Global Ferrous Scrap Market Overview: Week 45, 2019

Global ferrous scrap market observed price hike in all major markets like Turkey, China, India etc. Japanese scrap bookings by Korean mills remained low on high inventories and disparity between bids & offers.

Turkey: Turkish imported scrap prices inched up marginally in few deep-sea bulk booking being concluded this week. In recent deal reported, a Baltic supplier sold a composite cargo to Turkish mill. The cargo comprised of 32,000 MT HMS (80:20) at USD 255/MT; 1,000 MT shredded at USD 260/MT and 3,000 MT bonus at USD 265/MT, CFR Turkey.

Also a major US based supplier sold a bulk vessel to an Aegean region-based steel mill, comprising of HMS 1&2 (80:20) at USD 260 /MT, shredded at USD 265 /MT and bonus grade at USD 270 /MT, CFR Turkey.

As per SteelMint's methodology, assessment of US-origin HMS 1&2 (80:20) scrap has inched up marginally by USD 2/MT W-o-W and stands at USD 260/MT, CFR Turkey, against the last report in the opening of this week. The assessment of European origin HMS 1&2 (80:20) now stands at around USD 254/MT, CFR Turkey.

Japan: This week no bids for Japanese scrap was reported from Korean mills. Japanese scrap suppliers are eyeing for levels for JPY 24,000/MT FoB for H2 scrap however Korean mills are heard bidding at JPY 22,000/MT, FoB. Disparity between bids & offers, kept bookings low.

India: Imported scrap trades in India remained quite slow this week, with buying of Shredded scrap in particular remaining silent all through the week. While offers continued to move up following the uptrend in global market, very limited inquiries were observed.

SteelMint's assessment for containerized Shredded from the UK, Europe and the USA to India has stands USD 285-290/MT, CFR Nhava Sheva, with most offers now close to USD 290-292/MT now, however, no major booking was reported for Shredded, as buying interest remained significantly lower by USD 10-15/MT. Few offers of UK origin P&S were reported at around USD 300/MT CFR. HMS 1 (super) from Dubai now being offered at around USD 273-275/MT CFR.

Pakistan: Imported scrap offers to Pakistan have another hike this week, while trade activities have picked up as compared to slow activities has observed in previous week.

Assessment for containerized shredded 211 scrap from UK/Europe stands at USD 290-292/MT, CFR Qasim, up by USD 8-10/MT against last week's report. Earlier in the week, shredded 211 scrap from UK/Europe stood at USD 288/MT, CFR Qasim. HMS trades improved with UAE origin HMS 1 (super) being offered at around USD 275/MT CFR, Qasim, while UK origin HMS HMS 1&2 (80:20) being reported at USD 294/MT CFR.

Bangladesh: Imported scrap offers to Bangladesh inched up this week, while while trades improved in comparison to last week. Assessment for containerized Shredded scrap from UK, Europe and North America now stands range-bound at USD 300-305/MT, CFR Chittagong, widening the range USD 3-5/MT in comparison to last week's report.

HMS 1 offers from European and Australian origins remain at around USD 285-290/MT CFR Chittagong, while HMS 1&2 (80:20) offers varied as per origin.

China: Eastern China's largest private ferrous scrap consumer and EAF steelmaker - Shagang Jiangsu increasing its purchase price by RMB 80/MT (USD 11) effective from 7th Nov'19. The price hike comes after 3 weeks of unchanged bids by the company.

Post the said price cut,As per updates, Shagang Steel is paying RMB 2,780/MT (USD 397) inclusive of 13% VAT for HMS (6-10 mm thickness) delivered to headquarter works situated in Zhangjiagang north of Shanghai in China up by RMB 80/MT against the last report