Weekly round-up: Global ferrous scrap prices show downtrend

The global ferrous scrap import market witnessed a downward trend this week. Turkey observed decline in prices, along with the South Asian markets, owing to the drop in global prices.

Global Market highlights:

• Turkey imported scrap trade improves, but prices fall: The imported scrap trade in Turkey gained momentum this week. Buyers were seen actively restocking inventories of US, EU, and Benelux origin. The cargoes have been booked for Jan’22 shipments. SteelMint’s assessment of US-origin HMS 1&2 (80:20) stood at $492/t CFR Turkey, down significantly by $4-5/t w-o-w.

Recent confirmed deals

The Turkish lira plunged against the dollar. The lira hit a record low of 12.13 against the US dollar, vis-a-vis 10.7 assessed a week back. The currency depreciated after President Erdogan pushed for lower interest rates to boost growth, create jobs and revive his popularity ahead of the general elections in 2023, but the price shocks are having the opposite effect.

• Japan’s scrap export offers drop, further fall less likely: Japanese scrap export offers continue to decline for another consecutive week owing to lower bids received from overseas markets like South Korea and Vietnam. Trade participants mentioned that further sharp price correction in Japanese scrap seems less likely as auto output is yet to see a recovery.

SteelMint’s assessment for Japanese H2 scrap export prices stands at JPY 50,000/t ($441/t) FOB basis, decreasing by JPY 1,000/t w-o-w.

• SeAH Besteel lowers bids for Japanese scrap: South Korean steel major SeAh Besteel signed a few contracts recently. The company’s contract price for shredded scrap now stands at JPY 57,000/t ($503/t) CFR, down by JPY 1,000/t ($9/t) compared to last week, as per SteelDaily reports.

However, bids for Shindachi-bara scrap are at JPY 65,000/t ($573/t) CFR, increasing by JPY 1,000/t ($9/t) from the previous week. With the short-term plunge, resistance from Japanese suppliers seems to be gradually increasing.

• Vietnam’s imported scrap trade down on lower bids: Vietnam’s imported scrap market was mostly quiet with no major deals heard in the last few weeks. Lower bids continued to weigh down sentiments. Meanwhile, imported scrap offers have seen a continuous decline, but buyers are waiting for a clear market direction. Moreover, weak local market sentiments reduced trade.

SteelMint’s assessment for Japanese bulk H2 scrap offers are now at $495/t CFR levels Vietnam, down further by $5/t w-o-w.

• Tokyo Steel keeps scrap purchase prices unchanged: Japan’s Tokyo Steel kept its domestic scrap prices unchanged this week, as the company adjusted its purchase price twice last week. The company continued to pay a bid price of JPY 55,000/t ($485/t) delivered to the Tahara plant located in central Japan and the Utsunomiya plant situated in the Kanto region.
•  Shagang Steel scrap purchase prices stable: China’s Shagang Jiangsu Steel prices remained unchanged this week after the company announced three price cuts in the last week by RMB 180/t ($28/t) for all grades from 19 Nov’21.

After the revision, the price of HMS (6-10mm) stands at RMB 3,240/t ($507/t), including 13% VAT, delivered to headquarters. Bearish steel market sentiments and piling up of inventories at mills have led to the cutback in scrap buy prices.

• Bangladeshi imported scrap market turns quiet: The imported scrap market in Bangladesh has turned silent since the beginning of this week after aggressive bulk bookings were observed towards last weekend. Meanwhile, imported scrap offers recorded a minor decline following the international price drop.

SteelMint’s daily assessment for UK-origin shredded in containers was at $570/t CFR Chittagong levels, decreasing $5/t w-o-w.

• Pakistan’s imported scrap prices fall: Pakistan’s imported scrap trade remained slow for yet another week. The market is mostly quiet as buyers are cautious and waiting for a further price correction.

SteelMint’s daily assessment of shredded scrap of UK/EU-origin stood at $555/t CFR Port Qasim, down by $5/t w-o-w.

• India’s imported scrap market silent: India’s imported scrap trade remained silent for yet another week with no aggressive bookings being observed. Imported scrap offers saw a slight correction as compared to last week. Market players continued to lie in wait for further price corrections due to inactive domestic market sentiments.

As per SteelMint’s daily assessment, shredded stood at $552/t, stable w-o-w against end of last week.