Weekly: Global ferrous scrap market overview

Global scrap market moved up for another successive week as buyers are active in the market. Many deals are getting concluded this week by Turkish buyers throughout the week at an increased price. Following the Turkish price trend, imported scrap prices for South Asian market have also increased. Japan's domestic scrap purchase price uptick this week in the Kanto region, further South Korean steelmakers bid for Japanese scrap but deals were not reported due to wide gap between buyers' and suppliers' price idea. China's Shagang steel had increased its domestic scrap procurement price this week on increased demand.

Turkey: 8-9 bulk bookings form US and Baltic origin was witnessed this week since last Saturday, after witnessing slow buying activities during the last few week. Turkish steelmakers are now actively looking for fresh deep-sea cargoes from USA and Europe.

Among the latest bookings, a Russian scrap supplier sold a bulk cargo of 25000 t to an Aegean region-based still mill at $261.50 /t CFR basis, and the cargo shipment would be in the second half of Aug '20.

Steelmint's assessment of USA origin HMS 1&2 (80:20) scrap to Turkey now stands at $263/t CFR/t, up by $5/t against Monday, and around $9/t higher than closing of last week.

Japan: This week Japan's Tokyo steel announced price hike by JPY 500/t ($ 5) at Utsunomiya plant in Kanto region, while keeping prices unchanged for other four regions. The company is now paying JPY 22,000/t ($ 206) for H2 scrap delivered to Utsunomiya works in the Kanto region.

The country's Kansai-tender concluded its scrap export tender this week. The winning bid was awarded a total of 5,000 t of Japanese H2 at an average price of JPY 23,110/t ($216), FAS, in comparison to JPY 26,010/t in the last tender of Jun'20, down by JPY 2,900/t ($27) m-o-m, putting Japanese H2 scrap export prices at around JPY 24,100/t FoB Japan basis.

China: Jiangsu Shagang Group has announced a price hike this week for all the grades of domestic scrap procurement by RMB 50/t ($ 7). The purchase price of HMS (6-10 mm) thickness has moved up to RMB 2700/t ($ 386), inclusive of 13% VAT delivering to headquarters works at Zhangjiagang North of Shanghai in China, in comparison with RMB 2650/t on 28th June'20.

South Korea: Hyundai steel presented bid for Japanese scrap earlier this week and cut its purchase bids by JPY 500/t. The company has set Japanese H2 scrap at JPY 22,000/t ($ 206) FoB Japan, while H1: H2 (50:50) from Japan was bid at 22,500 JPY /t. Bids for higher grades were also cut by similar margins, with prices for Japanese HS, Shredded, and Shindachi set at JPY 24,500/t FoB Japan.

Followed by this, other Korean major players such as Daehan Steel and YK steel had also bid for Japanese H2 in the middle of the week at JPY 22,500/t FoB Japan basis which has been completely rejected by the Japanese suppliers and the workable price is at least JPY 24000/t FoB Japan.

India: Imported scrap offers to India continued to move up this week as well, as the global market strengthened since last week's closing. More inquiries for HMS and lower grades were observed, with some bookings getting concluded in South and West regions.

SteelMint's assessment for containerized Shredded 211 from Europe and North America now stands at $290/t CFR Nhava Sheva, further up by $5/t in comparison to last week closing. Last bookings for Shredded scrap were concluded from USA and UK origin were concluded at $285/t CFR.

HMS 1&2 (80:20) offers from UK were reported at $255-260/t CFR Nhava Sheva. HMS 1&2 (80:20) from West Africa was sold to Goa based mills at $247-248/t CFR Goa for 21t loading and offers for the same with 23t loading stood at $250/t CFR.

Brazil origin HMS (1&2) was sold to Chennai region mills in the range of $261-265/t CFR Chennai this week, with around 3,000 t material booked since Monday. In spite of the ongoing export ban, HMS 1&2 (ci gi 8%) offers from UAE were heard at around $270/t CFR Nhava Sheva.

Pakistan: Imported scrap price to Pakistan moved up in latest deals concluded amid active buying throughout this week. However, by the end of the week buyers showed some resistance against further rise in global offers. Whereas, domestic scrap prices remained stable against steel prices which was declined this week.

Around 6,000-7,000 t of Shredded 211 scrap was booked in last couple of days between $289-292/t CFR Qasim from UK/Europe, with latest bookings being reported at $292/t CFR. Fresh-offers for Shredded reported at $293-294/t CFR from UK and $290/t CFR from Europe.

SteelMint's assessment for Shredded 211 scrap from UK/Europe stands at $292/t CFR Qasim, up by around $7/t in comparison to $285/t CFR levels in the closing of last week.

Bangladesh: Imported scrap price to Bangladesh in containers moved up significantly against last week, however buying in containers by mid-size steelmakers remained slow for imported scrap while, domestic shipyard scrap and imported DRI available at a cheaper price.

SteelMint's assessment for containerized shredded 211 scrap from European origins stands at $300/t CFR Chittagong. No container route buyer has bid for Shredded above $290/t CFR in the last few weeks. HMS 1&2 (80:20) offers were reported at $265- 270/t and $280-282/t from Australia.
In bulk, offers for USA west coast cargoes to Bangladesh have increased to $276-280/t CFR Chittagong.

Local shipyard scrap prices are stable at BDT 26,000/t ex yard Chittagong, inclusive of all taxes.