Weekly: Global ferrous scrap market overview
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- Turkish imported scrap prices hit eight years high
- Imported scrap prices in South Asia up by $30 w-o-w
- China's new steel scrap standards yet to be announced in Jan'21
- Japan's Tokyo Steel announced eighth price hike for scrap purchase in Dec
- Turkish imported scrap prices climbed eight years high - Turkish trade activities and imported scrap prices jumped eight years high, as steelmakers have actively booked bulk scrap cargoes for Feb'21 shipments. Meanwhile, trading activities in the local rebar market is sluggish. The rise was due to Turkish steel mills' continuous steel sales and the positive outlook of the overseas steel market and manufacturing industry. SteelMint's assessment for USA origin HMS 1&2 (80:20) stands at $450/t CFR Turkey, up by $55/t w-o-w.
- Indian imported scrap offers rise, buyers remain cautious - India's imported scrap offers followed global trends registering a total hike of $50/t so far in Dec'20, though limited deals have been reported at these levels. SteelMint's assessment for Shredded scrap in containers of UK/EU origin currently stands at $438/t CFR Nhava Sheva. A prominent Indian steelmaker has booked around 2,000 t of MS shredded scrap in containers at $440/t CFR Mundra and around 2,500 t of a busheling bundle at $475/t CFR Vizag basis, sources have reported to SteelMint. Imported scrap prices in India have risen by around $30 w-o-w. However, buyers have turned cautious on sharp price rally.
- Higher bulk demand increases Bangladesh imported scrap prices - Stronger global demand for scrap shipments in bulk has led to a sharp rise in deep-sea imported scrap prices to Bangladesh over the past week, increased freight charges kept buyers on wait and watch mood. SteelMint's assessment of containerized shredded 211 scrap from UK/Europe origins stands at $445/t CFR Chittagong, up by $20/t w-o-w.
- Pakistan buyers resist high imported scrap offers - Limited deals were reported at high offers as smaller mills turned cautious for placing fresh bookings. Notably, only bigger mills are actively buying imported scrap at the moment. Imported scrap offers have rallied further following the global uptrend but local mills have raised their offers amid a hike in imported scrap prices, however, finished steel prices need to increase further to justify such high scrap prices. SteelMint's assessment for imported shredded 211 scrap in containers from UK/Europe stands at $438/t CFR Qasim, Limited tonnages were sold at $435/t CFR levels, SteelMint learned.
- Japanese scrap prices rise in recent bookings for Vietnam - Vietnam based steel mills have been booked two Japanese scrap cargoes this week. The cargo has booked for 3,000 t of Japanese H2 scrap at $440/t CFR Vietnam, while another cargo comprises of 5,000 t at $435/t CFR Vietnam basis, sources have reported SteelMint. Prices for Japanese H2 have moved up by $15-20 as against the beginning of this week. Despite high imported scrap prices, domestic production and sales have increased on a monthly basis.
- Tokyo Steel announces three price hikes in a week - Japan's leading EAF mill- Tokyo Steel has raised bids for scrap purchase aggressively throughout this week upto JPY 1,600/t ($15) for all works. Currently, company is paying JPY 40,000/t ($387) H2-scrap delivered at Tahara, JPY 39,500/t ($382) for Okayama, JPY 37,000/t ($358) for Kyushu, Utsunomiya and Takamatsu works. This is company's eight price hike made this month. The company has raised bids for H2 scrap at its Utsunomiya plant by a total of JPY 8,000/t so far in Dec'20.
- South Korean steel mills book over 90,000 t of Japanese scrap - South Korean mills have booked Japanese bulk scrap cargo earlier this week, on bid presented by Hyundai Steel towards the closing of last week. Hyundai Steel has booked around 60,000 t for high-grade scrap. Whereas, Dongkuk Steel has concluded a deal for 32,000 t of Japanese H1 and H2. SteelMint's assessment for Japanese H2 stands at JPY 42,000/t FoB level, up by JPY 3,500/t w-o-w.
- Chinese new steel scrap standards to be announced on 1st Jan'21 - China's National Public Service Platform for Standards Information confirms that the much-awaited introduction of new classification standards for the country's steel scrap sector will take place on 1st Jan'21. China will be lifting the restrictions on steel scrap imports, the impact on the domestic steel market or on iron ore prices will be so small as to be ignored, Mysteel Global reported recently.
