Weekly: Global Ferrous Scrap Market Overview
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Global scrap market witnessed an uptrend in all major markets this week. Turkish mills made 10-11 bulk cargoes, from Baltic, Benelux and USA origins at incrementally increasing prices just before the Eid break. Consequently, offers to the South Asian region too moved up, with some demand finally being witnessed by Indian buyers. Japan's Tokyo steel raised its domestic scrap purchase price after 5 months.
Turkey: Just before the upcoming Eid celebrations till mid of next week, Turkish mills went on a buying spree for imported scrap, booking another 6 bulk cargoes confirmed yesterday, in addition to the 5 bulk cargoes booked earlier this week, as steelmakers wanted to secure the June end shipments this break.
Among the latest bookings, 4 Baltic region recyclers (from Latvia, Lithuania, Sweden and St Petersburg) sold mixed grade cargoes to 4 Steel mills in Western Marmara, Eastern Marmara and Aegean region, with HMS 1&2 (80:20) price in the said bookings being USD 252.5/MT, USD 250/MT, USD 250/MT and USD 247/MT CFR Turkey respectively.
Additionally, a Benelux origin mixed cargo was sold to the same Aegean region steel mill with HMS 1&2 (80:20) at USD 246.5/MT CFR, while another Polish origin cargo was reported to with HMS 1&2 (80:20) at 247/MT CFR.
SteelMint's assessment for USA origin HMS 1&2 (80:20) stands at USD 254/MT CFR Turkey, stable against yesterday's report, while up by USD 10/MT in comparison to last week closing. Assessment for European origin stands at USD 247/MT CFR Turkey.
Japan: Japan's Tokyo Steel announced a hike in its scrap purchase price for the first time since mid of Dec'19, with bids rising by a sharp JPY 1000/MT (USD 9) at all of its five works this week, on improving local sentiment following the strengthening export market.
After the said price hike, the company is now paying JPY 19,500 /MT (USD 181) for H2 scrap delivered at the Tahara plant in the central region and Utsunomiya works located in the Kanto region, while for Okayama plant and Kyushu works in the western region new price set at JPY 18,500 /MT (USD 172).
China: China's Shagang Jiangsu Steel group kept its domestic steel scrap procurement price unchanged this week. Last week scrap purchase prices rose sharply by a total of RMB 130/ MT. The purchase price for HMS (6-10 mm thickness) still stands at RMB 2560/MT (USD 361), inclusive of 13% VAT, delivering to headquarters works situated in Zhangjiagang North of Shanghai in China.
India: Inquiries for imported scrap by Indian buyers finally witnessed quite an improvement this week as mills open gradually, after remaining silent for almost 2 months now. Although very few trades were witnessed, with limited global offers in the market, on account of upcoming holidays.
SteelMint's assessment for containerized Shredded 211 to India from UK/Europe and North America stands at USD 277/MT CFR Nhava Sheva. Most offers currently stand in the range of USD 275-280/MT CFR, with demand from buyers at around USD 275/MT level.
HMS 1&2 (90:10) from Australia was sold at USD 250/MT CFR. Offers for Australian origin HMS stand between USD 240-250/MT CFR as per quality. HMS 1&2 (80:20) offers to the UK were observed at around USD 245-247/MT CFR on low availability in Europe.
South African origin HMS 1 offers were reported at USD 250/MT CFR Nhava Sheva and USD 256-257/MT CFR Goa. West African origin HMS 1&2 (80:20) was offered to Goa at USD 235/MT CFR Goa, while buyers in Goa bid at USD 225-228/MT CFR for the same.
Pakistan: Pakistani steel industry observed a slight increase in trades this week prior to the Eid festival. Many buyers have made bookings for late June shipments. On the other hand, domestic market prices still remaining high due to a shortage of finished steel in the local market.
Shredded 211 in containers from UK/Europe were offered in the range of USD 275-278/MT CFR Qasim, while a few UK based yards offered prices at a premium level of USD 280/MT CFR.
Bangladesh: Imported scrap offers to Bangladesh remained slow this week as offers have slightly improved on a weekly basis. Trades of containerized HMS scrap have marginally improved against last week with few HMS deals observed.
SteelMint's assessment for containerized Shredded 211 scrap from European and North American origin was offered in the range of USD 288-290/MT CFR Chittagong, however, no trades were concluded in this price range. Few buyers were witnessed bidding at USD 278-279/MT CFR for Shredded in containers.
Few trades of HMS 1&2 (80:20) were recorded at USD 250/MT CFR Chittagong, from Brazil origin, while offers from other origins stood at USD 256-258/MT CFR for HMS 1&2 (80:20).
