Weekly: Global Ferrous Scrap Market Overview
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This week, imported scrap markets all across the world moved down significantly as Covid-19 outbreak's escalation has significantly disrupted the European as well as South Asian market this week. Offers to Pakistan, India and Bangladesh moved down by USD 35-40/MT while Turkey witnessed buyers exiting the market in the latter half of the week. Japan's Tokyo steel and China's Shagang Steel lowered their scrap purchase price this week.
Turkey: Turkish imported scrap offers had fallen sharply in mid of the week in the latest deal from UK, post which, the prices dipped further to over lowest levels since Aug'16.
In the latest deal concluded, a premium grade scrap yard in UK sold 15,000 MT cargo to a Turkish steelmaker based in the Mediterranean region, comprising entirely of HMS 1&2 (80:20) at a price of USD 226/MT CFR Turkey, for April'20 Shipment.
With this booking, SteelMint's assessment in mid-week fell at USD 232/MT for USA origin HMS 1&2 (80:20) after which, due to no buyer inquiry, the offers dropped to below USD 225/MT level, for the first time after Aug'16.
Japan: Japan's Tokyo steel has lowered its scrap purchase price by JPY 500/MT (USD 5) at all its five works. After the said price cut, After the said price cut, the company will pay JPY 20,000 /MT (USD 184) for H2 scrap delivered at the Tahara plant in the central region, while for Okayama plant the price set at JPY 18500/MT (USD 170).
South Korea: Following the global price downtrend, Hyundai Steel cuts its bid this week for Japanese H2 scrap procurement to below 3 years low level. The bid price lowered to JPY 21,000/MT (USD 190), down by JPY 1000/MT (USD 9) as compared to JPY 22,000/MT (USD 196) FoB, bids presented two weeks ago.
China: China's Shagang Jiangsu Steel group has announced price cut twice this week for all major grades of domestic steel scrap procurement. 1st price cut was on 23rd Mar'20 by RMB 60/MT (USD 8 ) and second price cut on 26th Mar'20 by RMB 30/MT (USD 4).
Post the second price cut, Shagang Steel is now paying RMB 2,530/MT (USD 356) inclusive of 13% VAT for HMS (6-10 mm thickness) delivered to headquarters works situated in Zhangjiagang north of Shanghai in China.
India: Imported offers to India also plummeted by similar margins, with US origin Shredded scrap down to USD 240/MT CFR Nhava Sheva, in comparison to USD 276-280/MT last week. But offers remained quite limited with most suppliers mentioning slow incoming of scrap at yards and slow collection. This could be attributed to both, restrictions due to coronavirus, as well as sharply declined prices.
Although, with almost all secondary steel mills (major consumers of imported scrap) in India having closed their operations this week, and a limited few operating at bare-minimum capacity post the lock-down in the country, buying of imported scrap is expected to remain negligible in the coming few weeks.
Pakistan: Pakistan steel industry mostly shut down this week due to sever escalation in the coronavirus outbreak. Steelmint's assessment Shredded 211 offers to Pakistan from EU/UK origins were reported at around USD 240/MT CFR, down from USD 278/MT at last week's closing, with a few bookings observed at this price level, while some suppliers from north European region also offered at USD 235-240/MT CFR range. This is the lowest price level in 3.5 years, after Oct'16
Bangladesh: Bangladeshi scrap market remained silent for another week with buyers remain less interested in fresh bookings, while many major players have already booked at high volumes to restock their inventories.
Assessment for Shredded offers was quoted at USD 255/MT CFR from North America and Europe, with one booking in containers being reported at this level. HMS offers stood at around USD 240/MT on an average from various origins. While in the middle of the week, offers for HMS 1&2 (80:20) reported at USD 270/MT CFR Chittagong.
