Weekly round-up: Global ferrous scrap trade picks up, South Asia market quiet ahead of Ramadan

Global ferrous scrap market saw a few deals concluded this week. Scrap bookings into Turkey also picked up. Export prices from Japan continued to edge up on currency depreciation. Due to bid-offer disparity and approaching Ramadan holidays, South Asian buyers kept to the side lines. Shagang Steel revised its scrap purchasing prices further. 

• Turkey imported scrap deals resume, upside expected: Turkish imported scrap trade resumed after remaining muted last week. Russian invasion of Ukraine kept scrap buyers cautious due to the uncertain market situation. The country concluded  a couple of deals throughout the week and more such transactions are expected in the near term.

SteelMint’s assessment for US-origin HMS 1&2 (80:20) prices stood at $653/tonne (t) CFR Turkey, almost stable w-o-w. As per market sources, recyclers are expecting a hike in the next round of purchases.

• Japanese scrap export offers increase: Japanese scrap export offers rose on increasing bids amidst the currency depreciation. Currently, JPY stands at 122.5 levels against the dollar. Hyundai Steel raised bid levels and buyers from Vietnam also increased their inquiries. The depreciating Japanese currency prompted many buyers to raise their bids to take advantage of the weakened yen.

SteelMint’s assessment for Japanese H2 scrap export prices stood at JPY 66,000/t ($539/t) FOB, up by JPY 1,000/t ($8/t) w-o-w.

• Hyundai Steel further hikes bids for Japanese scrap: Hyundai Steel raised bids on 31 March for Japanese scrap by JPY 1,000/t ($8/t) for H2 grade and JPY 1,500/t ($12/t) for Shindachi bara compared to 24 Mar’22. Bids for H2 scrap stood at JPY 66,000/t ($540/t), while those for Shindachi bara were at JPY 73,500/t ($601/t) FOB.

Meanwhile, the company’s contract bids for Russian A3 scrap remained unchanged against the last bid presented on 21 Mar’22. Bids for A3 scrap this week stood at $620/t CFR.

• Vietnam books Japanese scrap: After being away for almost a month, owing to the disparity in bids and offers, Vietnam returned to importing Japanese scrap after a few bookings were done for deep-sea cargoes despite higher scrap offers.

SteelMint’s assessment for Japanese bulk H2 stood at $630/t CFR Vietnam, unchanged w-o-w.

• Tokyo Steel raises scrap purchase prices: Tokyo Steel raised scrap purchase prices for the fifth time this Mar’22. The company increased a total of $61/t for the Tahara factory in Mar’22. Post-revision, the company’s bid price for H2 scrap stood at JPY 64,500/t ($521/t) delivered to Tahara and Utsunomiya effective 30 Mar’22.

• Shagang Steel hikes scrap buy price: China’s Shagang Jiangsu Steel raised scrap procurement prices for the third time this month, sources informed. The company raised prices by RMB 50/t ($8/t) for all grades, effective 29 Mar’22. After the revision, prices of HMS (6-10mm) stood at RMB 3,920/t ($615/t) delivered to headquarters, including 13% VAT. The company raised bids in order to improve scrap deliveries amidst falling stocks due to Covid resurgence.
• Pakistan imported scrap prices inch up: Imported scrap prices in Pakistan picked up after remaining under pressure due to political instability and currency devaluation. SteelMint’s assessment for UK-origin shredded in containers stood at $650/t CFR Qasim levels, up by $5/t w-o-w.
• Bangladesh imported scrap trade remains dull: Imported scrap trade in the country remained slow on increased prices, and the approaching Ramadan month. The containerised scrap suppliers were not in a mood to sell the material at a low price and arelikely to raise prices further for April/May shipments.

On the other hand, bulk scrap buyers also remained quiet after the last deal reported a week ago. Buyers continued to restock from other sources like Australia and the US with these being more cost-effective from Japanese scrap.

UK-origin shredded in containers were being quoted at $680/t CFR Chittagong, an increase of $10/t on weekly basis.

• India’s imported scrap trade muted: Imported scrap market in India continued to remained silent with no active movements being witnessed for another week. Many steel mills were waiting for a clearer market direction.

In contrast, a few mills opted to secure domestic material due to being cost effective. Buyers were interested in booking short-sea distance cargo for prompt arrivals. Fresh indicative offers for Dubai-origin HMS hovered at $580/t CFR levels, moving up by $3/t w-o-w but deals remained absent. Meanwhile, domestic HMS (80:20) prices slipped to INR 43,200/t ($568/t) DAP Mumbai.