Global Ferrous Scrap Market Overview - Week 24, 2019

Global ferrous scrap markets witnessed downtrend in all the major markets amid limited demand this week. Further price correction in Turkey pulled down global ferrous scrap offers also for South Asian and East Asian markets. Japanese scrap prices moved further down on account of lowering of bids in June's Kanto Tender. South Korean Hyundai Steel lowered Japanese scrap purchase bids and booked bulk cargoes from US & Russia. China's Shagang Steel held domestic scrap purchase price unchanged. Taiwan's Feng Hsin Steel rolled over its domestic scrap and rebar prices this week.

Turkey - Imported scrap prices in Turkey down USD 8-10/MT on weekly basis. Steel Mills observed flurry of activities towards closing of the week, to take advantage of lowering global scrap prices. However further correction remains limited.

In recent deals reported, one of the leading US origin recyclers sold HMS 1&2 (80:20) at USD 293/MT, Shredded at USD 298/MT, CFR and Bonus scrap at USD 303/MT, CFR Turkey to the Marmara based steelmaker.

Assessment of US origin HMS 1&2 (80:20) scrap has lowered to USD 292-293/MT, CFR Turkey, down by USD 5-6/MT against the last report. In line with this, an assessment of Europe origin HMS stands at around USD 287-288/MT, CFR. A premium of US material over Northern European scrap stands at around USD 4-5/MT.

Japan - Japan's monthly ferrous scrap export tender, 'Kanto Tetsugen' concluded this week (11th Jun'19) with average bids falling by USD 15/MT against last month as a total of 20,300 MT of scrap was auctioned with four winning bids presented at JPY 28,967/MT (USD 267).

Japan's Tokyo Steel lowered the domestic H2 scrap purchase twice this week by JPY 500/MT each time. After the 2nd price cut, the company is paying JPY 29,000/MT (USD 268) for H2 scrap delivered at Tahara plant in central Japan and Kyushu works in the Western region while for H2 scrap delivery to Utsunomiya plant, the new price has moved down to JPY 28,500/MT (USD 267).

South Korea - South Korean Steelmaker Hyundai Steel lowered the bids for Japanese scrap purchase by JPY 1,000/MT (USD 9) this week after a gap of 3 weeks while the current bis stands at JPY 29,000/MT (USD 268), FoB Japan.

The company booked a mixed grade bulk cargo from USA of 40,000 MT quantity with 8,000 MT HMS 1 at USD 305/MT, 2,000 MT of HMS 2 at USD 300/MT, 5,000 MT of P&S scrap at USD 315/MT and 25,000 MT of high grade scrap Shindachi Daichibara (SD) at USD 310/MT, CFR South Korea. Another deal by the Steelamaker under negotiation is for Russian A3 Grade Scrap for USD 295/MT, marginally lower than the previous booking from Russia.

India - Indian imported scrap prices continued softening in recent deals concluded on still poor demand. Lowering billet and sponge iron prices put domestic scrap prices under pressure while weakening global ferrous scrap prices kept sentiments weak for imported scrap.

SteelMint's assessment for containerized Shredded from Europe, UK and US stand in the range USD 318-325/MT, CFR Nhava Sheva with limited trades being reported in this range. Few offers of Shredded scrap from leading suppliers in UK assessed in the range of USD 323-327/MT, CFR.

Dubai origin HMS 1&2 scrap traded in very limited volume in the range of USD 317-323/MT, CFR Nhava Sheva. UK and Europe origin HMS scrap in containers remain at around USD 300-305/MT, CFR. West African containerized HMS stood in the range of USD 305-310/MT CFR.

Pakistan - Pakistan govt announced its Budget for fiscal year 2020 in the Parliament with abolition of special regime tax, removal of FED exemption for tribal areas and benchmarks for electricity consumption. Steel market is looking forward to the impact of the said changes on the industry, while scrap import remained slow on returning from Eid holidays.

Assessment for containerized Shredded 211 scrap from US and UK is down by USD 7/MT against last week and stands at USD 320-325/MT, CFR Qasim, with limited deals reported at USD 2-3/MT lower. Prices have dropped 8-10 USD against Pre Eid levels. Dubai origin HMS 1 offers remains unchanged at USD 330-333/MT, CFR on still limited supply while South African HMS 1 is being reported at around USD 325-330/MT, CFR Qasim. Local Steel market yet to fully resume operations.

Bangladesh - Imported scrap offers to Bangladesh have weakened on account of further softening of prices at the global level while market is still returning from Eid Holidays. National Budget has been announced on 13th June as the industry is waiting for clarity of its impact on the steel sector.

Assessment for containerized Shredded scrap from the North America & Europe stands in the range of USD 337-340/MT, CFR Chittagong, down by USD 8-10/MT against the last week. Offers for South American HMS in containers assessed in the range of USD 325-327/MT, CFR Chittagong, while Bulk cargo offers for HMS were heard in the USD 320-325/MT range. P&S scrap offers from Australia reported in the range of USD 350-353/MT, CFR.