The global scrap market sentiments softened again due to the ongoing holy Eid festival holidays. The Turkish market witnessed a downfall this week too in absence of trade. China’s imported scrap offers fell after a week-long holiday. Japan’s domestic scrap prices fall and followed the global trend & mills awaiting the outcome of the monthly Kanto tender scheduled next week.
- Turkey market lull amid Eid holidays: Turkey’s scrap import market saw a softened this week due to the Eid festival holidays in the country. Absent buyers and steelmakers kept imported scrap offers under pressure, and it may lead to mills getting another discount in the round of bookings.
SteelMint’s assessment for the US origin HMS 1&2 (80:20) is now at $540-545/t CFR levels, down by further $20-25/t w-o-w.
- Japan scrap export offers fall in absence of bids from South Korea: Japanese scrap offers continued to decline for the third straight week. The weakened currency led to a drop in imported scrap prices. Also, overseas buyers and steelmakers are likely to have low purchase intentions due to large inventory.
SteelMint’s assessment for Japanese H2 scrap export prices stands at JPY 62,000/t ($475/t) FOB, down by JPY 2,000/t ($15/t) w-o-w.
- Tokyo Steel cuts scrap prices by $8/t: Tokyo Steel has cut scrap buy prices after a gap of two weeks. The company has reduced bids by JPY 1,000/t ($8/t) for all its steelworks effective 7 May. Post-revision, the company’s bid price for H2 scrap stands at JPY 64,500/t ($495/t) delivered to Tahara, while prices for Utsunomiya are at JPY 65,500/t ($502/t).
- Vietnamese imported scrap market subdued: Vietnam’s imported scrap market remained subdued for yet another week. Following the global downtrend, buyers from the Vietnamese market too remained away from the imported scrap market. Market participants believe that offers have not yet bottomed out. Hence, they may wait for further price correction.
Japanese scrap suppliers have lowered their offers significantly to $550/t CFR levels for bulk H2, down around $20/t w-o-w.
- Chinese imported scrap prices fall sharply w-o-w: The country witnessed a fall in its imported scrap prices as the market opened after the Labour Day holidays. Currently, Japan-origin H2 price indications stand at $535/t, CFR China, falling sharply by $20/t w-o-w.
Meanwhile, USA-origin shredded scrap prices are assessed at $649/t and HMS bulk at $629/t, CFR China, lower by $5/t w-o-w.
- Bangladeshi scrap market on mute during Eid festival: Eid holidays kept the steel market silent in Bangladesh. Mills are quiet and away from the market. Offers have come down significantly in the last one month given the drop in bids and weaker steel demand. Fresh offers for UK-origin shredded in containers are at $610-615/t CFR levels, down by a further $5/t w-o-w.
Dull finished steel demand due to limited working hours and labour shortage during the holy Ramadan month kept bulk scrap bookings slow. Offers for US-origin bulk HMS are at $595-600/t CFR Chittagong, falling marginally by $2-3/t w-o-w.
- Pakistan imported scrap offers two-month low: Pakistan’s imported scrap market remained quiet for yet another week on account of the Eid holidays. Imported offers for scrap remained at a two-month low, yet buyers showed limited interest for booking any fresh material.
Offers for shredded in containers moved down to $580-585/t CFR Port Qasim, while a few offers were heard below $580/t CFR Qasim basis.
- Imported scrap trades in India subdued as mills eye further drop: The absence of active trade continued to pull down price indications for yet another week. Following the global market trend, Indian imported scrap offers have softened. Many Indian steelmakers and buyers are holding back fresh booking of imported scrap, waiting to see the next round of bookings made by Turkish buyers to get a clearer market direction.
UK-origin shredded is being offered at $590-595/t CFR levels, moving down significantly by around $10/t w-o-w.
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