Weekly: Global Ferrous Scrap Market Overview
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Global ferrous scrap market observed a decline in prices in all major markets. After observing aggressive bookings in the past couple of weeks, Turkish steel mills turned slow on deep-sea cargo bookings.
Turkey: In the last deal concluded in which a Black Sea region based Turkish steelmaker has booked a bulk vessel from a Baltic origin recycling yard with 32,000 MT of mixed cargo comprising of 16,000 MT of HMS 1&2 (80:20), 12,500 MT of Shredded scrap, 2,500 MT of Bonus grade and 1000 MT of Bushelling at an average price of USD 283/MT CFR Turkey for April shipment.
SteelMint's assessment for the USA origin scrap HMS 1&2 (80:20) stands at around USD 277-278/MT CFR Turkey, down by USD 2-3/MT against last week's report, while European assessment stands at USD 273/MT CFR Turkey.
Japan: Japan's Tokyo steel lowered its scrap purchase price twice this week. 1st price cut was announced on 03 Mar'20 by JPY 500/MT for its Kyushu & Utsunomiya works and the second price cut was announced on 06 Mar'20 for Kyushu works by JPY 500/MT.
After the second price cut, the company will pay JPY 18,500/MT (USD 175) for H2 scrap delivered to its Kyushu works in the western region. For H2 scrap delivered to Tahara plant in the central region, Utsunomiya works located in the Kanto region, Okayama plant and Takamatsu Steel Center the prices remain at JPY 20,500/MT (USD 194), JPY 19,500/MT (USD 186), JPY 19,000/ MT (USD 179) and JPY 18,000/MT (USD 170) levels respectively.
South Korea: Imported scrap offers to South Korea for Japanese H2 scrap has come down this week. Hyundai Steel booked a Japanese H2 scrap this week with a concluded price based on JPY 23,000/MT FoB (USD 218), however, the amount was not confirmed. The bid is lower by JPY 1000/MT against company's last bid
China: China's Shagang Jiangsu Steel group has announced another price cut for all major grades of domestic steel scrap procurement, by RMB 50/MT (USD 7). Post the said price cut, Shagang Steel is paying RMB 2,620/MT (USD 376) inclusive of 13% VAT for HMS (6-10 mm thickness) delivered to headquarters works situated in Zhangjiagang north of Shanghai in China, down by RMB 50/MT (USD 7) against the last revision to RMB 2,670/MT on 27th Feb'20.
India: Imported scrap offers to India witnessed a sharp fall this week by around USD 10/MT, with limited buying interest amid less demand and Holi holidays. Shredded 211 to India from USA and UK/Europe stood at USD 305-307/MT CFR Nhava Sheva, down by around USD 10/MT against last week's report. Offers for HMS 1& 2 (80:20) from UK and Australian origin is being offered at USD 280/MT CFR India and USD 285/MT respectively, down by USD 8-10/MT W-o-W, based on origin. UAE origin HMS 1 is being offered at USD 295-300/MT CFR, while HMS 1&2 from the same origin reported at USD 285/MT CFR, with limited bookings observed at these levels.
Bangladesh: Imported scrap trades to Bangladesh too moved down this week, with three major bulk bookings. A total of 94,000 MT of bulk scrap has been booked from US this week, along with a few Japanese cargoes at USD 297-298/MT CFR for Busheling.
US and UK/Europe origin Shredded scrap in containers is being offered at around USD 315-320/MT CFR Chittagong, down by USD 10-15/MT against last week. HMS 1 stood at around USD 297/MT CFR Chittagong from Australia, while HMS 1 is being offered in the range of USD 295-300/MT CFR. Brazilian material being reported at USD 300/MT CFR. HMS 1&2 (80:20) offers were reported in the range of USD 281-285/MT CFR from Australia and Europe.
Pakistan: Imported scrap offers to Pakistan have come down this week, after continuous uptrend for more than 3 weeks. SteelMint's assessment for containerized Shredded 211 scrap from UK/Europe was reported in the range of USD 308-313/MT CFR, moving down by USD 6-7/MT on a weekly basis. Few trades for Shredded from UK got concluded at USD 312/MT and from USA were reported at around USD 308/MT. However, towards the closing of the week, shredded offers were reported at USD 305/MT CFR. HMS 1 super (no ci gi) is being offered at USD 295/MT, down USD 10/MT over the last week.
