Weekly: Global ferrous scrap market overview

Global scrap market witnessed a price downtrend this week. Turkish scrap market decreased significantly w-o-w with only few deals concluded at lower price. Offers for South Asian countries too fell against last week's report. Japan's export prices crashed in the latest deals, pulling down domestic prices too in the Kanto region, while China's domestic market slightly uptick before the Drogon boat festival this week.

Turkey: Turkish steelmaker returned to the market for imported scrap after a gap of a week, with a couple of deep-sea cargo bookings were reported from USA and Benelux origin on decreased prices, although buying is still on slower side. In the latest deals, a Western Marmara region based steelmaker has booked a 40,000 t mixed grade cargo from a Belgium based recycler, comprising of 20,000 t HMS 1&2 (75:25) and 20,000 t bonus grade at an average price of $252.5/t CFR Turkey/

SteelMint's assessment for USA origin HMS 1&2 (80:20) at $ 258/t CFR Turkey, down by $8-9/t against last week's sale price. Assessment from Europe origin stands at $251-252/t CFR Turkey.

Japan: Japan's Tokyo Steel announced price cuts twice this week in its scrap purchase price by JPY 500-1000/t ($ 5-9) at Utsunomiya works, while keeping bids unchanged for the remaining four plants. After the second price cut, the company is now paying JPY 25,000 /t ($ 233) for H2 scrap delivered to its Utsunomiya plant in the Kanto region. The fall in Japanese export prices may lead to drop in the domestic purchase price.

China: China's Shagang Jiangsu Steel group has observed a price hike this week for all grades of its domestic steel scrap procurement by RMB 50/MT ($ 7) against price cut was made in the last week, as prices rose up due to increased pre-holiday bookings earlier in the week.

The purchase price for HMS (6-10 mm thickness) stands at RMB 2630/t, 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 2580/t on 18th June'20.

South Korea: Imported scrap price to South Korea for Japanese scrap significantly fell by around JPY 4000/t ($37) to JPY 23,500/t this week with few major bookings reported at this level.

This week mostly Japanese H2 was booked at a low level price, while no deals were reported from USA and Russia. In the latest deal concluded, Hyundai steel has booked a bulk cargo for Japanese H2 scrap at JPY 23,500/t ($ 220) FoB Japan basis, which is the lowest price in almost 3 months.

India: Imported scrap offers to India moved down on a weekly basis, following the global price falling trend, with only a few small quantity deals getting concluded recently. Buyers expect prices to move down further, while slow finished steel sales too have kept steelmakers away from active bookings.

SteelMint's assessment for shredded scrap from Europe stands at $278/t CFR Nhava Sheva, down by $3-4/t from last week. Few buyers had earlier concluded some deals at $278/t CFR level, while few offers at $276-277/t CFR level were also witnessed by week closing.

HMS 1&2 (80:20) 8% of ci gi sold at $240/t level for around 500-600 t from Dubai, HMS 1&2 from UK is being offered at $245-250/t CFR basis, while buyers are bidding at a very low level at around $ 230-235/t CFR Nhava Sheva. HMS 1&2 (80:20) from West Africa remained stable at around $ 245/t CFR Goa against last week, buyers bid at $ 240/t CFR.

Bangladesh: This week imported scrap prices to Bangladesh moved down by $10/t after remained unchanged for almost three weeks. SteelMint's assessment for shredded scrap in containers from UK/ Europe and Canada being offered at $ 290/t CFR Chittagong, while buyers bid stands quite lower at $280/t CFR. On the other hand, Brazilian origin shredded was quoted at $270/t CFR, with some activity. In containers, HMS 1&2 (80:20) offers were recorded at $260/t from Brazil and $270/t from Australia, while buyers bids $5-10/t lower respectively.

Few bulk bookings were witnessed from USA and Japan earlier in the week. From the USA west coast, shredded scrap in bulk offered at around $280/t CFR, after a major mill from Chittagong booked a 37k t bulk cargo of mixed grade earlier this week at $280/t and 275/t for shredded and HMS respectively CFR.

Pakistan: Imported scrap offers to Pakistan declined sharply on a weekly basis, following global price trends. While limited bookings were witnessed this week. SteelMint's assessment for shredded 211 from UK/Europe and North America stands at $278-280/t CFR Qasim level, considerably dropping by around $10/t against the opening of last week when offers were recorded at around $ 290/t, which had later moved down to $285/t CFR level by last week closing. Shredded offers range between $277-279/t from USA and $279-281/t CFR from the UK, with few deals closed in this range.