Global Ferrous Scrap Market Overview: Week 48, 2019
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Global ferrous scrap market observed a rising trend in almost all the major markets this week. Turkey witnessed a couple of bookings at significantly increased prices, while offers to South Asian markets remained firm with slow buying activities slow. Japanese Tokyo steel hiked its scrap purchase prices while China's Shagang steel observed two price cuts in a week.
Turkey: Imported scrap prices to Turkey have moved up all through this week in a couple of deep-sea cargo bookings that concluded this week.
In recent deal reported, a Turkish mill booked 40,000 MT scrap cargo from US; comprising of HMS (80:20) at USD 272/MT; Shredded at USD 277/MT. Assessment of US-origin HMS 1&2 (80:20) scrap now stands at USD 272/MT, CFR Turkey, against USD 263/MT CFR in last week's report, while the assessment of European origin HMS 1&2 (80:20) stands at around USD 265/MT, CFR Turkey.
Japan: Tokyo Steel has hiked its scrap purchase bids by JPY 500/MT (USD 5) at all of its 5 works this week. The new prices for all grades effective from 27th Nov'19.After the said price hike, the company is paying JPY 23,500 /MT (USD 216) for H2 scrap delivered at Tahara plant in central region while JPY 22,000 / MT (USD 202) for Okayama plant, while price for H2 delivered to Kyushu works in the western region, Utsunomiya works located in the Kanto region and Takamatsu Steel Center the new price will be JPY 24,500/MT (USD 225), JPY 24,000/MT (USD 220) and JPY 21,000/MT (USD 193) levels respectively.
South Korea: Dongkuk Steel Mill one of the largest EAF steel producers in South Korea has reportedly booked a bulk vessel of 10,000 MT cargo from Russia, for A3 grade scrap. The booking has reportedly been concluded at a price level of USD 265/MT CFR South Korea.
India: India's imported scrap market has remained mostly silent with buyers generally keeping away from concluding any deals. Offers for imported scrap remained mostly stable, however, after a rise in Turkish prices this week, there is a likelihood of a further upward in the coming week.
Offers for containerized Shredded from the UK, Europe and the USA to India remain flat at around USD 285/MT, CFR Nhava Sheva, almost unchanged against last week's report with no major trades for Shredded scrap were reported on low buying interest, as domestic market sentiments remain weak.
HMS 1 offers from most origins were assessed at USD 270-273/MT CFR Nhava Sheva, while HMS 1&2 (80:20) from Europe was offered at around 260/MT CFR. UAE origin HMS 1 super (no ci gi) was reported in the range of USD 270-275/MT CFR, while West African HMS 1&2 (80:20) stood at USD 255-260/MT CFR Nhava Sheva.
Pakistan: Buyers interest for imported scrap has remained limited this week, with only a few trades being reported, however, with European yards likely to close down in a few weeks, bookings may increase in the coming weeks amid winter restocking.
For shredded scrap, few bookings were concluded later in the week at around USD 285/MT CFR Qasim, while the offers remained stable against last week at USD 285/MT CFR levels.
Bangladesh: This week a Chittagong based major steelmaker has booked a bulk vessel with 32,000 MT of mixed cargo from a USA origin recycling yard, comprising of Shredded scrap at USD 305/MT HMS scrap at USD 300/MT and Bonus (P&S) at USD 310/MT CFR Chittagong. The shipment for the same is expected in Jan' 20.
Imported scrap offers to Bangladesh in containers remain stable amid slow trading activity in the last couple of weeks, however, market participants believe that buying is expected to improve in the coming days. Offers for Shredded scrap stand at USD 296-300/MT CFR Chittagong. Prices for containerized HMS scrap remain flat, with offers for HMS 1 and HMS 1&2 (80:20) were reported at around USD 285/MT and 275-280/MT CFR respectively.
China: China's Shagang Steel announced 2 price cuts for their scrap purchase this week by RMB 30/MT each, on recent decline in billet prices, while the company has now observed 6 price revisions in Nov'19.
After the 2nd price cut, Shagang Steel is now paying RMB 2,730/MT (USD 388) inclusive of 13% VAT for HMS (6-10 mm thickness) delivered to headquarters works situated in Zhangjiagang north of Shanghai in China, down by RMB 30/MT(USD 4) against the last report of RMB 2,760/MT (USD 392) on 27th Nov'19.
