Global ferrous scrap prices moved southwards this week as Turkish buyers started booking at lower prices than usual and the other major importing countries remained on the sidelines due to weak finished steel demand. Japan’s Kanto Tetsugen ferrous scrap export tender remained inconclusive followed by consecutive price cuts by Tokyo steel.
The South Asian imported scrap market followed the global trend with subdued market activities due to difficulties in LC openings and bearish domestic market in Bangladesh, while Pakistan was suffering from a volatile currency followed by power outages and political tensions. However, the Indian scrap market saw deals due to less demand.
- Turkiye’s imported scrap prices down: Imported scrap market in Turkiye saw some deals this week, but at reduced rates after being quiet earlier this week, when most of the purchasers had vanished as a result of negative domestic sentiments. In the meantime, US import scrap prices kept falling. Due to material scarcity, suppliers are now hesitant to reduce offerings even more.
SteelMint’s assessment for US-origin HMS 1&2 (80:20) stands at $343/t CFR, down by $12/t w-o-w.
- Vietnam’s imported scrap market slow: Despite the absence of support from the downstream market, the market for scrap imports into Vietnam remained stable. There was a discrepancy in bids and offers since imported scrap prices remained on the higher side. For new bookings, steelmakers are waiting for a better picture of the market. Due to the low number of inquiries from foreign buyers as well as the slowing domestic market, Japanese suppliers have reduced their offers.
Indications for imported Japanese bulk H2 scrap stood at $370-375/t CFR, down $5/t w-o-w.
- Kanto scrap export tender in Nov fails to conclude: Japan’s scrap export price driver, the monthly Kanto Tetsugen ferrous scrap export tender, remains inconclusive for November. Lower bids from participants resulted in the tender remaining inconclusive for the second time this year after May.
Previously, the tender had failed to conclude for two straight months in November and December 2021. Lower offers from participants resulted in the tender not getting concluded for the second time this year after May.
SteelMint’s assessment for Japanese H2 scrap export prices stood at JPY 45,500 ($328/t) FOB, down by JPY 2800/t w-o-w.
- Tokyo Steel cuts scrap buy prices: Japan’s major EAF steelmaker, Tokyo Steel has lowered scrap purchase bids for its plants, totally by three times this week including twice after the Kanto tender failed due to lower bids. After the final revision, prices of H2 scrap stand at JPY 48,000/t ($339/t) were delivered to the Tahara plant and JPY 48,500/t ($343/t) to Utsunomiya works.
- Shagang raises scrap purchase prices twice this week: Jiangsu Shagang Group raised scrap buying prices for the second time this week by RMB 100/t ($14/t) for all grades for HMS (6-10 mm) prices stand at RMB 2,810/t ($392/t) delivered to headquarters, including 13% VAT. The company has increased its procurement price to restock for the upcoming winter season.
- Bangladesh’s imported scrap market silent on LC issues: For the fifth week straight, Bangladesh’s market for imported scrap has been dormant. The steel producers are having difficulty keeping up output and cash flow. The primary causes of the sluggish market continued to be the domestic market’s bearish actions, the LC issue, and low finished steel consumption because of a cash shortage.
New offers for UK-origin shredded are at $450/t CFR, down $10/t w-o-w. Indicative offers for US-origin bulk HMS (80:20) were heard at $390/t CFR, unchanged w-o-w.
- Pakistan’s imported scrap market muted: Buyers and steelmakers remained silent for another week, with offers moving southwards. Liquidity concerns, political turmoil, erratic currency exchange rates, and an unfavourable domestic finished steel market are still the major difficulties in a weak market.
SteelMint’s assessment of UK-origin shredded scrap in containers is at $420/tonne (t) CFR, down by around $8/t w-o-w.
- Prolonged lull noticed in India’s scrap market: Imported scrap prices fell for another week due to the drop in finished steel demand and sales in the market. Buyers booked just a small amount of material since previously booked cargoes are generally accessible in the market. Market participants anticipate additional price drops owing to dropping Turkish scrap prices.
SteelMint’s assessment of Europe-origin shredded scrap offers into India were at $420/t CFR Nhava Sheva, down $10-15/t w-o-w.
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