Weekly: Global ferrous scrap market overview

Global ferrous scrap trades remained dull towards the beginning of the week due to Japanese holidays and absence of Turkish mills. However, with Turkish mills resuming deep sea cargo bookings, market sentiments gained support. Prices in Japan, China and south-Asian countries also fell due to decline in bids.

• Turkish mills resume bulk scrap bookings: Imported scrap prices to Turkey have rebounded in the latest bulk cargo bookings concluded after a gap of almost two weeks. SteelMint's assessment for HMS 1&2 (80:20) from the USA stands at $299/t CFR Turkey.
  
  

• Japanese domestic scrap prices remain unchanged: Japan's leading EAF mini mill- Tokyo Steel has not revised its domestic scrap purchase price this week. Tokyo Steel is currently paying at JPY 27,000/t ($256) for H2 scrap delivered at its Tahara plant in Central Japan and JPY 26,000/t ($ 247) in Utsunomiya plant (Kanto region).
  
  
• Hyundai Steel slashed bids for Japanese scrap by $9.5: Hyundai Steel lowered bids for Japanese H2 scrap this week and bid price for H2 scrap was lowered by JPY 1,000/t ($9.5) as compared to the company's last bid presented two weeks ago. Notably, the company has booked around 62,000 t of Japanese scrap recently. The bulk cargo booked comprises of 30,000 t of shindachi, 20,000 t of HS and 12,000 t of shredded.
  
  

SteelMint's assessment for Japanese scrap export stands at JPY 27,500/t ($261) FoB Japan, decreasing significantly by JPY 1,000/t ($ 9.5) w-o-w.

• China's Shagang Steel lowered scrap purchase price twice this week: Eastern China's Shagang group - has reduced its domestic scrap purchase price twice this week by RMB 50/t ($7) for all grades each time. The purchase price of HMS (6-10 mm) thickness has declined to RMB 2,640/t ($387), inclusive of 13% VAT delivered to headquarters works at Zhangjiagang North of Shanghai in China.
  
  

After this round of price decline, it is expected that the price decline of scrap may slow down before the upcoming Chinese holidays which are scheduled in 1st week of Oct'20.

• Indian imported scrap trades subdued on weaker finished steel trades: Imported scrap prices to India have been corrected further this week. Comparatively less trades were reported this week due to softening market sentiments in secondary finished steel segment, sources reported to SteelMint. On the other side, sources believe that offers may remain at the higher side, due to strong domestic market sentiments in USA and high scrap yard costing, which are likely to keep the scrap prices high.
  
  

SteelMint's assessment for Shredded scrap in containers of UK origin stands at $312/t CFR Nhava Sheva, down by $6/t w-o-w. Suppliers' offers stand at around $310-320/t CFR levels.

• Pakistan's imported scrap trades improve: Pakistan's imported scrap prices have softened this week, however trades were relatively better than previous week, as per sources. SteelMint's assessment for Shredded 211 scrap in containers from UK/Europe stands at $310/t CFR Qasim, down by over $10 w-o-w.
  
  
• No bulk scrap bookings reported in Bangladesh: Imported scrap trades to Bangladesh have slowed down this week as buyers are expecting further price decline in the near term. Steel mills are relatively less active this week for bulk scrap bookings, sources reported SteelMint. USA suppliers are quoting around $325/t CFR Chittagong for bulk HMS (80:20) and seem that the suppliers are less interested in lower offers.
  
  

SteelMint's assessment of containerized shredded 211 scrap from UK/Europe origins fell by $10-15 w-o-w basis and currently stands at $325/t CFR Chittagong.