Global Ferrous Scrap Market Overview - Week 48, 2018

Global scrap prices continued downtrend due to poor demand and weak sales of finished steel. Market expects steel export volumes to increase from China in coming months, which may put pressure on international scrap prices. Turkish steel mills remained largely out of market witnessing a single deal at tumbled prices. China's Shagang steel slashed scrap prices thrice amid sharply falling finish steel and billet prices. Japanese scrap prices continue crashing amid no signs of bottoming out yet. South Korean steel mills showed interest in buying cheaper Japanese scrap. Downturn in Asian steel prices turned sentiments very bearish with no bottom in sight. US export offers fell amid weigh on Asian scrap prices.

Turkey imported scrap prices tumble amid lessened trades - Turkish scrap importers remained majorly away from deep-sea cargo booking as prices are likely to fall further in coming days. A single trade deal was confirmed in the beginning of the week in which a steel mill booked UK cargo, comprising 14,000 MT of HMS 1&2 (80:20) at USD 320/MT and 6,000 MT Shredded at USD 330/MT, CFR Turkey. According to SteelMint's price assessment, HMS (80:20) European scrap stands at around USD 315-316/MT, CFR Turkey, sharply down by USD 10/MT W-o-W. Sharp decline in prices is expected as steelmakers eye USD 300/MT levels.

Tokyo Steel cuts scrap purchase price twice this week - Japan's leading EAF steel mini-mill Tokyo Steel announced two more price cuts by JPY 500/MT on 27th Nov and 1st Dec resulting in total drop of JPY 1000/MT (USD 9). H2 scrap prices hit 1 year low for all five works. Largest plant Tahara fetches H2 at JPY 31,500/MT and JPY 32,500/MT for Utsunomiya plant in the Kanto region. Bids for same grade noted at JPY 30,500/MT for its Takamatsu steel center and JPY 33,000/MT for Kyushu plant. There are no signs of bottoming out and the resistance from Japanese suppliers remains low.

China's Shagang Steel cuts scrap price thrice on falling steel prices - China's biggest scrap consumer, Shagang Steel slashed its scrap purchase price thrice by RMB 60/MT, RMB 80/MT and RMB 60/MT on 26th, 27th & 29th Nov this week. It is paying RMB 2,420/MT inclusive of 16% VAT for HMS (6-10 mm thickness) in Zhangjiagang, total RMB 200/MT down as against last weeks' report. China's billet and rebar export prices fell successively during mid-week while stabilized towards ending of the week.

South Korean Hyundai Steel cuts bid for Japanese H2 - Hyundai Steel slashed bids for Japanese scrap by JPY 1,000/MT (USD 9) as against last weeks' report. Steelmaker placed bid for high grade Shindachi at JPY 38,500/MT (USD 350), FoB and at JPY 30,500/MT (USD 279), FoB for Japanese H2. Hyundai Steel has concluded a USA origin bulk contract for HMS 1 at USD 335/MT, CFR after a long time. While South Korean domestic scrap prices continued falling for past five successive weeks. Leading steelmakers may cut price further as inventories are still high while retailers may keep scrap prices maintain at current levels as trading volume falls sharply.

Vietnamese scrap importers quiet amid bearish sentiments - On declining HRC export offers and global scrap prices, scrap buyers remain holding back purchases in Vietnam. Very limited offers heard this week while other Southeast Asian countries such as Thailand, Indonesia and Malaysia remained silent on approaching year-end festivities.

Taiwanese scrap prices remain at 1 year low levels - Price assessment for USA origin HMS (80:20) stands at around USD 292-295/MT, CFR Taiwan in containers slightly down as against last week. Weak downstream prices and availability of cheaper alternative kept scrap market silent in Taiwan.

Indian imported scrap prices fall, activities to pick up next week - Indian imported scrap market observed increased inquiries on strengthening of Rupee below 70 against USD. Offers fell by USD 10/MT over the week following sliding of global prices. Limited trades concluded as market observes "wait & watch" scenario. Participants turn hopeful on pickup in trade activities amid slight improvement in domestic market.

Offers for containerized Shredded from Europe and UK stand in the range USD 340-345/MT, CFR as against USD 350-355/MT, CFR last week. HMS 1 from Dubai and UK assessed at USD 325-330/MT, CFR Nhava Sheva. West African HMS 1&2 in 20-21 MT container stands at around USD 315-320/MT, CFR.

Pakistan's Rupee hits all time low, local market awaits new price level - On friday, PKR suffered massive hit with interbank rate increased to 142-144 levels against USD, depreciating further by 6-7% against 134 levels earlier. Very limited trades observed as market awaits economic stability. Containerized Shredded 211 from Europe and UK traded in very limited quantity at USD 333-340/MT, CFR Qasim, down USD 10/MT W-o-W. Dubai based HMS 1 was offered stable at USD 330-335/MT, CFR. Some of the furnaces are shutting down operation in order to protest on government policies. Participants await for Monday's price opening in the local steel market after digesting the impact of currency depreciation. However, market is less likely to see much of activities.

Bangladesh market observes minor trades, Local scrap prices fall - Some trades for containerized Shredded 211 heard in the range USD 355-360/MT, CFR Chittagong. HMS 1 from South America offered at USD 340-345/MT, CFR. Local scrap prices moved down BDT 1000/MT W-o-W while ship plate prices remained almost stable. Despite average movement in finish steel market, sentiments showed holding back scenario on approaching elections. Indian sponge iron export prices tumbled following weak local prices and stand at around USD 355-360/MT, CFR Chittagong.