Global scrap market witnessed a mixed trend this week. Turkish buyers resumed buying earlier in the week, with prices in downtrend since the last two weeks, however inching up again later in the week. Offers to South Asian markets too remained firm for the most part of the week and showed slight uptick by week-closing. Japan’s export and domestic prices continued to move down for another week, while China’s domestic scrap prices inched up.
Turkey: Turkish buyers have remained slow for fresh bookings since last couple of weeks, with 3 deep sea cargoes getting concluded this week. Prices continued to move down till the middle of the week, post which, the latest booking witnessed a slight rise.
In the latest deal concluded, a USA based major recycler sold a 30,000 t cargo to Eastern Black sea region based steelmaker, comprising of 17,000t of HMS 1&2 (80:20) and 13,000t of Shredded at an average price of $ 262/t CFR Turkey.
SteelMint’s assessment for USA origin HMS 1&2 (80:20) stands at $259.5/t CFR Turkey, up by $3.5/t since mid of this week, and up by around $1/t in comparison to last week’s report.
Japan: Japan’s Tokyo Steel announced price cuts thrice this week in its scrap purchase price, with bids declining by JPY 500-1400/t ($ 5-14) each time, at all of its works. While the purchase price of Utsunomiya plant witnessed the steepest fall by around JPY 3500/t over the week.
After the third price cut, the company is now paying JPY 22,500/t ($ 209) for H2 scrap to the Tahara plant in Central Japan and JPY 21,500/t ($ 200) for the Utsunomiya plant in the Kanto region and JPY 23,500/t ($ 218) to Okayama plant.
China: This week, The Ministry of Ecology and Environment, China has announced a sweeping ban on imports of all solid waste products to china completely, from 2021. However ferrous scrap is likely to be exempted from the said ban by next year.
China’s Shagang Jiangsu Steel group observed a slight price hike this week, immediately after the Dragon boat race festival last week, for all grades of its domestic steel scrap procurement by RMB 20/MT ($ 3) against price hike was made in the last week.
The purchase price for HMS (6-10 mm thickness) stands at RMB 2650/t, inclusive of 13% VAT, delivered to headquarters works situated in Zhangjiagang North of Shanghai in China, in comparison with the last price revision to RMB 2630/t on 24th June’20.
South Korea: Japanese scrap prices to South Korea fell considerably this week for all major grades, while the company did not bid for H2 scrap this time.
The bid price for the higher grades including HS scrap, Shin dachi and Shin dachi press was set at JPY 25,000/t ($232) by the steelmaker, however, no deals were reported at this level. These bids put H2 scrap price at JPY 22,500/t ($209), further down from JPY 23,500/t prices last-week, and down by JPY 5000/t ($47) since mid-June levels.
India: Imported scrap offers to India are mostly firm this week with very few deals getting concluded. Dull finished steel demand were further impacted with a monsoon slowdown affecting the demand.
SteelMint’s assessment for shredded scrap from UK/Europe this week stood range-bound, between $ 275-284/t CFR Nhava Sheva. Earlier in the week, most offers stood around $275-280/t CFR, but by the end of the week, some uptrend was witnessed and offers moved to $280/t and above levels, CFR. Buyers’ price idea stood significantly lower.
A major steelmaker has booked a 3500 t of busheling bundles earlier this week at $302/t CFR Nhava Sheva basis. Currently, the company bidding for 6000-7000 t of shredded scrap at $ 277-278/t CFR basis.
Only few HMS offers were reported. UK origin HMS 1&2 (80:20) offers stood around $255-260/t CFR, with buyers’ bids at least $10/t or even lower. West African HMS 1&2 (80:20) being offered around $240-243 CFR.
Bangladesh: Imported scrap offers to Bangladesh remained almost stable this week, with quite limited trades witnessed, on low demand due to low production levels, cheaper availability of local shipyard scrap (which continues to move down), and some buyers expecting global offers to move down further.
SteelMint’s assessment for shredded scrap in containers from UK/ Europe stood at $290/t CFR Chittagong, against last week’s report. A Dhaka based major trader sold a 1000 t of Australian shredded at $ 290/t CFR. Most offers for shredded from UK/Europe remained stable at $290/t, with little interest from buyers.
Notably, Brazilian shredded was offered at $275-280/t, inching up by at least $5/t against last week. Brazilian HMS 1&2 (80:20) was offered at $265/t and above, while Australian HMS1&2 (80:20) reported at over $270/t CFR, with buyers’ price idea significantly lesser.
Pakistan: In the beginning of the week, few bookings of imported scrap got concluded at low prices, however, as the week progressed, the offers begin to move up, on recovery in other markets.
By week closing, SteelMint’s assessment for shredded 211 from UK/Europe stands at $282/t CFR Qasim level, increasing sharply by around $ 8-9/t against early last week when offers were recorded at around $ 273-275/t CFR. Buyers as well as traders confirmed that no Shredded offer was available below $281/t level from today.
Local scrap prices (eq to Shredded) observed a fall by PKR 1,000/t this week and stood at PKR 70,000/t inclusive of taxes.
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