Weekly: Global ferrous scrap market overview

Global ferrous scrap prices rebounded this week on availability concerns. With nearly ten deep-sea scrap cargo bookings being heard, mills remained active in restocking. Following this price in South Asian markets also increased and a bulk scrap booking being reported by Bangladesh mill. Domestic prices in China also strengthened.

• Ten deep-sea scrap bookings booked by Turkish mills - Turkish buyers continued to book bulk scrap cargoes from different origins for late Nov-early Dec'20 shipments. Buyers and steelmakers consider that it's better to replenish their scrap inventory before the winter holidays and nearly ten bookings were heard by SteelMint this week. Some upside was still possible in the short term owing to an increase in scrap prices. SteelMint's assessment for USA origin HMS 1&2 (80:20) stands at $293/t CFR Turkey, up by $2/t by the closing of the week and $5/t by the opening of the last week.
  
  
• Imported scrap prices in India up by $5-10 w-o-w - Lower scrap generation and collection is the major issue behind price uptrend. Availability of scrap still looked under risk from the new restrictions to contain the spread of COVID in Europe. SteelMint's assessment for Shredded scrap in containers of UK origin stands at $323/t CFR Nhava Sheva, up $5/t w-o-w. Also, there is a sharp hike in sponge prices as inquiries in India will remain supported. The price for domestic sponge iron (CDRI) stood at INR 22,500/t exw Raipur, up by INR 600 w-o-w.
  
  
• Pakistan imported scrap price near two months high - Imported scrap trades in Pakistan remained active with prices close to two-month high level. Major steel mills are actively booking their slots for Jan'21 arrivals as low scrap collection rate amid the second wave of COVID-19 pandemic and restocking ahead winters. SteelMint's assessment for imported Shredded 211 scrap in containers from UK/Europe stands at $325/t CFR Qasim, up by $8/t as compared to last week.
  
  
• Bangladesh mill books bulk US scrap cargo -Bangladesh based steel mill has booked US origin bulk scrap cargo recently in the absence of Japanese offers. They booked cargo comprises 32,000 t of mixed scrap grades and average booking price stands at around $320-322/t CFR Chittagong for Nov'20 shipments. There are hardly any firm offers for bulk cargoes from Japan due to stronger domestic buying by Japanese mills. SteelMint's assessment of containerized shredded 211 scrap from UK/Europe origins stands at $338/t CFR Chittagong, up $8/t w-o-w.
  
  
• Tokyo Steel kept domestic scrap prices stable - Japan's prominent steel manufacturer -Tokyo Steel did not make any price revision this week, as the company has revised its domestic scrap purchase price twice last week for two of its plants- Okayama and Takamatsu steel centre, increasing by JPY 1,500/t. Currently, the company is paying JPY 27,000/t ($257) for Okayama plant and JPY 26,000/t ($248) for Takamatsu steel plant.
  
  
• South Korean mill booked scrap cargo -South Korean steelmaker has booked higher grade scrap around 20,000 t of Japanese shindachi and shredded at JPY 33,000/t and JPY 32,500/t CFR basis respectively. Another giant Hyundai Steel remained silent since last week and did not make any bid for Japanese scrap. The company has put its last bid price at JPY 26,000/t for H2 grade scrap on 15th Oct'20. Japanese scrap export prices to South Korea have increased gradually w-o-w. However, Korean buyers have already refilled their stock when the prices were at favorable levels towards the beginning of the month.
  SteelMint's assessment for Japanese scrap export stands at JPY 27,500/t FoB Japan, up by JPY 500/t w-o-w.
  
  
• Shagang Steel raised scrap purchase price by RMB 50 ($7) -Shagang group hike its scrap purchase price by RMB 50/t ($7) for all grades, effective on (26th Oct'20). The price for HMS (6-10 mm) currently assessed at RMB 2,740/t ($409), inclusive of 13% VAT, delivered to headquarters works at Zhangjiagang North of Shanghai in China. Due to limited scrap resources, steel mills have increased the scrap purchase price to replenish inventories.