The global ferrous scrap market is mostly silent this week as Turkish steel mills were hesitant about new bookings due to weak finished steel demand and the other major importing countries too stayed away from bookings. Japan’s scrap export prices fell after a strong October. Meanwhile, Tokyo Steel and China’s Shagang Steel slashed scrap buy prices on unstable steel demand.
The South Asian imported scrap market, on the other hand, remained subdued over LC opening issues and bank restrictions in Bangladesh, while Pakistani mills were rattled by power outages and constrained cash flow.
- Turkiye’s imported scrap market down: Turkiye’s imported scrap trades remained muted since mills are reluctant to reserve any new slots due to weak demand for finished steel. The country’s scrap prices were severely constrained. However, a mid-week HMS bulk scrap booking from the US was heard from sources.
SteelMint’s assessment for US-origin HMS 1&2 (80:20) stands at $354/t CFR, down by $6/t w-o-w.
- Vietnam’s imported scrap market inactive: Due to unfavourable domestic sentiments, the market for imported scrap in Vietnam remained flat. Steelmakers and buyers were wary due to the downward trend in the rebar market.
Indications for imported Japanese bulk H2 scrap are at $375/t CFR, down by $5/t w-o-w.
- Japanese scrap export offers fall: After the uptrend in October, the Japanese ferrous scrap export market began to trend down owing to weak demand. The scrap market weakened in lockstep with global trends. The major scrap-buying nations are currently awaiting the results of the forthcoming Kanto tender, which is set to take place on 9 November.
SteelMint’s assessment for Japanese H2 scrap export prices is at JPY 48,300 ($328/t) FOB, down by JPY 1,700/t ($12/t) w-o-w.
- Tokyo Steel cuts scrap buy prices: Japan’s major EAF steelmaker, Tokyo Steel, decreased its scrap buy prices for the first time this month. The company slashed bids for H2 scrap by JPY 500/t ($3/t) for three of its plants. Post revision, prices of H2 scrap are at JPY 49,500/t ($336/t) delivered to the Utsunomiya plant. However, prices are unchanged for the Tahara plant.
- Shagang slashes scrap purchase prices by $14/t: Jiangsu Shagang Group’s scrap buying prices fell due to uncertainty in the finished steel market. The company trimmed scrap purchase prices by a total of RMB 100/t ($14 /t) for HMS (6-10 mm), which stood at RMB 2,610/t ($363/t) delivered to headquarters, including 13% VAT.
- Bangladesh’s imported scrap market silent: Bangladesh is still leery about bank restrictions on LC opening and scrap buying. Due to the weak demand for finished steel in the downstream sectors, market activity has slowed. Furthermore, mills are only working at 50% capacity because of liquidity shortage, weak demand, and power interruptions.
Indicative offers for US-origin bulk HMS (80:20) were heard at $390/t CFR, down $27/t w-o-w. Similarly, new offers for UK-origin shredded are at $460/t CFR, down $5/t w-o-w. However, deals are yet to be heard.
- Pakistan’s scrap import market moves south: Imports of scrap are progressing slowly in Pakistan. The market is currently troubled by constrained cash flows, electricity price hikes, LC challenges, and weak end-user demand. Imported scrap costs, however, kept falling. This week’s deals were only for limited quantities.
SteelMint’s assessment of UK-origin shredded scrap in containers is at $428/tonne (t) CFR, down by around $11/t w-o-w.
- Downtrend in India’s scrap import market: The scrap import market in India witnessed a continued downtrend even after the Diwali holidays. The country is facing supply crunch domestically. However, mills are booking in small slots to fulfill immediate requirements.
SteelMint’s assessment of Europe-origin shredded scrap offers into India were at $430/t CFR Nhava Sheva, down $10-15/t w-o-w.
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