Weekly: Global ferrous scrap market overview
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Global scrap prices continued to increase this week. Turkish steel mills have actively resumed scrap bookings after Eid holidays with prices increasing to over six-months high. Imported scrap offers to South Asian countries have increased simultaneously, many Japanese bulk scrap cargoes have booked by Bangladeshi steel mills for late Oct and early Nov'20 deliveries at increased prices.
Turkey: Turkish buyers are active in the market after a small gap of Eid-holidays. Imported scrap prices continued to rise and stepped in the range of $280. In a recently concluded deal, a Mediterranean region based steelmaker has booked 27,000 t of bulk cargo from a USA based scrap supplier. The cargo consisting of 18,000 t of HMS (90:10) at $288/t CFR, 3,000 t of shredded at $ 290/t CFR, while 6,000 t of bonus (P&S) at $295/t CFR turkey level.
In another deal reported, a Russian A3 scrap bulk cargo has booked by Turkish steelmaker at a $284/t CFR Turkey basis.
SteelMint's assessment of USA origin HMS 1&2 (80:20) scrap now stands at $285/t CFR Turkey, rising by $8/t against last week's closing.
Japan: Tokyo Steel has increased its bid for scrap purchase price twice this week, increasing by JPY 500/t in each price adjustment. 1st revision was done on 5th Aug, only for Utsunomiya plant whereas, 2nd price assessment made for three of its factories (effective from today).
After the second hike, the company is now paying JPY 23,000/t ($ 217) for H2 scrap delivered to Tahara plant, JPY 24,000/t ($ 227) for Kyushu works and JPY 23,500/t ($ 222) for the Utsunomiya works in Kanto region.
South Korea: Japanese scrap export offers continued to increase this week. SteelMint's assessment for H2 scrap export stands in the range of JPY 25,000-26,000/t FoB basis, up by JPY 750/t against last week. Kanto Tetsugen's monthly scrap export tender is scheduled on 19th Aug '20, due to the upcoming summer holidays this month till mid-Aug '20, sources shared. Trading activities are likely to slow down in Japan ahead holidays, sources added.
India: Imported scrap offers to India have moved up further this week by around $10, following Turkish uptrend. Major Indian stainless steel producer has booked 4,000 t of shredded at $316/t CFR Nhava Sheva level.
SteelMint's assessment for shredded 211 from UK/Europe stands at around $315/t CFR Nhava Sheva level, increasing by $5-10/t against last week's closing.
HMS 1 & 2 (80:20) scrap from the UK is being offered at around $282-285/t CFR Nhava Sheva. Australian origin premium HMS 1&2 (80:20) being quoted in the range of $295-300/t CFR level.
Pakistan: Imported scrap offers to Pakistan, increased on a weekly basis and post-Eid-holidays. Pakistani scrap buyers and steelmakers are now rigid with their buying price idea, whereas it is expected by suppliers to increase the buyers' bid price. However, some trades of containerized shredded were reported recently at $308-310/t CFR Qasim. Fresh offers now stand at around $315/t, CFR.
SteelMint's assessment for Shredded 211 scrap from UK/Europe stands at $315/t CFR Qasim, up by $2/t against opening of the week, while increasing by $7/t against the closing of the last week.
Bangladesh: This week, imported scrap offers to Bangladesh have increased significantly, however, buyers have raised their inquiries for bulk scrap cargoes. Few Bangladeshi mills are actively bidding for bulk cargoes for Sept '20 shipments. Many Japanese bulk scrap cargoes have booked by Bangladeshi steel mills for late Oct and early Nov'20 deliveries at increased prices.
SteelMint's assessment for Shredded 211 scrap from UK/Europe and Australia stands at $325/t CFR Chittagong, up by $10/t against the middle of the week, while increasing by $25/t against the closing of the last week.
