Weekly round-up: Ferrous scrap prices firm as Turkish buyers remain active

Global scrap prices have remained high as a result of active buying by Turkiye. With continuous bookings this week, Turkish buyers pushed the market higher. Ahead of the General Budget the Indian market remained less active, with small parcel bookings seen as buyers were in a wait-and-see mode. Amid the financial crisis and problems with LC openings, Pakistani and Bangladeshi buyers remained silent. After a more than month, Hyundai Steel resumed bids for Japanese scrap, with Japanese ferrous scrap export prices remaining high w-o-w on increased inquiries.

Turkish buyers active: Throughout the week, Turkish ferrous scrap buyers and steelmakers continued to conduct business as usual. This week saw an increase in bulk cargo bookings from the US and Europe. Prices too continued to rise. Furthermore, negotiations between suppliers and buyers are ongoing, while steel producers raised their domestic scrap purchase and rebar prices this week.

SteelMint's daily assessment for HMS 1&2 (80:20) from the US stood at $427/t CFR Turkiye, up significantly by $16/t w-o-w.

Bangladesh market muted: The imported scrap market in Bangladesh remained quiet this week, with no active transactions concluded. Imported scrap offers remained mostly stable due to limited trade activity.

Fresh offers for US-origin bulk HMS are heard at $460/t CFR Chittagong, up by over $10/t w-o-w. Bulk Japanese H2 indicative levels were at $455/t, unchanged w-o-w.

Steelmakers and traders are awaiting new Letters of Credit (LCs) for previously booked raw material which is already in the pipeline.

SteelMint's assessment for shredded scrap in containers stood at $473/t CFR, up $2/t w-o-w.

Financial crisis hits Pakistan: The steel industry in Pakistan is in crisis as the currency downfall has prevented the State Bank of Pakistan from opening letters of credit (LCs), resulting in the closure of numerous steel businesses and widespread job losses.

For another week, the imported scrap market remained quiet. There were no trade activities and few offers.

SteelMint's assessment for imported shredded scrap in containers is $465/t CFR, up $5-6/t w-o-w.

India buyers book small parcels: Indian scrap buyers continued their small quantity bookings for yet another week. Market participants were waiting for the Budget announced this week on 1 February. However, no major changes were declared related to scrap duty. Further, market participants opted to wait and watch the direction of prices as Turkish buyers continued to book at increased prices. Notably, prices for suppliers are not viable in India over Turkiye.

SteelMint's daily assessment for UK-origin shredded stood at $460/t CFR Nhava Sheva, moving up by $5/t w-o-w.

Vietnamese ferrous scrap market resumes after holidays: After a week-long Tet holiday, Vietnam's imported scrap market reopened. Imported scrap prices are likely to remain high as suppliers anticipate increased trade with the opening of the Chinese market. Furthermore, a few trade channels reported that material shortage in major supply countries such as the United States may keep scrap prices firm. Some of them began quoting higher to their major exporting destinations.

Indicative offers for Japanese bulk H2 scrap surged to $440-445/t, moving up significantly by $15/t w-o-w. However, tradable prices remain at $435/t CFR Vietnam.

Meanwhile, bulk offers for US-origin HMS 1&2 (80:20) were heard at $450-455/t CFR, slightly up by $5/t w-o-w.

Hyundai bid for Japanese scrap resumes: South Korean steel major, Hyundai Steel, has increased import prices of Japanese scrap by JPY 3,000/t($23/t) on 2 Feb'23 after more than a month's gap. After revision, the company's bids for H2 scrap stand at JPY 52,000/t ($405/t), and those for HS are at JPY 56,000/t ($436/t) FOB. The hike in bids was followed by a recent increase in FAS prices in Japan.

Japanese ferrous scrap export price increase w-o-w: In response to increased inquiries, Japanese suppliers have increased their scrap export offers. Market participants are mostly waiting for price direction ahead of the Kanto Tetsugen scrap export tender, which is set to end on 9th February 2023.

Market participants expect the Kanto Tender to conclude at increased prices compared to JPY 50,932/t recorded in January.

SteelMint's assessment for Japanese H2 scrap export prices stands at JPY 52,000-53,000/t ($405-413/t) FOB, up by JPY 1,000/t w-o-w.