Weekly round-up: Global scrap market moves southwards

• Turkey imported scrap prices volatile: The Turkish market fluctuated throughout the week. However, prices rebounded towards the end of the week although demand remained very limited for December shipments. SteelMint’s assessment for US-origin HMS 1&2 (80:20) stands at $500/t CFR Turkey, stable w-o-w.
• Tokyo trims scrap buy prices twice: Japan’s leading steel producer, Tokyo Steel, lowered scrap purchase bids by JPY 1,000/t ($9/t) for its Tahara steelworks this week. Post 4 Nov’21 revisions, the company’s bid prices for H2 scrap stand at JPY 57,000/t ($499/t) for the Tahara works, while prices for the other plants remained unchanged, as per reports.

• Vietnam imported scrap offers fall: Imported scrap trade in Vietnam slowed down on limited activities and lower buying interest at quoted offers.

It is heard that Japanese suppliers will reduce scrap offers to their potential buyers, due to the recent fall in domestic scrap prices. Japanese bulk H2 is being quoted at $530/tonne (t) CFR Vietnam, down by $25/t w-o-w.

• Hyundai Steel cuts Japanese scrap bids: South Korean steel major Hyundai Steel slashed bids for Japanese ferrous scrap yesterday. Bids fell by JPY 3,000/t ($26/t) for H2 grade compared to the last bid on 22 Oct’21, and are now at JPY 51,500 ($453/t) FOB Japan. Bids fell due to declining bids in the Asian markets along with the drop in Tokyo Steel’s scrap purchase prices.

• Bangladesh containarised trade continues: Bangladesh’s imported scrap trade in containers continued, after active bookings were recorded last week for Dec’21 shipments. In addition, Dhaka-based mills remained active in procuring containerised scrap.

As per SteelMint’s assessment, offers for UK/EU-origin shredded are being offered at $573/t CFR Chittagong, down by $7/t w-o-w.

• Shagang lowers scrap purchase prices by $20/t: China’s Shagang Jiangsu Steel reduced its scrap procurement prices twice this week by a total of RMB 130/t ($20/t) for all grades of ferrous scrap. After the revision, HMS (6-10 mm) stands at RMB 3,520/t ($550/t), including 13% VAT. Impacted by a weak steel outlook, scrap demand at Jiangsu’s steel mills has weakened.

• Pakistan imported scrap prices fall: With the recent fall in global scrap prices and limited bookings seen from Turkish mills, Pakistan’s imported scrap prices have also witnessed some correction in recent deals. Interestingly, now the Pakistani traders are quoting offers to the mid-sized mills, as they have not booked much due to higher previous offers, SteelMint learnt.

SteelMint’s daily assessment for shredded scrap of UK/EU-origin stands at $563/t CFR Port Qasim, stable w-o-w.

• India’s imported scrap trade muted: The scrap market remained muted for yet another week due to the ongoing Diwali festive week. Moreover, limited offers were received throughout the week amid bid-offer disparities. As per SteelMint’s daily assessment, shredded scrap are at $563/t, stable w-o-w.