Global Ferrous Scrap Market Overview - Week 2, 2020

Most of the major markets for ferrous scrap observed mixed trend this week. Turkish mills resumed buying this week from European origins, while offers to South Asian markets rose further, with India in particular observing significant improvement in trades. Japan's monthly Kanto tender moved up.

Turkey: Imported scrap prices from Baltic and South European origins inched down in a couple of bulk cargo bookings observed this week, while no booking from US yards got concluded over the week as buyers' bids remained quite lower than the present offers.

Among the latest deals, a Mediterranean region based steelmaker in Turkey booked a bulk vessel of 25,000 MT mixed cargo from a German scrap recycling yard, comprising of 5000 MT of HMS 1&2 (80:20) at USD 297/MT, CFR, and 20,000 MT of Shredded at around USD 305/MT CFR Turkey. The cargo shipment is expected in the first half of Feb'20.

Assessment for US-origin HMS (80:20) stands at around USD 303-304/MT, CFR Turkey, inching down by USD 1-2/MT against Dec-end price levels. On the other hand, assessment from Europe stands at USD 297-298/MT CFR Turkey.

Japan: Kanto Tetsugen'- Japan's monthly ferrous scrap export tender for Jan'20 was concluded yesterday (10th Jan'20). A total of 26,100 MT of Japanese H2 scrap was awarded at an average of JPY 26,667 /MT (USD 243), FAS, as compared to JPY 25,804/MT (USD 237) in Dec'19, witnessing a significant rise by JPY 863/MT (USD 8) on a monthly basis.

Japan's Tokyo steel has kept its purchase price unchanged since last four weeks. It is being expected that after the rise Kanto result, the company may further increase its scrap purchase price.

South Korea: South Korean mills lowered their bids for Japanese scrap this week, with the prices for H2 scrap moving
down by JPY 1500/MT to JPY 25,000 /MT (USD 228) FoB Japan as compared to JPY
26,500/MT bids reported in Dec'19.

However, after the rise seen in Kanto tender's winning bids in the results concluded yesterday, South Korean
mills will have to increase its purchase bids in coming days. Meanwhile, South Korea's Hyundai Steel booked a Russian A3 grade scrap bulk vessel in large quantity for late February to March shipments.

India: Imported scrap market to India witnessed further improvement in buying activities. Trades of HMS from the Middle East and African origins got concluded at further increased prices, while renewed demand of scrap by mills and improved domestic steel fundamentals have given confidence to the market for rise in buying activities.

UAE origin HMS 1 Super (no ci gi) was sold in decent quantities at USD 310-312/MT CFR Nhava Sheva, rising by USD 5/MT on a weekly basis. HMS 1&2 (80:20) from Europe was sold at USD 295/MT CFR Nhava Sheva, while few sellers in UK offered with premium at around USD 300-301/MT CFR. West African HMS was sold at USD 302-303 at the closing of the week. Some offers for Turning were reported at around USD 285/MT
CFR.

SteelMint assessment for containerized Shredded from the USA and UK to India stands at USD 320-325/MT, CFR Nhava Sheva, up by USD 5/MT against last week. Some of the suppliers in the UK are offering Shredded scrap at USD 325/MT CFR Nhava Sheva with some sales being reported, while few USA origin offers stood lower at USD 320-322/MT CFR with some improvement in buying observed.

A major USA (west coast) based scrap recycler sold a bulk vessel of 32,000 MT of mixed cargo to a Gujarat based steel manufacturer, comprising of HMS 1&2 (80:20) at USD 335/MT, Shredded scrap at USD 340/MT and bonus (P&S) grade at USD 345/MT CFR Kandla. The loading/shipment for this vessel is expected for Feb'2020.

Pakistan: Imported scrap offers to Pakistan marginally increased this week. SteelMint's assessment for containerized shredded 211 scraps from UK/Europe remains range-bound between USD 316-320/MT, CFR Qasim, up by around USD 5/MT against last week's report. Few trades for Shredded from UK and Europe got concluded at USD 316-317/MT CFR, while fresh offers were reported up to USD 318-320/MT CFR.

UAE origin HMS 1 super (no ci gi) reported at USD 312/MT CFR Qasim, while offers for higher quality HMS sarya/melting stood at USD 320/MT CFR. Offers for South African origin HMS 1 stands at USD 315/MT CFR.Few offers for LMS bundles were also reported this week at around USD 275/MT CFR, with some bookings getting concluded.

Bangladesh: Imported scrap offers to Bangladesh moved slightly up this week with containerized shredded scrap offers from UK/Europe reported in the range of USD 330-335/MT, CFR Chittagong further up by USD 6-8/MT against last week's report, with little trades.

HMS 1&2 (90:10) and HMS 1 from Australia were being offered at USD 300/MT and 305/MT CFR respectively. Few bookings of HMS 1&2 (80:20) from Chile concluded at USD 287/MT CFR, with fresh offers around USD 287-290/MT. Offers from Australian/New Zealand origin HMS 1&2 (80:20) stood at USD 295/MT CFR.