Weekly: Global ferrous scrap market overview

The global scrap prices shot up after Turkish imported scrap prices hit $300/t CFR mark for HMS. Japanese scrap export prices remained unchanged over the week with suppliers waiting for Kanto tender outcome scheduled on 9th Sept '20, while South Korean mills remained less active in booking cargoes. China's Shagang steel hiked domestic scrap procurement prices on tight supplies.

Turkey imported scrap prices up by over $10 - This week, imported scrap trades to Turkey increased sharply with various deep-sea bulk cargo bookings. The key reason for the increase is the uptrend in the Turkish scrap market was tight supplies.

In the latest deal concluded, a USA based scrap recycling yard sold a bulk cargo to a steelmaker located in Aegean region. The cargo consisting of HMS 1&2 (80:20) at $300/t, shredded at $305/t, and bonus (P&S) at around $310/t CFR Turkey level. SteelMint's assessment of USA origin HMS 1&2 (80:20) scrap to Turkey stands at $300/t CFR Turkey, up by over $10/t on w-o-w basis.

Japan's Tokyo Steel kept scrap prices unchanged - Tokyo Steel kept its domestic steel scrap purchase price unchanged this week. As per last week's price adjustment, currently, the company is paying JPY 25,500/t, and JPY 26,000/t for H2 scrap delivered to Tahara plant in central Japan Utsunomiya works in the Kanto region respectively.

Japanese scrap export offers stable, market awaits Kanto results - Japanese H2 grade offers remained firm this week at JPY 28,000/t FoB basis. Korea based few major steel mills, including POSCO have presented a bid this week for HS grade scrap at around JPY 32,000-32,500/t CFR level. However, Japanese suppliers disagreed on bid price and have asked more than JPY 34,000/t CFR level. Japanese scrap suppliers are waiting for the results of Kanto Tetsugen tender which is scheduled on 09 Sept'20

China's Shagang Steel hikes scrap purchase price by $7 - This week, Shagang Jiangsu Steel group has hiked prices for all grades for domestic steel scrap procurement by RMB 50/t ($7). High iron ore prices and peak season demand resulted in a hike in scrap price. The purchase price of HMS (6-10 mm) thickness has now climbed up to RMB 2,800/t ($409), inclusive of 13% VAT, delivering to headquarters works at Zhangjiagang North of Shanghai in China.

Indian imported scrap prices hit over one year high - Imported scrap prices to India have rallied further on a weekly basis, following Turkish price trend. Imported scrap prices in India have hit over one-year high. SteelMint's assessment for Shredded scrap in containers stands at $327/t CFR Nhava Sheva, however, few offers were reported at $330/t CFR levels as well.

In the latest deal, 4,500 t of MS shredded from different origins (UK, US & Australia) has been booked in containers at around $320/t CFR Nhava Sheva early this week, 3,250 t of MS turning at around $288/t CFR, while 3,500 t of busheling bundles at around $340/t CFR basis.

Dubai origin HMS 1 and South African HMS (90:10) are being offered at around $310/t CFR, whereas Dubai origin HMS (80:20) is being quoted in the range of $295-300/t CFR.

Pakistan's scrap trades resumed trades post Muharram holidays - Pakistani imported scrap trade activities were not much active this week after Muharram/Ashura holidays as offers to Pakistan have increased sharply against last week and prices have climbed to almost eight-months high. While some customers have decided to wait and watch until it is feasible to buy and sell the finished products at current domestic steel prices, it is not feasible to pay such high prices for scrap.

SteelMint's assessment for Shredded 211 scrap from UK/Europe stands at $322/t CFR Qasim, increased sharply by $12/t w-o-w.

Bangladesh mills continue booking bulk scrap cargoes - Imported scrap prices have increased this week, following a Turkish scrap price uptrend. Consumers are slightly confused at this moment when domestic rebar prices observed continuous fluctuations in the market.

In the recent bulk deal concluded, a major steelmaker has booked bulk cargo for 20,000 t Brazilian PNS at around $323/t CFR level.

SteelMint's assessment of containerized shredded 211 scrap from European origin stood at $337/t CFR Chittagong. Few suppliers have currently quoted for containerized shredded in the range of $335-340/t for Uk/Europe origin.