Weekly round-up: Global ferrous scrap market exhibits mixed trends

The global ferrous scrap market witnessed mixed trends this week. Scrap bookings into Turkey remained supported in fresh deals. Domestic scrap purchase prices of Shagang and Tokyo Steel increased, whereas trading activity remained slow in the South Asian imported scrap market during the ongoing Ramadan month on cost-effective domestic substitutes.

• Turkish mills resume deep sea bookings: Imported scrap trade in Turkey resumed this week, with a few deals being concluded from the USA. Mills returned to the market with fresh transactions after remaining silent last week. Suppliers, in turn, kept their offers high and are trying to avoid giving discounts.
  
  

SteelMint's assessment of US-origin HMS 1&2 (80:20) is at $653/tonne (t) CFR Turkey, largely unchanged w-o-w.

• Shagang Steel raises prices: China's Shagang Group raised its scrap procurement prices by RMB 50/t ($8/t), effective 7 Apr'22. The hike is intended to secure supplies and stall deliveries from declining further. Current prices of HMS (6-10mm) are at RMB 4,020/t ($631/t) delivered to headquarters, including 13% VAT.
  
  
• Hyundai Steel's bids for Japanese scrap remain stable: Hyundai Steel has kept bid prices unchanged as against 31 March. Bids for H2 scrap are now at JPY 66,000/t ($534/t), while those for Shindachibara are at JPY 73,500/t ($594/t) FOB. Amidst bulk scrap bookings from the USA and a conservative outlook on new contracts, Hyundai kept bids unchanged.
  
  

Furthermore, the company booked US cargo containing 45,000 t of HMS 1 scrap at $625/t CFR. The material is expected to arrive in South Korea in May, SteelMint learnt from sources.

• Vietnam's import market witnesses few trades: Amidst bid-offer disparities, Vietnam's imported scrap market saw lower trade volumes. However, steel mills are trying to take advantage of the depreciation in the Japanese currency and are booking small quantities. Fresh offers for bulk Japanese H2 are being quoted at $620-625/t CFR levels, a drop of $5-7/t w-o-w.
  
  
• Tokyo Steel hikes scrap buy price by $4/t: Tokyo Steel has raised scrap purchase prices by JPY 500/t this week. The company increased bids by $4/t for all its five facilities. Post revision, the company's bid price for H2 scrap stands at JPY 65,000/t ($530/t) delivered to Tahara and Utsunomiya, effective 5 April.
  
  

• Japan's scrap export market awaits Kanto Tender: The weakening national currency and cut-down in freight rates attracted buyers. Prominent buyers like South Korea and Vietnam kept their bids unchanged. Buyers are waiting for the Kanto tender to get a clearer direction of the market.
  
  

SteelMint's assessment for Japanese H2 scrap export prices stands at JPY 66,000/t FOB, stable w-o-w.

• Pakistan's import market silent during Ramadan: Pakistan's scrap import market witnessed slow trading amidst reduced working hours during Ramadan, steep currency depreciation and political instability. Fresh shredded scrap import offers from the UK are at $660/t CFR Port Qasim, up $10/t w-o-w.
  
  

Meantime, buyers and steel mills are targeting domestic scrap purchases due to cost factor. Also, mills have reduced steel production as demand has fallen during Ramadan. The gap between domestic and imported scrap prices has widened to around PKR 10,000/t ($50/t).

• Bangladesh's scrap trades remain limited after bulk bookings from the USA: Bangladesh's imported scrap trade has slowed down with the beginning of the Ramadan month. However, mills continued to book imported scrap in small quantities owing to high offers. Steelmakers and buyers have opted to wait and watch for clear market directions.
  
  

The major mills have booked three bulk scrap cargoes from the USA for May shipments. The booking price was heard at $680-685/t CFR Chittagong for HMS and shredded material. Offers are now at $670-675/t CFR Chittagong.

Fresh offers for containerised shredded scrap are at $680-685/t CFR, mostly stable w-o-w.

• Indian imports market silent on cheaper domestic substitutes: India's imported scrap market remained quiet for another week. The fall in domestic prices led to a slowdown in imports. Mills have already restocked the material from regional markets when the offers were low and are now engaged in needs-based bookings.
  
  

Fresh offers for UK-origin shredded in containers are at $660/t CFR Nhava Sheva.