After showing mixed sentiments in the previous week, the global ferrous scrap market remained mostly bearish this week. Hyundai Steel and POSCO remained absent from booking Japanese scrap. South Asia’s scrap import market saw a continuous decline in bids which, in turn, weighed down offers. However, on the other hand, Japanese Tokyo Steel’s domestic scrap bids increased.
- Turkey scrap import prices drop to over one month low: Turkish steelmakers were absent from the scrap import market with no fresh cargo booking seen in the beginning of the week. However, a few transactions were recorded towards the weekend.
A US-based cargo of shredded and bonus was booked at $596/t CFR by an Aegean steel mill. In another deal, a Mediterranean-based mill booked Benelux-origin cargo of HMS (75:25) at $571/t CFR and bonus at $596/t CFR. The deals were not confirmed at the time of publishing the report.
SteelMint’s price assessment of US-origin HMS 1&2 (80:20) stood at $605-610/tonne (t) CFR Turkey, lower by $35-40/t w-o-w. Prices were at one-month low levels as per data maintained with SteelMint.
- Vietnam’s scrap import offers fall: Vietnam’s scrap import prices softened this week amid low buying interest from downstream users and bearish steel sentiments. Additionally, increased freight rates from Japan to Vietnam kept buyers away.
Offers for Japanese bulk H2 were at $590/t CFR levels, lower by $20/t w-o-w.
- South Korean mills quiet: South Korea’s major mills, Hyundai and POSCO, which were the most prominent buyers of Japanese scrap, remained quiet for the last couple of weeks. Interestingly, Hyundai Steel did not even present its weekly bid for Japanese material after the last bid on 7 April, before the outcome of the Kanto tender.
- Tokyo Steel hikes bids for Utsunomiya works: Tokyo Steel hiked scrap purchase prices for the third time this month. The company increased bids by $4/t for Utsunomiya works, while prices for the rest of the plants remained unchanged. The company’s bid price for H2 scrap stood at JPY 66,500/t ($526/t) delivered to Utsunomiya, effective on 19 April.
- Japanese scrap export offers soften: Japanese scrap export offers softened this week after continuous hikes observed in the last couple of months. Limited inquiries from overseas buyers compelled suppliers to further lower their offers. SteelMint’s assessment for Japanese H2 scrap export prices stood at JPY 66,000/t ($514/t) FOB, down by JPY 500/t ($4/t) w-o-w.
- Pakistan’s imported scrap prices fall in fresh deals: Pakistan’s imported scrap trade remained sluggish for another week on limited demand from end-users. However, a few bookings in small quantities continued to happen after offers were corrected.
SteelMint’s assessment for shredded scrap import prices stood at $640/t CFR, a decrease of $10-15/t on a w-o-w basis. Few offers were even heard around $635/t CFR levels.
- Bangladeshi mills silent: Bangladesh’s imported scrap trade remained subdued for another week. The negative sentiments and seasonal demand slow down the containerised scrap activities.
As mills already booked scrap a couple of weeks ago and hence, reduced their orders due to sluggish finished steel market. Nearly around 4-5 bulk scrap cargoes from the US was booked earlier this month.
Fresh offers for UK-origin shredded in containers were being quoted at $655-660/t CFR, down further by $10/t w-o-w.
- India’s imported scrap offers fall: India’s imported scrap trade remained slow due to fall in offers. However, a few deals for UAE-origin and West Africa-origin HMS were noticed throughout the week but at lower offers. Lower steel production amidst power outages also kept mills less active in imported scrap bookings.
Fresh offers for UK/EU-origin shredded were being quoted at $640-645/t CFR Nhava Sheva levels, down by a further $5/t w-o-w.
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