Weekly: Global Ferrous Scrap Market Overview
...
Global scrap market observed mixed trend throughout the week. Imported scrap prices to Turkey fell again in the week closing, while Japanese scrap offers to South Korea moved up in deals concluded this week. South Asian scrap market resumes their steelmaking operations, however, very few trades were observed. China's domestic scrap purchase price observed the fourth successive hike this week.
Turkey: Imported scrap prices to Turkey have remained volatile over the last week, with several recent deep-sea cargo bookings witnessing fluctuation in prices.
In the latest deal concluded, a Belgium supplier sold a 32,000 MT mixed cargo to a Marmara region-based steelmaker, comprising of 20,000 MT of HMS 1&2 (80:20) at USD 238/MT CFR and 6,000 MT each of Shredded and P&S scrap at USD 243/MT and USD 248/MT CFR Turkey respectively, for June Shipment.
SteelMint's assessment for USA origin HMS 1&2 (80:20) to Turkey, stands at USD 245/MT CFR Turkey. This is down by USD 7/MT against the previous booking two days ago, while in comparison the previous report earlier in the week, the assessment is lower by just USD 4/MT. On a W-o-W basis, against the closing of last week, the assessment has now come down by USD 8/MT.
China: China's Shagang Jiangsu Steel group has announced another price hike for all grades of domestic steel scrap procurement by a further RMB 80/MT (USD 11), after almost six days since last week's sharp price hike.
The purchase price for HMS (6-10 mm thickness) has now stands at RMB 2560/MT (USD 361), inclusive of 13% VAT, delivering to headquarters works situated in Zhangjiagang North of Shanghai in China, in comparison with the last revision to RMB 2,480/MT on 6th May'20. Prior to this, the same level of the purchase price for the HMS (6-10 mm) was recorded in the later part of Mar'20, just before the two months lockdown in Hubei province was lifted.
South Korea: Imported scrap offers to South Korea continued to move up for yet another week after many steel mills resume their operation with lockdown guidelines. In the latest contract reported, major steelmaker Dongkuk Steel has booked a bulk cargo of around 30,000 MT from an Australian yard of a US scrap recycler, at USD 255/MT CFR for HMS 1 (scrap grade) and the cargo is expected to berth at the North port of Incheon by July'20. The purchase price of Russian A3 scrap and Japanese H2 scrap on arrival is reported to be at around USD 239/MT and USD 234/MT respectively.
After the Kanto export tender's result earlier this week witnessed bids increasing by JPY 1820/MT (USD 17) to JPY 22,476/MT (USD 209), export offers of Japanese scrap were expected to rise further.
India: Scrap export to India has been banned from UAE, as per the latest press release published by UAE government. UAE mainly shipped HMS scrap to Murdra, Nhava Sheva and Kandla port, and the steelmakers in these regions will be the most impacted.
SteelMint's assessment for Shredded scrap from Europe and North America stands at USD 270/MT CFR Nhava Sheva, although no firm bids are still available in the market, and most buyers admitted to not having returned in the market for new deals as yet.
Bangladesh: Imported scrap offers to Bangladesh witnessed an uptrend this week, however with no major trades getting concluded. Currently, steelmaking operations have reopened with low level production.
Assessment for Shredded scrap in containers stands at USD 290/MT CFR Chittagong, with most offers in the range of USD 288-290/MT CFR now, a surge of over USD 12-13/MT against the price level in the earlier half of last week. But very limited inquiries from the buyers' side were witnessed.
Pakistan: This week, many steel mills have resumed now in Punjab and Sindh province after getting permitted by the central government. However, many other steelmakers have decided to resume their work after the Ramadan holidays.
Imported scrap bookings turned below average this week. SteelMint's assessment for containerized Shredded scrap from UK/Europe is being offered at USD 272-273/MT CFR Qasim. Recently, Shredded via containers have been booked at around USD 271-273/MT CFR. By the closing of the week, however, few offers has been observed at 270/MT level too, on volatility in market.
