around USD 275-278/MT CFR, while South African origin HMS 1 (hand-loaded) offers are now down to USD 290/MT CFR. . West African HMS to Goa was reported to be offered at USD 283/MT CFR Goa, with bids significantly lower.
Pakistan – Offers for imported scrap declined all through the week, while trades picked up by the latter half of the week, when buyers concluded bookings a favorable price.
Assessment for Shredded 211 scrap from UK/Europe currently stand at USD 290/MT CFR, down by USD 6-7/MT against last week, while in comparison to the opening of the week, prices declined by USD 4-5/MT. Several bookings for Shredded at USD 290-291/MT were reported in the last 1-2 days.
UAE origin HMS observed some sales with HMS 1 super (no ci gi) being sold for USD 282-285/MT CFR and higher grade HMS sarya/PnS being traded at USD 295/MT CFR
Bangladesh: Imported Scrap offers to Bangladesh fell down throughout the week, however trades remained slow on cautious buyers. Assessment for containerized Shredded scrap from UK/Europe stood at around USD 305-306 /MT in the middle of the week, while further sliding down by 2-3/MT to USD 303/MT CFR Chittagong.
A Dhaka based mill booked 1000 MT of HMS 1&2 (80:20) from Chile at USD 280/MT CFR Chittagong this week. Offers from Brazil and UK stood at USD 275/MT CFR for HMS 1&2. HMS 1 from various origins including North America were reported at around USD 282/MT CFR, with Australian HMS 1 being offered at around USD 290/MT CFR.
P&S scrap offers from Brazil was reported in the range of USD 295-300/MT, while few trades for LMS bundles were witnessed this week at USD 260/MT CFR.
Vietnam – Japanese origin ferrous scrap offers to Vietnam have come down sharply by around USD 10/MT this week, following the falling Japanese domestic scrap prices and export, with Japanese H2 in bulk being offered at USD 270-272/MT CFR South Vietnam, against USD 280-282/MT CFR during opening of this week.
HS scrap in bulk being offered at USD 292/MT CFR Vietnam and Shindachi scrap at USD 302-303/MT CFR. USA origin HMS 1&2 (80:20) offers too have come down by over USD 10-15/MT and currently stand at around USD 280/MT CFR Vietnam.
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