Weekly: Global ferrous scrap market overview

Trades in the global scrap market remained dull this week as Turkish buyers remained away from booking deep sea cargoes. Following the Turkish price trend, imported scrap prices for south Asian markets like Pakistan and India observed a downtrend by the closing of this week. Whereas, Bangladesh imported bulk scrap trades have increased over the past few weeks. However, Japanese scrap prices increased sharply, both in domestic and in export market following a sharp increase in Kanto tender bids. Also, China's Shagang steel raised its domestic scrap procurement prices on tight availability.

Turkey: This week, imported scrap trades to Turkey slowed down due to continued weak demand in domestic and export finish long steel market. Few short-sea bulk cargoes getting booked earlier in the week, witnessing Turkish mills are either bidding at considerably lower prices or remaining out of the market for fresh bookings on active Aug end shipment deals in July.

Among the latest bookings, Turkish mills have booked Russian A3 scrap at $281/t and HMS 1&2 (80:20) at $ 271/t CFR basis.

SteelMint's assessment of USA origin HMS 1&2 (80:20) scrap to Turkey stood at $283/t CFR Turkey, down by $2/t against closing of the last week.

Japan: Japan's Tokyo steel announced a price hike twice this week, by JPY 1000/t ($9) each time for all of its five works. The company is now paying JPY 25,000/t for H2 scrap delivered to Tahara and Okayama works and JPY 25,500/t to Utsunomiya works in the Kanto region.

A total of 22,000 t of Japanese H2 scrap was sold at an average price of JPY 27,216/t ($258) FAS, a one-year high, at Kanto Tetsugen - Japan's monthly ferrous scrap export tender- which had concluded on 19th Aug '20. Kanto bid prices have surged to 1-year high since Sep '19 when the tender result was concluded at JPY 24,849/t FAS basis, as per data maintained with SteelMint.

China: Shagang Jiangsu Steel group announced a price hike for all grades for domestic steel scrap procurement this week by RMB 20/t ($3). The purchase price of HMS (6-10 mm) thickness has now moved up to RMB 2,720/t ($392), inclusive of 13% VAT delivering to headquarters works at Zhangjiagang North of Shanghai in China.

South Korea: South Korea's major steelmaker - Hyundai Steel presented bids for around 100,000 t Japanese scrap purchase on 19th Aug '20. Hyundai Steel had put up a bid for Japanese H2 scrap at JPY 27,000/t ($ 256) FoB Japan. However, the deal was concluded for just 30,000 t of Japanese H2 scrap in response to bids put. Out of this, 6,000 t scrap was booked at around JPY 27,500/t FoB basis.

Hyundai Steel has entered the Japanese market after a gap of a few weeks and for the time being, the company had booked Russian scrap, due to high Japanese scrap offers.

Another steel manufacturing giant, POSCO Steel has also settled for 10,000 t of Japanese HS grade scrap, and bid was at JPY 32,500/t CFR basis.

India: Indian imported scrap trades slowed down as mills showed less interest in buying at inflated prices following a decline in finished steel prices of secondary mills. The Ganesha festival and upcoming Muharram festivals could be another factor for slowing down trade activities.

Recently, India's major stainless steel producer has booked 4,000 t M S turning from Europe in containers at $274/t, CFR Nhava Sheva. Another deal, Australian HMS 1&2 (80:20) in containers was sold at $300/t CFR basis.

SteelMint's assessment for shredded 211 from UK/Europe in containers stood at around $313/t CFR Nhava Sheva, down by $2 in comparison to last week's closing.

UK/Europe HMS (80:20) offers were reported at $285/t CFR Nhava Sheva HMS 1&2 (80:20) from Middle East is being offered at around $298-300/t CFR Nhava Sheva depending on the quality of the material. Dubai HMS (80:20) offers were heard at $295-300/t CFR Nhava Sheva. HMS 1&2 (80:20) from South African origin being reported at $290-295/t CFR to Nhava Sheva.

Pakistan: Pakistani imported scrap trade activities remained slow due to dull finished steel demand and lower scrap bids resulted in few scrap trades this week. Offers to Pakistan dipped slightly this week after six weeks of successive hikes. Monsoon season also slowed the construction activities this month. However, no significant deals have been reported this week. Whereas, buyers' bid price remained at $305/t CFR level.

SteelMint's assessment for Shredded 211 scrap from UK/Europe stands at $310/t CFR Qasim, down by $5 against the last week's opening. Fresh offers for Shredded reported at $308-310/t CFR from Europe.

Bangladesh: Imported bulk scrap trades to Bangladesh have increased over the past couple of weeks. Some major mills have actively booked bulk scrap cargoes from US WC and Japan.

SteelMint's assessment of containerized shredded 211 scrap from European origin stood at $325/t CFR Chittagong. Indicative bids were at $315-317/t CFR level. Imported scrap prices to Bangladesh may come down in the coming days, shared by source.