Global Ferrous Scrap Market Overview - Week 08, 2019
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This week major scrap markets observed bearish sentiments witnessing decline in prices except Japan where prices moved up sharply. However trade participants are of the view that surge in Japanese scrap prices is short term and might not sustain too long, considering increased inventories with South Korean mills.
Turkey imported scrap prices fall - According to SteelMint's price assessment, US origin HMS (80:20) scrap stands at USD 315-316/MT, CFR Turkey down by USD 10/MT against last week. In a recent deal reported a European supplier sold 25,000 MT HMS (80:20) at USD 307/MT and 5,000 MT Bonus scrap at USD 317/MT to a Turkish steel mill.
Indian imported scrap market observes limited trades - SteelMint's assessment for containerized Shredded from the USA and UK stands at around USD 335-340/MT, CFR Nhava Sheva, down by USD 5/MT against the last report. Offers from suppliers were being quoted in the range USD 340/MT, CFR but hardly any major deal was reported, as buyers kept waiting for further decline in offers.
South African HMS 1&2 prices was assessed USD 330/MT, CFR. While trades in 20-21 MT containers for West African HMS 1&2 scrap reported in the range of USD 310-315/MT, CFR India, lower by USD 5-10/MT against previous week. HMS offers from Dubai were reported around USD 330-335/MT, CFR Nhava Sheva. Domestic scrap prices in India have come down sharply making it more competitive over imported scrap.
Bangladesh buyers limit imported scrap trades - SteelMint's' price assessment for Shredded scrap edged down by USD 5-10/MT W-o-W in the range USD 350/MT, CFR as against the last report of USD 355-360/MT, CFR. Limited trades for containerized Shredded sold at around USD 350/MT, CFR Chittagong. According to sources, few scrap yards based in Europe, UK and USA are still quoting USD 355-358/MT, CFR levels for containerized Shredded. However, these levels seem quite high to achieve amid competitive semi-finish steel offers from India at the moment.
Containerized HMS 1 Chile, Brazil and South Africa traded at around USD 345/MT, CFR while HMS 1&2 from South American origins like Venezuela, Brazil and Chile assessed in containers in the range USD 340-345/MT, CFR Chittagong.
Imported scrap market in Pakistan silent amid limited trades - SteelMint's assessment for Shredded scrap inched down in the range USD 335-340/MT, CFR Qasim. Asking rates from leading yards in US and UK reported at around USD 340-345/MT, CFR but hardly any deal was reported for Shredded scrap amid no significant improvement in local steel demand yet. This has pulled assessment down USD 5-10/MT on weekly basis.
In a trade reported, Shredded scrap in containers sold at around USD 337/MT, CFR Qasim from UK and Europe. Containerized HMS 1 from Dubai was being reported at around USD 330/MT, CFR Qasim.
Japan's Tokyo Steel raised scrap purchase price twice this week - Tokyo Steel has raised domestic scrap purchase price twice this week by JPY 500-1000/MT and then further by JPY 500/MT at all five works on strong sentiments in Japan. The steelmaker will pay JPY 33,000/MT for H2 scrap delivered to Utsunomiya plant situated in the Kanto region. While revised H2 price stands JPY 32,000/MT at the largest plant Tahara in the central area, JPY 28,000/MT at Takamatsu steel center, JPY 32,500/MT for Kyushu works and JPY 30,000/MT at Okayama works.
As per Steel Daily report, steel scrap contracts have plummeted in Japan and domestic steel makers are contracting mainly for low priced products. Japanese scrap suppliers are offering H2 scrap at Yen 34,000/MT, FoB. Market participants are expecting the price hike to be short term.
Prices in Asian markets also observe correction - Trade sources highlighted that imported scrap prices in Indonesia and Vietnam have also gone down this week. Busheling grade scrap prices have moved down to USD 370-373/MT in Indonesia against last prices of USD 375-380/MT. Japanese H2 scrap price in Vietnam is assessed around USD 330/MT, CFR Vietnam basis, less by USD 10-15/MT W-o-W.
