Weekly round-up: Global ferrous scrap market positive amidst trade tensions

Global ferrous scrap market showed a positive trend this week as Turkish buyers made aggressive bookings throughout the week, strengthening sentiments in South Asian countries. However, Japanese scrap offers for South Korea remained high.

• Turkey's imported scrap prices hit record high: Imported scrap prices into Turkey hit record highs amidst the ongoing Russian-Ukraine trade tightness. Additionally, supply became difficult through the Black Sea. However, around six-seven deals were concluded at increased offers, this week.
  
  

SteelMint's assessment of US-origin HMS 1 & 2 (80:20) prices increased to a multi-year high of $625/t CFR Turkey, surging by $112/t on week.

• Japanese scrap trade yet to rebound: Japanese scrap export prices showed some signs of weakness this week. However, as the outlook is bullish, a price rebound is expected. South Korean mills lowered their purchase bids. But, market players believe, buyers have to rely on Japan as currently cargoes from Russian counterparts are limited.
  
  

SteelMint's assessment for Japanese H2 scrap export prices stood at JPY 57,000/t ($493/t) FOB levels, unchanged w-o-w.

• Hyundai Steel lowers bids for Japanese scrap: South Korea's Hyundai Steel lowered bids for Japanese scrap on 3 Mar'22 by JPY 500/t ($4/t) compared to the last bid on 25 Feb'22, sources informed SteelMint. Bids for H2 grade are now at JPY 56,500/t ($488/t), while for HS grade are at JPY 62,000/t ($536/t) FOB. Increasing offers from suppliers and less demand resulted in lowering of bids.
  
  

• Vietnam's scrap imports dip: Imported scrap trade in Vietnam continued to be slow throughout the week. Buyers stopped making fresh bookings currently due to high offers and are awaiting clarity on offers. Mills preferred sourcing domestic scrap amidst higher imported offers.
  
  

The Covid-19-induced global supply chain crisis already put huge pressure on shipping routes. The ongoing Russia-Ukraine war further increased the uncertainities.

• Pakistan's imported scrap prices at all-time high: Imported scrap prices into Pakistan bounced back to all-time highs amidst the ongoing trade tensions between Russia and Ukraine. However, subdued finished steel demand kept imported scrap trade volumes under pressure.
  
  

Around 4,500 t of UK/EU-origin shredded scrap in containers was booked at $575-580/t CFR Qasim recently.

SteelMint's assessment for UK/EU-origin shredded scrap stood at $595/t CFR Port Qasim, up by $40/t w-o-w.

• Bangladesh's scrap prices rise: Containerised scrap trade in Bangladesh remained active for another week, sources informed SteelMint. On the other hand, considering the continued hike in imported scrap offers, buyers remained less interested in booking bulk cargoes. Meanwhile, Japanese materials were still at a higher level, but no firm offers were heard.
  
  

SteelMint's daily assessment for UK-origin shredded scrap in containers was recorded at $620/t CFR Chittagong, an increase of $30/t on weekly basis.

• India scrap imports prices escalate: Imported scrap market in India continued to remain supported this week, despite witnessing a price rally tracking global movement on the back of supply concerns from CIS nations.
  
  

SteelMint's daily assessment of West Africa-origin shredded scrap stood at $550-555/t CFR Nhava Sheva, up sharply by over $50/t w-o-w.