The global scrap prices improved in terms of prices as Turkey returned to the market after remaining inactive for a couple of weeks. Japanese scrap prices increased further in domestic. South Korean mills actively booked bulk scrap cargoes. China’s Shagang steel raised its domestic scrap procurement prices on tight availability. However, trade sentiments in South Asian imported scrap markets like India, Bangladesh and Pakistan remained bearish.
Turkey imported scrap prices hit 8-month high – This week, imported scrap trades to Turkey climbs to an eight-month high after Turkey returned to market. Turkish steel mills continued to book deep-sea cargoes this week for late-September and October shipments, with at least six cargoes, were booked.
SteelMint’s assessment of USA origin HMS 1&2 (80:20) scrap to Turkey stood at $288/t CFR Turkey, up by $5/t against closing of the last week.
Japan’s Tokyo Steel raised prices by JPY 500: Japan’s Tokyo steel announced a price hike this week, by JPY 500/t ($5) for all of its five works. The company is now paying JPY 25,500/t for H2 scrap delivered to its Tahara plant in Central Japan and JPY 26,000/t for the Utsunomiya plant in the Kanto region. Tight scrap availability and rise in domestic finished steel demand for construction activities in Japan resulted in a hike in scrap purchase price.
Japan’s Kansai monthly scrap export tender concluded on 25th Aug ‘20. The winning bid was awarded a total of 5,200 t of Japanese H2 at an average price of JPY 27,110/t ($256), FAS, in comparison with JPY 23,110/t in the previous tender of Jul ’20, climbed up by JPY 4,000/t ($38) m-o-m.
Hyundai Steel books Japanese scrap: South Korea’s major steelmaker – Hyundai Steel has booked Japanese bulk cargo yesterday. The company has booked 30,000 t Japanese scrap recently against the offered quantity of 100,000 t. The company booked H2 scrap at around JPY 27,000/t FoB.
Another steel manufacturing giant, POSCO has concluded a deal for 10,000 t of Japanese HS, shindachi, and shredded at around JPY 32,000/t CFR ($302) Korea basis.
Dongkuk Steel has signed a contract of around 60,000 t of Japanese scrap in the last two weeks.
China’s Shagang Steel lifts scrap price by RMB 30: This week, Shagang Jiangsu Steel group hiked prices for all grades for domestic steel scrap procurement by RMB 30/t ($4) on continuous declines in scrap deliveries. The purchase price of HMS (6-10 mm) thickness has now moved up to RMB 2,750/t ($398), inclusive of 13% VAT delivering to headquarters works at Zhangjiagang North of Shanghai in China.
Indian imported scrap market remains bearish: Imported scrap offers to India have inched up towards the end of the week following hike in Turkey scrap prices. Shredded scrap offers in containers now stand at $310-315/t, CFR Nhava Sheva.
However, not many trades were reported due to bearish market sentiments in the finished long steel segment amid the prevailing monsoon season. Limited trades were observed throughout the week. SteelMint’s assessment for shredded 211 scrap from UK/Europe in containers stands at around $313/t CFR Nhava Sheva, unchanged w-o-w.
Few HMS trades were also reported from Dubai at $292-295/t CFR Mundra level earlier this week. Dubai origin HMS 1 (no gi ci) is being sold at around $300/t CFR level, whereas South African HMS 1 currently being offered in the range of $300-305/t CFR.
Muharram holidays limit imported scrap trades: Pakistani imported scrap trade activities remained slow due to Muharram/Ashura holidays this weekend (29th-30th Aug ’20). Offers to Pakistan remained firm as compared to last week, however major buyers are bidding lower than current offers. Buyers and steelmakers are looking for more clarity on offers. However, no significant deals have been reported this week. Whereas, buyers’ bid price remained at $305-307/t CFR level.
SteelMint’s assessment for Shredded 211 scrap from UK/Europe stands at $312/t CFR Qasim, up by $2 as compared to Tuesday. Fresh offers for Shredded reported at $307-315/t CFR from Europe.
Bangladesh mill booked Japanese bulk cargo: Imported bulk scrap trades to Bangladesh have moved down as dull finished steel demand affected the domestic market. On the other hand, global scrap offers have rebounded with Turkish mills bookings a series of deep-sea cargoes at increased prices.
SteelMint’s assessment of containerized shredded 211 scrap from European origin stood at $325/t CFR Chittagong. Indicative bids were at $315-320/t CFR level. Recently, Bangladesh mill has booked around 15,000 t of bulk Japanese H2 at around $305/t CFR basis.
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