Global Ferrous Scrap Market Overview-Week 44

Ahead of approaching winter season restocking activities have gained momentum in most of the major scrap importing markets this week. Japanese H2 scrap buyers have started fetching higher stocks at present. Tokyo Steel raised scrap purchase for its Tahara works by Yen 1,000. South Korea steel maker - Hyundai Steel kept bid prices unchanged for Japanese H2 scrap. Ferrous scrap offers in India and Bangladesh dropped marginally while remained stable in Pakistan on W-o-W basis. Chinese leading scrap buyers raised domestic scrap purchase prices.

Turkey imported scrap offers witness corrections in the recent trade - This week Turkish market witnessed strong buying sentiments amid minor upward movement in offers. Assessment for US origin HMS (80:20) stood at USD 304/MT, CFR.while price indices for Shredded and Bonus scrap stood at USD 309/MT and USD 315/MT respectively. In a trade deal reported lastly, Ekinciler Steel mill in turkey booked 16,000 MT Bonus from Thor industries in Russia at USD 315.5/MT, Turkey.

China's Shagang Steel raised domestic scrap buying bids by USD 9/MT- The largest ferrous scrap consumer in China, Shagang Steel has hiked its scrap buying prices on 21st Oct in order to restock higher materials before the upcoming winter season. Shagang is now paying Chinese Yuan 1880/MT (USD 284) for HMS scrap delivered to its works in Jiangsu Province in China. Earlier to this, the company was fetching scrap material at Yuan 1820/MT (USD 274).These prices are noted as the highest since last three years. Tianjin province in China has recently declined the minimum export prices for ferrous scrap from USD 180/MT to USD 120/MT in order to increase exports from the same province.

Tokyo Steels raise H2 scrap purchase price at Tahara works by USD 9/MT- Japan's leading steel producer Tokyo Steel has increased its scrap buying prices on 27th Oct by Yen 1000/MT (USD 9) at Tahara works in order to strike a balance between local supply and demand. However, bid prices at all other works remain unchanged. Now H2 scrap fetches Yen 32,000/MT (USD 280) at largest work in central Japan-Tahara. While the same grade fetches Yen 31,000/MT (USD 271) at Utsunomiya, Okayama and Kyushu works and Yen 30,500/MT at Takamatsu Steel Center.

Hyundai Steel keeps bid prices for H2 Scrap unchanged - South Korean leading steel maker - Hyundai Steel keep its bid price for Japanese H2 scrap Unchanged at Yen 31,000/MT, FoB (USD 272). However, suppliers suspect if the company managed to get any cargo at this price level. Most of the traders expect prices to inch up as Japan's domestic scrap demand remains strong amid ongoing peak construction season in Japan. The local companies have increased their scrap purchases in order to fulfill billet export contracts in hand.

Indian imported scrap offers drop marginally, Buying subdued- Imported scrap offers to India heard down for containerized HMS 1&2 (80:20) by USD 10-15/MT, offers assessed at USD 285-300/MT, CFR for Dubai origin while above USD 305/MT for Australia origin for CFR Nhava Sheva. Offers for Shredded scrap for both UK and Europe origins assessed nearly stable around USD 320-330/MT, CFR Nhava Sheva. A special steel manufacturer Jindal Stainless Ltd has brought 10,000 MT Shredded scrap at USD 320/MT levels from India other than this no major deals reported by market participants. Currently, HMS (80:20) in Mumbai is assessed at INR 20,700/MT and that in Chennai is around INR 20,300-20,700/MT (Basic prices, GST@18% extra).

Thin trades for imported scrap continue in Pakistan; Offers stable - Imported scrap offers in Pakistan remained stable on W-o-W basis. Current price assessment for HMS 1&2 from Dubai in containers is around USD 303-305/MT, CFR port Qasim while offers for containerized Shredded scrap from UK and Europe origins at USD 325-330/MT, CFR Port Qasim. Few Importers heard to keep buying Shredded in containers at USD 325/MT, CFR level while few others remained waiting for clear market direction to book offered cargoes from USA.Many of the emerging importers are now looking for collective buying and trying to tie-up with the larger importers in Pakistan.

Scrap Importers in Bangladesh hold fresh bookings; Offers slip slightly - Price assessment for Shredded scrap in containers was majorly stable at USD 325-335/MT, CFR Chittagong but slightly slip for UK origin HMS 1 in containers at USD 325/MT, CFR Chittagong. Few sellers remained quoting premium scrap materials above USD 335/MT levels but most of the traders and buyers in Bangladesh kept away from booking fresh deals over the non-workable range of offers. Increased freight charges due to port congestion at Chittagong port resisted Bangladesh based steel mills from booking bulk vessels. Five new bulk vessels carrying 151,760 MT reported to arrive at anchorage in Bangladesh.

Global imported scrap reference prices as on 28 Oct'17-

Source: SteelMint Research