Global ferrous scrap market witnessed a sharp hike in prices on tighter material availability and shortage of containers. Turkish scrap trades remained bullish on strong prices. Following global trends, prices in South Asian markets climbed further on supply tightness. Japanese domestic prices continued to increase on higher export offers.
- Turkish imported scrap price near two-year high in recent deals- Turkish imported scrap prices have confirmed further in a recent deal concluded yesterday. Turkish mill sales have been good and scrap supply is slowing down with Turkey still seeking many cargoes. Market insiders have accepted the price hike as active bookings have observed in this week on improved finished steel demand in the domestic and global market. In a recent deal reported for 30,000 t UK shredded scrap was sold at $340/t CFR Turkey. SteelMint’s assessment for USA origin HMS 1&2 (80:20) stands at $333/t CFR Turkey, climbed around $30/t w-o-w.
- Imported scrap prices in India up by $20/t w-o-w – Indian import scrap prices remained strong over the week as demand picked up and suppliers pushed for further hikes on their offer. Global price hike on supply tightness and increased freight rates remained the major factors behind surge in offers. Notably, the prices have reached two-years high as the same levels were recorded during Nov’18. Increase in sponge iron prices amid hike in iron ore prices supported imported scrap price hike. SteelMint’s assessment for Shredded scrap in containers of UK/EU origin stands at $360/t CFR Nhava Sheva, up significantly by $20/t w-o-w.
- Pakistan based steel mills raise rebar offers on higher imported scrap prices –Pakistan offers for import shredded scrap in containers have continued to gain momentum during the past week. Local mills have raised finished steel prices on increased scrap offers. The scrap prices may jump further as the local rebar market is not ready to accept such volatility. SteelMint’s assessment for imported shredded 211 scrap in containers from UK/Europe stands at $360/t CFR Qasim, up by $20/t w-o-w.
- Limited offers push Bangladesh imported scrap prices up – Bangladesh’s imported scrap market witnessed relatively lesser scrap bookings this week. In a recent deal, an Australian origin 24,000 t of bulk cargo has been booked by the major steel mill based in Bangladesh towards the end of last week. However, traders/buyers denied its confirmation citing limited bulk cargo availability from US & Australia. SteelMint’s assessment of containerized shredded 211 scrap from UK/Europe origins stands stable at $370/t CFR Chittagong, up $30/t w-o-w.
- Tokyo Steel raised scrap purchase price twice this week – Japan’s leading EAF mill- Tokyo Steel has announced hike scrap purchase price twice this week. First hike made by JPY 500/t was applicable for all its five works and the second hike announced on 19th Nov by JPY 1,000/t for three works. The company is paying JPY 31,000/t ($298) for H2-scrap delivered to Tahara works and JPY 27,500 ($265) for H2 scrap delivered at its Utsunomiya works.
- South Korean mills raise bids for Japanese scrap on supply tightness – Hyundai Steel has raised bids for Japanese scrap by JPY 2,000/t ($19) this week, against last bids placed towards the beginning of the month. The company has bid for only higher scrap grades and the bid price for HS is set at JPY 34,000/t level. Interestingly, no bids were put for lower grades of scrap. Korean buyers are showing more interest in higher-grade scrap. Low scrap generation and increased scrap demand have lifted scrap prices worldwide. SteelMint’s assessment for Japanese scrap export offers stands at JPY 31,000/t FoB, up by JPY 2,000/t w-o-w.
- Shagang Steel kept scrap purchase price unchanged – Eastern China’s largest EAF steelmaker- Shagang group kept its scrap purchase price unchanged from the last two weeks. The company had raised prices by RMB 100/t on 5th Nov’20. Currently price for HMS (6-10 mm) assessed at RMB 2,890/t ($440), inclusive of 13% VAT, delivered to headquarters works at Zhangjiagang North of Shanghai in China. Winter restocking has pushed up scrap prices.
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