Weekly: Global ferrous scrap market overview
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Global scrap market witnessed a surge in prices this week on improving overall demand. Turkey continued its active bookings at increasing prices. Few bulk bookings were observed to Pakistan and India on firm prices. Container offers to all South Asian markets witnessed a surge, while trades yet to pick up. Japan's domestic and export offers have increased for yet another week. Meanwhile, China's domestic scrap purchase price rose against last week.
Turkey: Numerous bookings for imported scrap were witnessed this week at successively higher prices, with sentiments looking bullish while the prices have now shot up to 3 month high level.
In the latest deal, a US recycler sold a cargo to a major Aegean region-based steelmaker, consisting of HMS 1&2 (80:20) at USD 259.50/MT CFR Turkey for July shipment.
SteelMint's assessment for USA origin HMS 1&2 (80:20) now stands at USD 260/MT CFR Turkey, up by USD 6/MT in comparison to last week's closing.
Japan: This week Japan's Tokyo Steel announced three consecutive hikes in its scrap purchase price, with bids rising by JPY 500-1000/MT (USD 5-9) each time at all of its five works. After the third price hike, the company is now paying JPY 23,500/MT (USD 215) for H2 scrap delivered at its Tahara plant in Central Japan.
While prices for H2 scrap delivery to Okayama plant and Takamatsu steel Centre have now set at JPY 21,000/MT (USD 192) and JPY 20,000/MT (USD 183) respectively. Prices for Kyushu works and the Utsunomiya plant in the Kanto region now risen to JPY 22,500/MT (USD 206) and JPY 23,000/MT (USD 211) respectively.
China: China's Shagang Jiangsu Steel group has observed a price hike this week for all grades of domestic steel scrap procurement by RMB 80/MT (USD 11) after a small decrease in price was witnessed last week. The purchase price for HMS (6-10 mm thickness) has now stood at RMB 2610/MT (USD 368), inclusive of 13% VAT, delivering to headquarters works situated in Zhangjiagang North of Shanghai in China, in comparison with the last revision to Yuan 2530/MT (USD 353) on 28th May'20.
South Korea: This week domestic buyers moved towards Russian A3 grade scrap, as two major steelmakers namely Korea Steel and YK steel have booked a cargo each, for Russian A3 grade at USD 250/MT and USD 251/MT CFR South Korea, respectively.
Whereas, Offers for Japanese H2 scrap in bulk stood at JPY 25,000-25,500/MT FoB Japan, while on CFR basis the H2 scrap offers are around JPY 27,000/MT, CFR basis.
India: Imported scrap market moved up gradually in India this week, as a bulk booking to a west India based mill was reported this week, where a USA origin mixed cargo with 20,000 MT Shredded and 10,000 HMS scrap were booked at an average price of USD 280/MT CFR Kandla.
SteelMint's assessment for Shredded 211 scrap from North America and Europe origins to India, is being offered in the range of USD 286-290/MT CFR Nhava Sheva, up by USD 10/MT against last week. However, most buyers inquiring about HMS grades instead of shredded offers, due to high offers.
HMS 1 from South Africa is being recorded at USD 275/MT CFR Nhava Sheva, up by USD 8-10/MT against last week. HMS 1&2 (80:20) from UK is being offered at USD 265/MT CFR. Other offers included West African HMS 1&2 (80:20) to Goa at around USD 245/MT CFR, while few offers for European origin were recorded at around USD 236-240/MT CFR.
Bangladesh: Imported scrap offers to Bangladesh surged up this week, after remaining similar level for almost three weeks. On low finished steel demand, steel mills continuing their production at minimum capacity.
SteelMint's assessment for Shredded 211 scrap offered at USD 296-300/MT CFR Chittagong, with most offers being closer towards USD 300/MT mark. No major containerized Shredded bookings were reported this week.
Pakistan: This week Pakistan buyers are active in bulk bookings after a gap of 2 years. Mughal Steel - booked a 32,000 MT cargo from a prominent USA based recycler, comprising Shredded scrap in entirety, at a price of USD 282.5/MT CFR Qasim.
Meanwhile, post-Eid celebration steel mills resume again with SteelMint's assessment for Shredded 211 scrap from UK/Europe stood at USD 288/MT CFR Qasim, up by USD 6-8/MT against last week's report. The majority of the fresh offers are in the range of USD 286-289/MT CFR. A few premium yards in the UK are demanding up to USD 290/MT for Shredded.
