Weekly round-up: Global ferrous scrap market shows mixed trends as demand fluctuates

The global ferrous scrap market showed mixed trends as Turkiye’s imported scrap trade resumed, and China’s Shagang Steel lowered scrap buy prices throughout the week. Japan’s monthly Kanto scrap export contract bids fell by $8/t, but prices are higher than anticipated on the back of unchanged prices by Tokyo Steel this week. However, South Asian countries returned to the market as Bangladesh and India started booking in bulk whereas Pakistan resumed inquiries on lower inventories.

• Turkiye’s imported scrap trade resumes but less active: Imported scrap buyers remained less active because of the continuous hike in energy prices, but a fresh round of deals from the Baltic and Europe concluded. Moreover, mills are now looking for more discounts. Negotiations continued to happen but weak finished steel sentiments from the lower end kept mills cautious regarding fresh bookings.
  
  Suppliers have set a new target level for US scrap at up to $380/t CFR for HMS 1&2 (80:20).
  SteelMint’s assessment for US-origin HMS 1&2 (80:20) stands at $368/t CFR, down by $5/t w-o-w.
• Vietnam’s imported scrap market largely quiet: Vietnam’s imported scrap market has been mostly quiet over the last couple of weeks. However, a small parcel was heard to have been booked in today’s Kanto tender. Despite imported scrap prices continuing the downtrend, buyers and steelmakers postponed fresh bookings and were inactive in the market on the back of low movement in the finished steel sector.
  Imported scrap prices for bulk Japanese H2 are at $385/t CFR levels, unchanged w-o-w.
• Japan’s Tokyo Steel’s bids unchanged: Japan’s major EAF steelmaker, Tokyo Steel, kept its domestic scrap purchase prices unchanged today. The company lowered its bids for H2 scrap by JPY 500/t ($3/t) for all plants last weekend. Post-revision, prices of H2 scrap are at JPY 48,500/t ($336/t) delivered to the Tahara plant and JPY 49,500/t ($343/t) for the Utsunomiya plant.
• Japan’s monthly Kanto scrap export tender bids fall: The Kanto tender bid fell by $8/t on weak buying sentiment. Prices fell by JPY 1,175/t ($8/t) from JPY 51,040/t ($357/t) in September. Prices moved down in the absence of bids from buyers. Around 10,000 t of scrap were awarded and the average price for H2 scrap stood at around JPY 49,865/t ($341/t) FAS at Japan’s bellwether Kanto Tetsugen scrap export tender, SteelMint learnt from sources.
  Sources revealed that one of the bulk cargoes was booked by a South Korean mill in alliance with buyers from Vietnam, Taiwan, and other nations.
  SteelMint’s assessment for bulk Japanese H2 scrap export prices stands at JPY 49,800/t ($335/t) FOB, up by $7/t w-o-w.
• Shagang trims prices by $22/t w-o-w: China’s Shagang Steel has announced a price cut of RMB 160/t ($22/t) for the purchase of all grades of scrap this week. Post-revision, HMS (6-10 mm) prices are at RMB 2,960/t ($416/t) delivered to headquarters, including 13% VAT. Pessimistic finished steel demand and sales led to a fall in scrap prices.
• Bangladesh’s imported scrap market improves: This week, the imported scrap market in Bangladesh is displaying discordant trends as bulk bookings continued to enter the country slowly. While buyers continued to be uninterested in containers, the major mills continued to book bulk cargo at higher offers. Prices have increased marginally w-o-w, signaling a possible revival in the finished steel market. Limited bulk discounts have been observed throughout the week.
  SteelMint’s assessment of shredded scrap from the UK is currently $480/t CFR up by $7/t w-o-w
• Scrap import inquiries in Pakistan gain momentum: Imported scrap inquiries in Pakistan have gained slight momentum on lower inventories. However, the decline in steel prices towards the weekend is weighing on sentiments. SteelMint heard a few bulk scraps offers for shredded at around $450/t CFR for the UK-origin material. Some sources indicated a deal to be under negotiation. However, it could not be confirmed till the time of publishing this assessment.
  Fresh offers for UK-origin shredded scrap in containers are at $450/ t CFR, down by $5/t w-o-w.
• Containerised scrap trade dull in India: India’s containerised ferrous scrap remained volatile as the market witnessed limited trading activities throughout the week. SteelMint heard one Japanese-origin cargo containing 9,510 tonnes of shredded scrap is expected to arrive at Chennai Port during October-end. Mills are also holding back booking owing to the national currency depreciation against the dollar.
  SteelMint’s assessment of shredded scrap in India stood at $460/t CFR Nhava Sheva down by $3/t w-o-w.