Prices in Turkey and South Asian countries firmed up after the New Year holidays. Japan’s Tokyo Steel has kept its purchase prices stable for the past two weeks as most of the market participants are waiting for the monthly Kanto Tetsugen ferrous scrap export tender that has been scheduled for 12 Jan’22. Meanwhile, China’s Shagang Steel has announced a hike in its scrap buy prices after a gap of two weeks.
Global market Highlights:
- Turkey’s imported scrap trade gains momentum: Turkish steel mills, after extending their silence till last week, resumed active bookings with six deep-sea cargo bookings reported this week.
A Black Sea region mill booked the first cargo comprising 22,500 t of HMS 1&2 (80:20), 7,500 t of PNS and HMS and 1, 7,500 t of shredded and 2,500 t of new cutting material at an average price of $465/t CFR Turkey.
SteelMint’s assessment of US-origin HMS 1&2 (80:20) stood at $465/t CFR Turkey, up marginally by $2/t w-o-w.
- Vietnam’s imported scrap market quiet amid holidays, rising Covid cases: Vietnam witnessed continuous silence for yet another week. Sluggish demand from the domestic market and resurgence in Covid cases persisted as the main reasons behind the silent market.
SteelMint’s assessment for bulk Japanese H2 scrap stood at $478/t on CFR basis, down marginally $2/t as against the last assessment on 3 Jan’22.
- Tokyo Steel’s scrap prices unchanged: Tokyo Steel has reduced scrap purchase bids by JPY 500/t ($4/t) for two of its steelworks in the third week of Dec’21, effective 24 Dec’21. Post-revision, the company’s bid price for H2 scrap stands at JPY 53,500/t ($463/t) delivered to the Tahara and Utsunomiya plants, while prices for the other plants remain unchanged. Lowering export prices kept domestic prices under pressure.
- Shagang Steel raises scrap buy prices by $16/t: China’s Shagang Jiangsu Steel has announced a hike in scrap procurement prices on 7 Jan’21, the first time in this month. The steel producer raised prices by RMB 100/t ($16/t) for all grades effective 8 Jan’21. After the revision, the price of HMS (6-10mm) stands at RMB 3,690/t ($579/t) delivered to headquarters, including 13% VAT.
- China’s bid-offer disparity keeps Japanese HRS scrap trade subdued: Japanese ferrous scrap offers for HRS 101 grade are heard at $530-540/t CFR China, SteelMint learnt from sources. Bids are hovering at $505-510/t CFR levels against the price indications from suppliers’ end. However, no recent deals have been concluded at higher prices amid bid-offer disparity.
- Bangladesh imported scrap market regains momentum: Bangladesh’s imported scrap market recovered this week with active containerized bookings taking place for fresh material. Increasing demand from end-users has kept mills active in the market.
SteelMint’s daily assessment for UK-origin shredded scrap in containers was at $558/t CFR Chittagong, up slightly by $2/t on the week.
- Pakistan’s imported scrap prices range-bound on limited trade: Imported scrap prices into Pakistan have remained range-bound against the closing of last week after a few mills restocked cargoes. With a majority of scrap suppliers still in a holiday mood, the sentiments remained bearish, resulting in lacklustre trade. Stable inquiries and limited offers from suppliers kept the market bearish.
SteelMint’s daily assessment of UK/EU-origin shredded scrap stood at $543/t CFR Port Qasim, up by $5-6/t w-o-w.
- India’s imported HMS scrap trade improves: Indian imported HMS scrap trade picked up this week considering the uptrend in global scrap prices and active Turkish bulk cargo bookings. However, deals for shredded scrap continued to remain low on higher bids from the neighbouring markets of Pakistan and Bangladesh.
SteelMint’s daily assessment for fresh offers for UK/EU-origin shredded material in containers stands at $540-545/t CFR Nhava Sheva, up $5/t w-o-w.
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