Weekly: Global Ferrous Scrap Market Overview
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Imported Scrap market showed mixed trends this week for major markets. Turkey witnessed numerous bookings since the middle of the week at increasing prices. China's Shagang steel increased its domestic scrap purchase price. Japanese imported scrap offers to south Korea move up while offers to South Asian market inch down in this, however, no trades were reported.
Turkey: Imported scrap prices to Turkey move up in numerous deals concluded this week, as some larger mills looked to secured material for June shipment, at a time when scrap availability is still tight.
In the latest deal, a Western Marmara region based steelmaker booked a total of 30,000 MT of bulk cargo from a Baltic origin based scrap supplier, comprising of HMS 1&2 (80:20) at USD 252/MT CFR Turkey and bonus at USD 262/MT, CFR Turkey.
SteelMint's assessment for USA origin HMS 1&2 (80:20) stands at USD 254/MT CFR Turkey, up by 10-12/MT as compare to the previous week when it stood at USD 243/MT, CFR.
China: China's Shagang Jiangsu Steel group announced a sharp price hike this week for all major grades of domestic steel scrap procurement, with scrap purchase prices rising by RMB 150/ MT against the previous week, amid Supply tightness and increased demand resulted in hike in the scrap purchase price.
Post the price cut, Shagang Steel is now paying 2480/MT (USD 350) for HMS (6-10 mm thickness), inclusive of 13% VAT, delivering to headquarters works situated in Zhangjiagang north of Shanghai in China.
South Korea: Imported scrap offers to South Korea have risen significantly this week with two confirmed deals concluded by the South Korean steelmakers as they have booked around 12,000 MT of Japanese H2 scrap in the range of JPY 21,000-22,500/MT FoB basis.
On the other hand, offers for Russian A3 scrap were reported at USD 330/MT, CFR and few offers for USA based HMS 1&2 (80:20) reported at USA 250/MT CFR.
India: Many steel mills have started their work with the limited workforce, however currently no demand was observed for finished steel products. On the other hand, steelmakers are still facing difficulty in clearing the cargoes of imported scrap from ports. After the 2nd notice from shipping lines, buyers had begun the process of clearance, however, due to a shortage of drivers and labour, the process is going very slowly.
Assessment for Shredded 211 scrap to India from Europe and North America stands at USD 252-255/MT CFR Nhava Sheva, down by USD 15-20/MT over one week. Few offers for UAE origin premium HMS 1 (no ci gi) were witnessed at just USD 240/MT CFR, due to no strong buying interest.
Bangladesh: Imported scrap offers to Bangladesh have continued to move down for yet another week due to downtrend at global level and low domestic demand. SteelMint's reliable sources reported that steel sales dropped by around 80% for most mills in April '20 and only 20% of regular sales were recorded in the month.
Assessment for shredded 211 scrap to Bangladesh from Europe and North America were reported at USD 272-275/MT CFR Chittagong. A couple of bookings were reported at USD 272/MT CFR for shredded, while most offers remain around USD 275/MT CFR, down from USD 283-285/MT in the week before. However, by closing of the week, offers were looking to move up on global rebound.
Pakistan: Pakistan imported scrap trades were quite slow this week as global offers were very volatile. Only a few deals were reported through the week till yesterday.
Assessment for Shredded 211 scrap was around 265/MT CFR Qasim, earlier in the week, with a few deals closed at this level till Tuesday. Shredded offers moved down further to USD 255-260/MT very breifly by Thursday, post which, it rebounded again to USD 270/MT level as of week closing today after Turkish upturn. Some bookings of HMS 1 was also reported at USD 245/MT CFR earlier this week.
