Weekly: Global ferrous scrap market overview

Global ferrous scrap prices recovered this week on tightening supplies and winter restocking. Deep-sea Turkish imported scrap prices rose on flurry of deals. Following Turkish trends, prices in South Asian markets increased. Domestic prices in China and Japan also strengthened on improved demand.

• Turkish imported scrap prices up by $5 w-o-w, seven cargoes booked – Mills continued to actively restock scrap inventory which further increases import scrap prices, while the buyers even ready to pay a premium level price and get their material booked ahead of winters. Some scrap suppliers now don’t have material with scrapyards for early Dec’20 shipments, due to low scrap collection on COVID-19 pandemic. SteelMint’s assessment for USA origin HMS 1&2 (80:20) stands at $298/t CFR Turkey, up by $5/t w-o-w.
• Imported scrap prices in India at 17-months high – Imported prices for containerized shredded scrap reached their highest level since Jun’19, amid strong competing demand in Pakistan and Bangladesh. Offers have rallied due to lower scrap generation on pandemic and ahead of winter holidays. Also, hike in freight rates on shortage of containers due to mismatch in imports & exports is another reason, lifted offers. SteelMint’s assessment for shredded scrap in containers of UK/EU origin stands at $328/t CFR Nhava Sheva, up by $5/t w-o-w.
• Imported scrap price to Pakistan rise on tight availability – Imported scrap offers have increased to over one-year high as similar levels were seen in Jul’19. After witnessing subdued finished steel demand in the past few weeks, Pakistan’s domestic steel prices have shown a rebound and active restocking of scrap supported the price hike. SteelMint’s assessment for imported shredded 211 scrap in containers from UK/Europe stands at $330/t CFR Qasim, up by $5/t w-o-w.
• Bangladesh mills book bulk scrap cargoes – Bangladesh based mills have continued to remain active in bulk scrap market and were seen actively restocking ahead winters. Around 90,000 t bulk scrap cargo have been booked from origins like US, EU/UK and Japan for late Nov-early Dec’20 shipments. Limited offers for Japanese H2 were reported and stood at $360/t CFR Chittagong level. SteelMint’s assessment of containerized shredded 211 scrap from UK/Europe origins stands stable at $340/t CFR Chittagong, up by $2/t w-o-w.
• Tokyo Steel Tahara price hit over one-year high – Japan’s prominent steel manufacturer -Tokyo Steel revised its scrap purchase price twice this week for all plants by JPY 1,500/t, except Utsunomiya works. Notably, prices have not been this high since touching JPY 28,000/t for the Tahara plant on 21st Jun’19. Currently, the company is paying JPY 28,000/t ($270) for both Tahara and Okayama plant.
• South Korean mill raise bids for Japanese scrap – Hyundai Steel- South Korea’s major steelmaker, presented bids for Japanese scrap purchase yesterday. While the bid price has observed a hike of JPY 2,500/t ($24) as compared to the bid presented on 15th Oct’20. However, the company did not make any bid for Japanese H2 grade scrap for now. Japanese scrap export prices for higher grades have witnessed a sharp hike in recent bids. SteelMint’s assessment for Japanese scrap export offers stands at JPY 28,000/t FoB ($270), up by JPY 500/t w-o-w.
• Shagang Steel hiked scrap purchase price on strong demand –Shagang group rose its scrap purchase price twice this week totalled by RMB 150/t ($23) for all grades. The price for HMS (6-10 mm) currently assessed at RMB 2,890/t ($437), inclusive of 13% VAT, delivered to headquarters works at Zhangjiagang North of Shanghai in China. Reduction of scrap suppliers’ shipment and winter restocking has pushed up scrap prices.