Global Ferrous Scrap Market Overview: Week-1, 2018

This week major scrap suppliers remained closed owing to New Year holidays. Despite no trades confirmed in Turkey price expectations from mills moved up by USD 5-10/MT on W-o-W basis amid bullish fundamentals. Few trades confirmed by importers in India and Pakistan at hiked prices amid lowering inventories, indicated scrap markets are likely to remain strong in coming days. Steelmakers in Bangladesh remained less competitive with no significant trades for imported scrap. Chinese Shagang steel cut scrap purchase prices by RMB 60/MT further.

Turkey imported scrap price expectations hiked for Feb'18 shipments - Imported scrap market witnessed limited trades in Turkey this week. The price assessment for US origin HMS 1&2(80:20) now lifted to USD 375/MT, CFR Turkey. Scrap yards in major scrap supplying countries expected to reopen properly in next week and buying is expected to resume actively in next week. Most of the suppliers now expect prices to lift further for remaining Feb'18 shipments as the domestic rebar export prices are bullish in Turkey.

China's Shagang Steel cut scrap purchase prices further by USD 9/MT- The largest ferrous scrap consumer in China, Shagang Jiangsu Steel has cut its domestic scrap buying price by RMB 60/MT (USD 9) this week. Shagang is now paying RMB 2590/MT (USD 399) for HMS scrap not less than 6 mm delivered to its works in China inclusive of 17% VAT. Earlier to this, the company was fetching same grade scrap at RMB 2650/MT (USD 408).Prices for scrap had been quite high in China compare to combine cost of Iron ore and Coal causing steelmaking through blast furnace more effective. Thus, Shagang has registered second consecutive price cut for scrap.

Indian scrap market observed new trades; Prices moved upward - Imported scrap offers to India pushed up further in recent trades concluded in India. Offers for USA origin Shredded scrap in containers increased to USD 380-385/MT, CFR Nhava Sheva while HMS scrap in containers traded at USD 350-355MT from USA, at USD 360/MT from Australia while P&S at USD 380/MT, CFR. Strong local markets supported scrap importers to enquire for bulk cargoes However no deals for bulk cargo from Indian importers reported yet. Imported scrap offers leaped four years high now in India. Domestic scrap prices for HMS 1&2 (80:20) in Mumbai is assessed at INR 23,600/MT and in Chennai is around INR 24,000/MT (Basic prices, GST@18% extra).

Pakistan imported scrap prices surged further; Thin trades reported - Imported scrap offers in Pakistan surged further this week by USD 10-15/MT. The price assessment for containerized Shredded 211 scrap from UK and US stood at USD 380-385/MT, CFR Qasim. Offers for Dubai origin HMS 1&2 assessed at USD 355-360/MT, CFR Qasim. In fresh trade reported, an importer in Pakistan bought around 3000 MT of Shredded scrap from USA at USD 377/MT and another exporter sold Shredded in containers at USD 383-385/MT, CFR Qasim. This week scrap demand remained very active amid falling inventories and following rising billet and domestic rebar prices in Pakistan.

Bangladesh scrap bookings remained subdued amid high offers - Price assessment for US and Australia origin Shredded 211 in containers increased this week to USD 395/MT, CFR Chittagong. While offers for HMS 1&2 assessed stable at USD 370/MT, CFR. Offers for P&S from Brazil assessed at USD 390/MT, CFR Chittagong. Most of the steelmakers preferred cheaper local scrap amid high prices resulting in limited trade in Bangladesh. Prices for ship breaking assessed stable in Bangladesh but the market was less viable than other competitors with no sale reported this week again. Prices were at USD 440/LDT for general cargo and USD 430/LDT, CFR for tanker cargoes.

Global scrap reference prices as on 06th Jan'18 -

Source: SteelMint Research