Weekly: Global ferrous scrap market overview

Global scrap market continued to surge upward as buyers are very active in the market. Turkey again achieving higher prices through the week. Following the Turkish price trend, imported scrap prices for South Asian market like Pakistan and India observed an uptick by the closing of this week. Whereas, Bangladesh imported scrap offers remained stable against last week, however, trades in bulk were reported throughout the week. Japanese scrap export prices to South Korea remain stable and many deals were concluded this week, while domestic scrap purchase price again moved up this week in the Kanto region.

Turkey: This week, Turkish imported scrap prices have hit over four months high as similar price levels were seen in early Mar '20. Around 8-9 bulk cargo bookings were observed from USA and Baltic origin since middle of the week, witnessing active bookings at increased prices before the Eid holidays.

Among the latest bookings, A Baltic region-based recycling yard sold bulk cargo to steelmaker located in Mediterranean region, Turkey, containing HMS 1&2 (80:20) at $279/t CFR and bonus at $289/t, CFR Turkey. The cargo has booked for Aug '20 shipment.

SteelMint's assessment of USA origin HMS 1&2 (80:20) scrap to Turkey stood at $ 278/t CFR Turkey, up by $2/t against Thursday and around $ 8/t higher than closing of the 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 the other four regions. The company is now paying JPY 22,500/t ($ 214) for H2 scrap delivered to Utsunomiya works in the Kanto region.

South Korea: South Korea's major steel manufacturer POSCO hiked its bid price for Japanese higher grade scrap- shindachi and shredded scrap at JPY 29,000/t CFR Korea, which is equivalent to around JPY 26,500/t ($ 254) FoB Japan basis, putting Japanese H2 scrap at JPY 24,500-25,000/t FoB Japan. The bids have increased by JPY 500/t in comparison to last bids presented by POSCO at JPY 24,000/t FoB basis on 23rd July '20.

Another major South Korean steel mill, Dongkuk Steel has booked a Japanese H2 scrap bulk cargo. The company's bid for H2 scrap was reported at JPY 27,000/t CFR basis on arrival prices could be considered at JPY 25,000/t FoB level.

On the other hand, Hyundai Steel's previously booked Russian bulk cargo which has arrived at the North Port of Korea. The unloading of the ship has been suspended due to the occurrence of COVID-19 to a crew of Russian ship, as per reports.

India: Imported scrap offers to India moved up considerably over a week, however less trades were witnessed. Most of the buyers opted to stay away from the market considering fluctuations in finished steel prices.

Recently, a major Indian steel mill booked a containerized Shredded scrap of 4,000 t from Europe at $ 302/t CFR Nhava Sheva and 4,000 t at $ 313/t CFR Vizag basis, while the cargo shipment expected in Aug '20. Also, USA origin 1,000 t of shredded have booked at $ 299/t CFR.

SteelMint's assessment for containerized Shredded 211 from UK/Europe surged to $ 305-307/t CFR Nhava Sheva, rising by around $15/t in comparison to last week's closing.

UK/Europe HMS (80:20) offers were reported at $275-280/t CFR Nhava Sheva HMS 1&2 (80:20) from UK and Middle East is being offered at around $270-275/t CFR Chennai depending on the quality of the material. UK HMS (80:20) offers were heard at $275-280/t CFR Nhava Sheva. HMS 1&2 (80:20) from West African origin being reported at $262-265/t CFR to Goa.

Pakistan: Pakistani imported scrap offers observed fluctuations in this week. At the beginning of the week, the offers remained firm as compared to last week's closing. Domestic steel market too remained slow. Whereas, domestic market participants expect trades to pick up after holidays.

Some trades were witnessed in last two days, with shredded 211 scrap deals getting concluded at $303-305/t CFR Qasim from UK/Europe.

SteelMint's assessment for Shredded 211 scrap from UK/Europe stands at $308/t CFR Qasim by the closing of this week, up by around $8/t against the opening of the week. Fresh offers for Shredded reported at $307-310/t CFR from Europe.

Bangladesh: Imported scrap price to Bangladesh in containers remained stable whereas, offers in bulk increased this week. Also, locally available shipyard scrap remained a preference over the imported scrap due to cost-effectiveness.

Recently, a major Bangladeshi steel mill booked a 10,000 t of Japanese bulk scrap cargo at around $282/t CFR Chittagong basis. Another steelmaker concluded a deal, in which Australia/New Zealand origin good quality of HMS 1&2 (80:20) in containers getting booked in the range of $280-285/t CFR Chittagong level.

SteelMint's assessment for containerized shredded 211 scrap from UK/ Europe origins stands in the range of $300/t CFR Chittagong before the Eid holidays. Fresh offers for bulk now stands at $305-310/t CFR Chittagong.