Weekly: Global ferrous scrap market overview
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Global ferrous scrap prices strengthened this week. Turkish import prices rose in recent deep sea scrap bookings. Following Turkish trend, prices in South Asian markets also picked up. South Korean mills booked Russian scrap cargo and Japanese domestic scrap prices increased in few regions.
- Turkish imported scrap prices rise in recent deals - Deep sea Turkish import scrap prices inched up as number of inquiries for Dec-Jan cargo shipments. Buyers are willing to pay a higher-level price for imported scrap to replenish their inventory, as the finished steel market is gaining momentum, though they have to pay high freight costs as well. SteelMint's assessment for USA origin HMS 1&2 (80:20) stands at $291/t CFR Turkey, up by $3/t w-o-w.
- Indian Import scrap prices climb to one month high - India imported shredded prices jump on improved demand. Tight scrap availability in yards and low collection rates have resulted in a hike in prices this week. SteelMint's assessment for Shredded scrap in containers of UK origin stands at $318/t CFR Nhava Sheva, up $8/t w-o-w.
- Pakistan imported scrap prices moved up on supply tightness - Imported offers to Pakistan have strengthened this week on lower collection scrap rates. Increased cases of COVID in European nations adversely affected scrap generation pushed scrap prices further. Imported scrap offers stood at $315/t earlier this week, up $5/t by the end of the week and currently stands at $320-322/t CFR Pakistan. SteelMint's assessment for imported Shredded 211 scrap in containers from UK/Europe stands at $317/t CFR Qasim, up $5/t w-o-w.
- Imported scrap offers for Bangladesh up, steel prices yet to improve - Imported scrap offers to Bangladesh increased over a week. UK bulk suppliers are less interested in reducing offers due to low scrap generation. Containerized scrap offers are mostly absent throughout this week on supply crunch and dull finished steel domestic market sentiments. SteelMint's assessment of containerized shredded 211 scrap from UK/Europe origins stands at $330/t CFR Chittagong, up $10/t w-o-w. However domestic rebar prices in Bangladesh are yet to see an uptick.
- Tokyo Steel raised domestic scrap purchase prices twice this week - Japan's leading EAF mini mill - Tokyo Steel has revised its domestic scrap purchase price twice this week for two plants by JPY 1500/t for Okayama and Takamatsu steel centre. After the price adjustment, the company is now paying JPY 27,000/t ($257) for Okayama plant and JPY 26,000/t ($248) for Takamatsu works. However, prices for other works including Tahara and Utsunomiya kept unchanged. The main focus was to reduce the gap between purchase price and domestic market price, mainly in Okayama plant which is located near Kyushu factory.
- South Korean mill booked Russian scrap cargo - Hyundai Steel had concluded a deal earlier this week, in which 20,000 t of Russian A3 grade scrap got booked at $281/t CFR Korea, sources have reported to SteelMint. The price has dipped by $22/t against the last Russian cargo booked at $303/t CFR basis on 18th Sep'20. Ferrous scrap export market remained less active this week. SteelMint's assessment for Japanese scrap export stands at JPY 27,000/t ($257) FoB Japan.
- China's Shagang group slashed scrap purchase price by RMB 30 ($4) - Eastern China's Shagang group cut its scrap purchase price by RMB 30/t ($4) for all grades on 19th Oct'20. The price for HMS (6-10 mm) stood at RMB 2,690/t ($402), inclusive of 13% VAT, delivered to headquarters works at Zhangjiagang North of Shanghai in China. If sources are to be believed, Shagang is likely to raise price by RMB 50/t ($7) for all grades from next week onwards.
