Global Ferrous Scrap Market Overview - Week 6, 2019
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Global scrap prices soared on active restocking by Turkish steel mills this week amid recovering rebar export prices. Turkish steel mills booked several shipments pulling prices up by around USD 20/MT in a weeks' time. Following the trend, prices in South Asian markets like India, Bangladesh and Pakistan and South East Asian markets like Taiwan and Vietnam observed hike in imported scrap offers. However domestic scrap prices in China remained unchanged amid ongoing New Year holidays. While Japanese participants await for Kanto Tender results next week anticipating prices to have already bottomed out. South Korean steel mills stay sidelines on ample stock in hand.
Turkey steel mills book several deep-sea scrap cargoes on hike in rebar export prices - Steel mills in Turkey aggressively procured scrap cargoes (around 10 vessels) as soon as buyers started accepting higher rates for rebar in the global markets. A jump of around USD 40-50/MT in rebar export prices aid steel mills to raise their costing for imported scrap resulting in a lift in scrap prices by USD 15-20/MT on a W-o-W basis. Towards closing of the week, suppliers HMS 80:20 targeted offers moved up in the range USD 330-338/MT, CFR.
In recent deals confirmed, UK supplier sold 15,000 MT Shredded at USD 335/MT and 25,000 MT Bonus at USD 343/MT, CFR while US supplier sold a scrap cargo comprising of 5,000 MT HMS 1&2 (80:20) at USD 330/MT, 20,000 MT Shredded at USD 335/MT and 5,000 MT of P&S scrap at USD 340/MT, CFR. SteelMint's price assessment of US HMS (80:20) stands at around USD 330-332/MT, CFR against USD 315/MT, CFR reported last week. While assessment of HMS 1&2 (80:20) of European origin stand at around USD 320-322/MT, CFR.
Japan's scrap market eyes a lift in 'Kanto Tender' bids for Feb'19 - Japan's local scrap market remained less working on lunar holidays this week. Participants await monthly Kanto Association's scrap export tender scheduled on 13th Feb'19 next week anticipating prices to turn up and lesser impact of South Korea on Japanese prices in the near terms. Recent bidding for H2 heard in the range of JPY 28,500-29,500/MT (USD 260-269) according to sources, recently a steelmaker purchased H2 scrap at JPY 29,000/MT (USD 264). While Tokyo steel kept scrap prices unrevised on maintenance activities at plants.
China's domestic scrap prices unchanged amid New Year Holidays - China's largest scrap consumer, Shagang maintained scrap prices unchanged at RMB 2,650/MT inclusive of 16% VAT for HMS (6-10 mm thickness) in Zhangjiagang.
Indian imported scrap prices climb on improving local steel prices - Indian imported scrap market observed a lift in prices by USD 10-15/MT on a W-o-W basis following sharply increased global prices. Shredded scrap from UK and USA traded in containers in the range USD 340-345/MT, CFR Nhava Sheva. Domestic scrap prices edged up by around INR 400-500/MT on improving local prices for billet and rebar.
Dubai and South Africa HMS assessed at USD 330-335/MT, CFR and assessments of HMS 1&2 from UK/Europe and West Africa stand at around USD 320-325/MT, CFR and USD 315-320/MT, CFR depending on quality.
Rising imported scrap prices limit trades in Pakistan - Asking rates for Shredded scrap reported in the range USD 340-345/MT, CFR Qasim. However, poor sales of Bala billets and rebar resulted in limited scrap trades keeping buyers holding back purchases this week.
Limited trades of Shredded reported at USD 335-340/MT, CFR Qasim. Offers for HMS scrap from Middle East and South Africa heard stable at around USD 330/MT, CFR amid limited inquiries at the moment. Domestic Bala has last been assessed at PKR 73,000-73,500/MT (USD 525-530/MT).
Bangladesh scrap bookings remain slow on sufficient inventories - Scrap yards based in Europe, UK and Canada were quoting containerized Shredded scrap in the range of USD 350-360/MT, CFR Chittagong. However, buying interest remains USD 5-10/MT below these levels and hardly any major deal concluded amid disparity between offers and bids. HMS 1 from South American countries like Venezuela, Brazil and Chile heard majorly in the range of USD 335-345/MT, CFR. Local scrap prices in Bangladesh turned down by BDT 500-1000/MT to BDT 35,500/MT on a weekly comparison. Shipyard scrap prices reported in the range BDT 37,000-37,200/MT, ex-Chittagong.
