Weekly round-up: Global scrap prices show mixed trends even as holiday mood grips market

Global ferrous scrap prices witnessed an uptick, along with mixed sentiments, this week during the year-end holidays ahead of the new year. Prices in the South Asian countries witnessed an uptrend. On the other hand, China’s Shagang Steel kept scrap buy prices stable this week.

Global Market Highlights:

• Turkey imported scrap prices range-bound: Turkish imported scrap trades stayed subdued after active deals last week. Buyers have turned quiet now, adopting a wait-and-watch policy amid currency volatility that weighed on market sentiments.

SteelMint’s assessment of US-origin HMS 1&2 (80:20) stood at $463/t CFR Turkey.

A US-origin cargo of HMS 1&2 (80:20) was booked at $465/t CFR Turkey recently. A Venezuela-origin cargo containing HMS 1&2 (80:20) was booked at $459/t CFR Turkey.

• Japan’s scrap export market subdued on lower bids: Japan’s scrap export prices have seen a continuous downtrend since end-Oct. The inconclusive Kanto scrap monthly export tender on bid-offer disparity has further weakened bids from key buyers such as South Korea and Vietnam. Also, during the year-end holidays, both suppliers and buyers kept away from the market.

SteelMint’s assessment for Japanese H2 scrap stands at JPY 47,000/t ($408/t) FOB, down JPY 1,000/t on the week.

• Vietnam’s scrap import prices under pressure: Vietnam’s imported scrap market remained dull, owing to sluggish demand from the domestic market amid rising Covid cases. Lack of trades during the holidays this weekend dragged scrap prices further downwards.

SteelMint’s assessment for bulk Japanese H2 scrap stood at $480/t on CFR basis. Prices remain unchanged against the last assessment on 27 Dec.

• Tokyo Steel’s scrap prices unchanged: Tokyo Steel has reduced scrap purchase bids by JPY 500/t ($4/t) for two of its steelworks last week, effective 24 Dec. Post-revision, the company’s bid price for H2 scrap stands at JPY 53,500/t ($465/t) delivered to the Tahara and Utsunomiya plants, while prices for the other plants remain unchanged. Notably, this was the company’s third price cut in Dec. Lowering export prices kept domestic prices under pressure.
• Shagang Steel’s scrap purchase prices unchanged: China’s Shagang Jiangsu Steel announced a hike in scrap procurement prices for the third time last month on 21 Dec. The steel producer raised prices by RMB 150/t ($24/t) for all grades effective 22 Dec’21. After the revision, the price of HMS (6-10mm) went up to RMB 3,590/t ($566/t) delivered to headquarters, including 13% VAT.

• Bangladesh’s import market silent on slow construction activity: Bangladesh-based steel mills were silent throughout the week in terms of imported scrap purchases with a limited number of deals getting concluded amid lower construction activity due to rainfall and the holiday mood in the market.

SteelMint’s daily assessment for UK-origin shredded scrap in containers was at $562/t CFR Chittagong, up $5-10/t on the week.

Around 2,000 t of HMS 1&2 from South Africa was booked at $525/t CFR Chittagong.

• Pakistan’s import market quiet, too: Pakistan’s imported scrap market remained mostly quiet this week owing to liquidity issues. Limited offers are received during the winter holidays every year from the major suppliers such as the USA, UK, and the EU.

SteelMint’s daily assessment of UK/EU-origin shredded scrap stood at $537/t CFR Port Qasim, up marginally by $3-4/t w-o-w.

Around 1,650 t of UK/EU-origin shredded scrap in containers was booked at $538-539/t CFR Qasim recently.

• India’s scrap import offers inch up: Imported scrap prices into India recovered recently after witnessing a fall in Dec. The recovery was on account of rising domestic steel prices. That apart, there has been a resumption of active trading in neighbouring Pakistan. Market sentiments in India have improved as a result.

SteelMint’s daily assessment for fresh offers for UK/EU-origin shredded material in containers stands at $535-540/t CFR Nhava Sheva, up $2-3/t w-o-w.