Weekly: Global ferrous scrap market overview

Global scrap market observed slow activities this week. Turkish scrap market slowed down this, with a few bookings at decreased prices. Following the global downtrend, South Asian scrap offers also slightly inched down, while trades to India turned slow in comparison to last week, while Bangladesh witnessed improvement in buying activities. Japan's domestic scrap prices continued to increase, while export offers dropped slightly. Meanwhile, China's domestic scrap prices also inched down this week.

Turkey: This week very few trades were observed in contrast with last week as many steelmakers have booked sufficient cargo for July shipments. Imported scrap prices to Turkey moved down slightly in a recent deal. In the deal concluded, a major USA based scrap recycler sold a 32,000 t bulk cargo, comprising of 17,000 t of HMS 1&2 (80:20) at $ 267/t and 15,000 t of shredded at $ 277/t to a Mediterranean based steel mill.

SteelMint's assessment of USA origin HMS 1&2 (80:20) has come down by $3/t to $267/t CFR Turkey, against $270/t were reported in the last report.

Japan: Japan's Tokyo Steel announced a price hike in its scrap purchase price, with bids rising by JPY 500-1000/t ($ 5-9) at four of its works. After the price hike, the company is now paying JPY 25,000 /t ($ 215) for H2 scrap delivered at its Tahara plant in Central Japan.

Prices for Kyushu works and the Utsunomiya plant in the Kanto region risen to JPY 25,000/t and JPY 26,500/t respectively. While prices for H2 scrap delivered to Okayama plant and Takamatsu steel Centre have set at JPY 24,500/t and JPY 23,500/t respectively.

China: China's Shagang Jiangsu Steel group has observed a price cut this week for all grades of its domestic steel scrap procurement by RMB 30/MT ($ 4) after an increase in price was witnessed a week ago.

The purchase price for HMS (6-10 mm thickness) stands at RMB 2580/t ($ 365), inclusive of 13% VAT, delivered to headquarters works situated in Zhangjiagang North of Shanghai in China, in comparison with the last price revision to RMB 2610/t on 5th June'20.

South Korea: This week Korean steelmakers continued to book bulk scrap at an increased price level. In the latest deal, a Korean steelmaker booked a bulk cargo from a USA west coast, comprising HMS 1 at $ 282/t CFR Korea and cargo shipment is expected by early August'20.

Japanese H2 scrap offers which were reported at around JPY 27,000/t last week, have come down in the range of JPY 26,000-26,500 by the closing of the week.

India: Imported scrap offers to India moved down this week, on account of both, slight downtrend in international scrap market as well as recent fall in domestic billet prices (INR 1500/t) and finished steel sales dipping this week, these turning Indian buyers cautious. This witnessed little buying activity except for the South region.

SteelMint's assessment for Shredded scrap from Europe and North America stand at $ 282-285/t CFR Nhava Sheva, down by at least $5-6/t in comparison to last week, however, very few Shredded deals have concluded throughout this month, with most buyers not finding the prevailing levels viable and instead interested in HMS and other lower grades.

In the South region, few Tamil Nadu buyers concluded HMS 1&2 (80:20) deals at around, $ 260-262/t CFR from Australian origin, with a Chennai based mill concluding 800 t at these price levels this week. Trade sources confided that offers to Chennai are around $ 260-263/t CFR levels. Few deals of LMS bundles to Chennai buyers were concluded at around 243/t CFR basis.

HMS 1&2 (80:20) offers to Nhava Sheva from UK origins, are currently being offered at around $255/t levels, while few suppliers are even ready to conclude at $ 252-253/t level amid low interest from buyers. HMS 1&2 (80:20) from West Africa stood at around $ 243-245/t CFR Nhava Sheva, and around $ 250/t CFR Goa.

Bangladesh: Imported scrap offers to Bangladesh remained stable with few trades were observed this week. SteelMint's assessment of Shredded scrap in containers from Europe and North America remains at $300/t CFR Chittagong, while a few bookings for Shredded from UK and South Europe were observed at around $300/t levels, some offers also remain at around $300-302/t level. In bulk from the USA, Shredded offers are around $300-305/t CFR, with buyers bidding around $ 295-296/t CFR levels.

Meanwhile, 10,000 t of Japanese bushelling scrap was booked to a Chittagong based steelmaker, at $ 303/t CFR Chittagong.

Pakistan: This week, few transactions were concluded in Karachi and Punjab region, while the offers were high earlier in the week which slightly moved down later in the week. Shredded 211 scrap, which was being sold at 288-290/t CFR till earlier this week, with offers mostly at $290 levels, has come down to $ 285/t CFR Qasim level from UK/Europe origin by the closing of the week.

The domestic steel prices witnessed no major change, however, scrap prices slightly uptick on tight availability.