Weekly: Global Ferrous Scrap Market Overview
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Global scrap market observes mixed sentiments this week, amid COVID-19 lockdown. Imported scrap offers moved up in Turkey and South Asian countries. Whereas Japan's domestic and export scrap purchase prices remained weak for yet another week, and Chinese domestic scrap purchase price again lowered this week. Further, it is expected that due to ongoing COVID-19 lockdown worldwide, both demand, as well as supply, will be on the lower side, keeping trades slow for the coming weeks.
Turkey: Imported scrap prices to Turkey rebounded sharply this week amid tight supply at yards due to low scrap availability and slow inflow. In the latest confirmed deal, a recycling yard from Russia, sold a bulk cargo to a Turkish steelmaker based in Eastern Black Sea Region, comprising of HMS 1&2 (90:10) at USD 248/MT CFR Turkey, putting the price for HMS 1&2 (80:20) from Baltic origin at USD 245/MT CFR.
Prior to this, two short sea cargoes for HMS 1&2 (90:10) of 3,000 MT each were also concluded this week, at USD 251/MT CFR Turkey, from Russian ports.
SteelMint's assessment for USA origin HMS 1&2 (80:20) was reported at USD 248/MT, increasing by USD 32-35/MT against last week and up by USD 6-8/MT against the opening of this week.
South Korea: Hyundai Steel cut its purchase price for Japanese H2 scrap this week by JPY 500/MT (USD 5) in bids presented today. The company's current bid for Japanese H2 stands at JPY 18,500/MT FOB (USD 171), in comparison to JPY 19,000/MT (USD 175) bid last week by other South Korean steel makers.
Meanwhile, Hyundai steel booked Russian A3 scrap this week, comprising of 20000 MT bulk cargo at an average of USD 209/MT CFR South Korea.
Japan: Japan's Tokyo steel lowered its scrap purchase price after over a week by JPY 500/MT (USD 5) at two of its works, while keeping its purchase price unchanged at remaining three plants. After the said price cut, the company will pay JPY 9,500 /MT (USD 180) for H2 scrap delivered at the Tahara plant in the central region, while for Utsunomiya works located in the Kanto region the price set at JPY 18,500/MT (USD 171).
China: China's Shagang Jiangsu Steel group announced price cuts twice this week for all major grades of domestic steel scrap procurement, with scrap purchase prices being cut by a total of RMB 180/ MT against the previous week.
Post the second price cut, Shagang Steel is now paying RMB 2200/MT (USD 311) for HMS (6-10 mm thickness), inclusive of 13% VAT, delivering to headquarters works situated in Zhangjiagang north of Shanghai in China.
India: Indian scrap market remained silent this week with no buying activities were witnessed. Assessment for Shredded scrap to India from North America and Europe is being reported at USD 265-270/MT CFR Nhava Sheva, up by USD 25/MT against last week. Offers from other sources remained limited due to Covid-19 lockdown. Notably, most bids were observed to be very low at USD 255/MT level for Shredded. On the other hand, no HMS offers were reported from any origin and neither any inquiries for the same were witnessed.
Pakistan: Imported scrap offers to Pakistan rose up sharply this week by around USD 25-30/MT on a weekly basis with few bookings got concluded. Meanwhile, many steel mills remain closed until further notice due to Covid'19 lockdown across the nation.SteelMint's assessment for Shredded 211 is being offered at USD 265/MT CFR Qasim, up by USD 30/MT against last week's closing. While some buyers were bidding USD 260/MT CFR levels for Shredded.
Bangladesh: Offers to Bangladesh for imported scrap witnessed an increase this week, with active bulk booking by the one of the major steelmaker based in Chittagong. SteelMint's assessment of Shredded scrap from North America was reported at USD 270-275/MT, up by USD 20/MT against last week, however, very less interest showed by the steel mills at these levels.
