Weekly: Global ferrous scrap market overview
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- Tokyo Steel raised scrap purchase price twice this week
- China's Shagang Steel raised scrap purchase price on tighter domestic supplies
- Turkey's imported scrap prices rise by $5-7/t w-o-w
- Turkey's imported scrap prices rise in recent bookings - Imported scrap price was largely stable in a deal concluded recently. Four deals were heard after a silence since the beginning of this week. SteelMint's assessment for US-origin HMS 1&2 (80:20) now stands at $463/t CFR Turkey, slightly up by $7/t w-o-w.
- Japan's Tokyo Steel raises scrap purchase price twice this week - Japan's leading EAF mill - Tokyo Steel has hiked its scrap purchase price twice this week, for all plants, by up to JPY 1,500/t ($14). The company is now paying JPY 42,500/t ($392) for both H2 scrap delivered at Tahara works in Central Japan and Utsunomiya plant in Kanto region. Japanese domestic scrap prices are rising on the back of a price rally in export offers.
- South Korean mills lift bids for Japanese scrap - South Korean mill - Hyundai Steel has increased its bid price for Japanese scrap by up to JPY 4,000/t. The bid for H2 is now set at JPY 43,500/t ($401) FoB level, up by JPY 3,000/t ($28) against the last bid which was on 18th Feb'21. Japanese suppliers have shown less interest in reducing their offers, as they are already trading at high levels with buyers based in Southeast Asia. SteelMint's assessment for Japanese H2 scrap export stands at JPY 45,000/t ($417) FoB, up by JPY 2,000/t ($19) w-o-w.
- Vietnam mills booked bulk cargoes at increased offers - Vietnamese buyers remain active in the Japanese market. The cargo booked comprises 3,000 t of Japanese H2 at around $470/t CFR Vietnam. Prices for Japanese H2 have moved up by $15/t as against the beginning of this week. Hike in freight rates and tighter material availability has pushed offers up further. Despite high offers, Vietnamese scrap buyers remain active in the market due to China's increased inquiries for other semi-finished products.
Market awaits Japan's monthly Kanto Tetsugen scrap export tender which is scheduled on 10th Mar'21, to get a clearer outlook on price. - India's imported scrap trades remain slow as buyers hold back - Imported scrap trades in India remained slow for yet another week. Buyers continued to remain on side-lines and preferred to go with domestic substitutes of domestic scrap & sponge iron. There is no demand from Indian buyers of imported scrap at ongoing offers. SteelMint's assessment for containerised shredded of UK/US origin remains unchanged at $470/t CFR Nhava Sheva level. However, no trades were reported.
- Buyers turn cautious in Bangladesh on higher bulk offers - Bulk Japanese scrap offers for Bangladesh have increased by $30-35/t w-o-w. Currently, the H2 offers are at around $475-485/t CFR Chittagong. One Japanese bulk cargo is heard to have been booked by a Bangladesh steelmaker at around $475/t CFR levels.
Following a hike in global scrap prices, containerised imported scrap offers have surged, resulting in limited trades. On the other hand, due to slow domestic demand, market insiders are doubtful on price acceptance from buyers. SteelMint's assessment for shredded in container now stands at $487/t CFR Chittagong, stable this week. - Pakistan imported scrap trades slow down - Imported scrap prices in Pakistan remained range-bound this week on limited trading activities. Major mills concluded few deals, but smaller mills kept themselves away from booking imported scrap actively. SteelMint's assessment for the UK/EU origin containerised shredded stands still at $468/t CFR levels, stable w-o-w.
- China's Shagang Steel hikes scrap purchase price by $15 - Shagang Steel has raised scrap purchase price on 2nd Mar'21 by RMB 100/t ($15) for all grades. Currently, price for HMS (6-10 mm) stands at RMB 3,390/t ($521), inclusive of 13% VAT, delivered to headquarters. Scrap deliveries to Chinese based mills have remained on the lower side after CNY holidays due to difficulty in scrap collection, resulting in tighter domestic availability.
