Weekly: Global ferrous scrap market overview

The successful hike witnessed in Kanto scrap export tender conducted last week laid down the marker for global scrap price movements. All the major players viz., Tokyo Steel, Hyundai Steel, Shagang Group increased scrap purchase prices. Despite Ramadan Holidays and the exponential rise of Covid cases, trades continued to be brisk at higher prices. Turkey and Pakistan were the notable exceptions. Here one witnessed a slight drop in prices by $5/t and lower trade volumes due to Ramadan holidays.

 Country wise snapshots are given below –

• Tokyo Steel raised scrap purchase price twice this week – Japan’s leading EAF mill – Tokyo Steel has announced two price hikes this week. Currently, the company is paying JPY 44,000/t ($404) and JPY 42,000/t ($386) for H2 scrap delivered at Tahara and Utsunomiya works respectively. Higher scrap export prices and improved domestic demand have led to price hikes in the domestic market.
• South Korean mills raised bids for Japanese scrap – South Korean mill – Hyundai Steel has increased its bid price for Japanese scrap by up to JPY 4,000/t ($37). The bid for H2 is now set at JPY 43,000/t ($395) FoB level, up by JPY 3,000/t ($27) against the last bid which was on 26th Mar’21. It was in line with the market expectations that South Korean mills will raise their bids so as to catch up with higher bids seen in Kanto Tender last week.
  In addition to it, the company has booked Russian bulk scrap cargo. The cargo comprises around 20,000-30,000 t of Russian A3 scrap and the deal was concluded at $445/t CFR level. Prices have increased measurably by $20/t against last Russian cargo booked by the company on 25th Mar’21. SteelMint’s assessment for Japanese H2 scrap export now stands at JPY 44,000/t ($404) FoB, up by JPY 500/t ($5) w-o-w.
• Bids in Kansai scrap export tender rise by $27 m-o-m – Japan’s Kansai-Cheorwon, scrap export tender was concluded with bids increasing by $27 m-o-m, following the successful hike in Kanto scrap export tender conducted last week. The winning bid in Kansai was awarded a total of 5,000 t of Japanese H2 at an average price of JPY 42,960/t FAS ($395), against JPY 39,950/t during previous tender of Mar’21.
• Vietnam scrap offers rise further – Vietnam buyers remain active in booking bulk scrap from Japan throughout this week. Offers for Japanese H2 to Vietnam are at $465/t CFR levels.
• Turkey’s mills continue to hold back scrap purchases – Turkey’s imported scrap trade have declined by $5/t. Market have slowed down in Turkey due to the Ramadan festival. Meanwhile there are lots of offers in the market against less demand which kept prices under pressure. SteelMint’s assessment for US-origin HMS 1&2 (80:20) stood at $430/t CFR Turkey, down by $10/t w-o-w.
• India’s imported scrap prices remained firm – Scrap offers have continued to to stable against last week, however trades have slightly picked up. Strict lockdown restrictions in different regions amid increasing COVID cases has kept trades limited. In addition to it, ongoing Ramadan month has also slowed down the global scrap market. Freight charges have increased by $20-30/t. SteelMint’s assessment for containerized shredded of UK/US origin is at $463/t CFR Nhava Sheva level, stable on w-o-w.
• Bangladesh bulk offers rise on active bookings – Bangladesh based buyers were active in booking bulk scrap cargoes from US and Australia. Mills have booked nearly five bulk scrap cargoes towards the end of last week on restocking before Ramadan holidays. Deal prices for US bulk bookings were heard to be at $455-470/t CFR for HMS.
  Containerized scrap buyers stay away from the market because Ramadan has started and it will take 4-5 days to adjust with the Ramadan schedule. Bangladesh and Pakistan market will be very silent this week. SteelMint’s assessment for containerized shredded of UK origin stood at $480/t Chittagong levels, up by $5/t w-o-w.
• Pakistan imported scrap trades slowed down – Pakistan’s imported scrap market has slowed down during the last few days. Trades have slowed down due to Ramadan, however suppliers have continued to hold offers firm citing container freight rate volatility. SteelMint’s assessment for UK/EU origin containerized shredded stands at $463/t CFR Qasim levels, down slightly by $5/t against last week’s closing.
• China’s Shagang steel hiked scrap purchase price sharply – China’s largest EAF steelmaker – Shagang Group has increased scrap purchase prices for all grades. The price for HMS (6-10 mm) now stands at RMB 3,490/t ($535), inclusive of 13% VAT, delivered to headquarters works at Zhangjiagang North of Shanghai in China. Domestic scrap prices gradually rose, driven by the prices of semi-finished steel billet and finished steel as scrap suppliers were not active in shipment and the scrap arrival decreased.