Global Ferrous Scrap Market Overview: Week 5, 2018

This week imported ferrous scrap prices continued downward movement in all major markets. Imported scrap prices in Turkey fell further by USD 10/MT W-o-W. South Korean leading EAF steelmaker Hyundai Steel further reduced Japanese scrap purchase bid by USD 9/MT. Following which Tokyo Steel in Japan also cut domestic scrap purchase prices first time in the last four months. Falling global scrap prices have reflected in recommencement of bulk cargo bookings for shredded scrap from prime importers from Bangladesh, India and Taiwan. Containerized scrap imports enhanced further in major Asian markets at falling prices this week. However, post VAT imposition HMS grade scrap offers from Dubai inched upwards.

Turkey imported scrap prices tumble down USD 10/MT on W-o-W basis - Imported scrap market recently witnessed several trades at reduced prices in second half of this week in Turkey. The price assessment for US origin HMS 1&2 (80:20) fell to USD 345/MT, CFR Turkey. Importers continued booking for March shipments at reduced prices trying to put suppliers under pressure. SIMS one of the leading scrap supplier from USA recently concluded two deals at further corrected prices for March shipment cargoes. IDC an Izmir region based importer booked HMS 1&2 (80:20) at USD 345/MT, CFR Port Izmir while sold another cargo to ICDAS, a major importer based in Marmara region comprising HMS 1&2 (80:20) at USD 345/MT, CFR Marmara for March end shipment.

Hyundai Steel cuts Japanese scrap purchase prices by USD 9/MT- South Korean leading EAF Hyundai Steel cut Japanese imported scrap bids by JPY 1000/MT second time after peak achieved.Its latest bid put on 30 Jan'18 for H2 grade scrap was at JPY 35,500/MT (USD 330), FoB Japan against its last bid reported on 23th Jan'18 which was at JPY 36,500/MT (USD 339), FoB Japan. Hyundai steel purchases monthly 200,000 to 250,000 MT scrap. Many of the South Korean steel mills are sharply reducing domestic scrap prices amid falling global scrap prices and enough scrap inventories have stored with them.

Tokyo Steel cut domestic scrap purchase prices first time in last four months - Japan's leading steel producer Tokyo Steel has cut domestic scrap buying prices. This is first price cut registered since end Oct'17. As per new price revision, Tokyo steel cut prices by JPY 500/MT (USD 5) for all grades of scrap effective from 02nd Feb'18. Now H2 scrap fetches JPY 38,000/MT (USD 346) at largest work in central Japan-Tahara. While the same grade fetches JPY 37,000/MT (USD 337) at Utsunomiya works in north Japan, H2 bids are placed at JPY 36,000/MT(USD 328) for Okayama and Kyushu works in west Japan while for its Takamatsu Steel Center company keeps bids at JPY 35,500/MT (USD 323).

Indian scrap importers remain active; one bulk vessel booked - Falling global scrap prices and increase in India's domestic scrap prices have attracted Indian mills towards booking imported scrap this week. A West India (Gujarat) based steel maker booked a bulk cargo containing 30,000 MT comprising a mix Shredded and HMS scrap from USA at around USD 370/MT, CFR Nhava Sheva. Shredded scrap in containers assessed at USD 360-365/MT, CFR Nhava Sheva while post VAT imposition, Dubai scrap offers have increased. HMS 1&2 and HMS1 in containers from Dubai sold at USD 355-360/MT, CFR and assessed around USD 345-365/MT, CFR from West and South Africa. Amid tightened supply domestic scrap price assessment hiked sharply this week on W-o-W. Offers for HMS 1&2 (80:20) in Mumbai are assessed at INR 24,800/MT and in Chennai around INR 24,700/MT (Basic prices, GST@18% extra).

Pakistan imported scrap prices fall; market silent - Imported scrap prices in Pakistan after remaining stable in beginning of this week have moved down towards the weekend. Offers for containerized Shredded 211 from USA assessed around USD 358-360/MT while from UK origins remained in the range of USD 358/MT, CFR Qasim. A Pakistan based steel maker reported that demand from Pakistan is not that strong and buyers are waiting for further decline in prices in near term and have resisted from booking material as of now Ship breaking prices remained at USD 440/LDT for dry bulk cargo and USD 450/LDT, CNF Pakistan for containers with no sale reported.

Bangladesh based steelmaker resumed bulk scrap imports - Bangladesh scrap importers resumed bulk scrap imports after a long wait as soon as bulk offers showed corrections this week. Two bulk cargoes containing premium grade of scrap sold at around USD 393-395/MT, CFR Bangladesh. Few offers for HMS in containers from West Africa and Brazil heard at around USD 360-370/MT, CFR levels. However, Bangladesh importers remained seeking for further fall in imported scrap offers for containerized scrap. Ship breaking prices assessed stable around USD 410/LDT for general dry bulk cargo, USD 430/LDT for tanker cargo and USD 440/LDT for containers respectively on CNF Bangladesh basis. In recent sales, 13,084 LDT tanker and 7,362 LDT Bulker fetched USD 438/LDT and USD 430/LDT respectively.

Global scrap reference prices as on 03rd Feb'18 -

Source: SteelMint Research