Weekly round-up: Global ferrous scrap market reflects contrasting sentiments

The global ferrous scrap market showed mixed sentiments as Turkiye's imported scrap offers dropped in recent bookings amid high energy costs eating into the margins of steel mills. On the other hand, scrap prices at Japan's monthly Kanto tender jumped to a three-month high following which Tokyo Steel lifted scrap procurement prices. The scrap import market remained stagnant amid production cuts and dull steel demand due to floods in Pakistan. Indian mills booked low volumes as they waited for bulk cargo arrivals.

• Turkiye imported scrap prices drop on high energy costs: After going through a slowdown phase, Turkiye's imported scrap trades recovered as prices dropped significantly. This week, four-five deep-sea bulk cargoes were booked at low prices. However, due to tepid finished steel demand, market sentiments are still unfavourable. Steel mills remained cautious because of rising production costs. High energy costs and steel production cuts weighed on scrap import bids. SteelMint's assessment for US-origin HMS 1&2 (80:20) stands at $367/t CFR, down significantly by around $30/t w-o-w.
  
  
• Vietnam's imported scrap trade slows: Indicative offers for Japanese bulk H2 scrap were heard at $420-430/t CFR Vietnam. However, workable levels remained at $415/t CFR.
  
  
• Kanto tender bids climb to three-month high: Around 15,000 t of scrap was awarded and the average price for H2 scrap stood at around JPY 51,040/t ($357/t) FAS at Japan's Kanto scrap tender. Prices rose JPY 8,979/t ($62/t) from JPY 42,062/t ($294/t) in August. Notably, prices have moved up to a three-month high on increased bid prices, as per SteelMint data.
  SteelMint's assessment for Japanese H2 scrap export prices stands at JPY 50,000/t ($351/t) FOB, up JPY 500 ($4/t) w-o-w.
  
  
• Tokyo Steel lifts scrap procurement prices: Japan's major EAF steelmaker, Tokyo Steel, has increased scrap purchase prices this week. The company raised bids for H2 scrap by JPY 3,000/t ($21/t) for four of its plants, effective 10 September. After the adjustment, bid prices for H2 scrap were at JPY 51,000/t ($359/t) delivered to the Tahara and Utsunomiya plants.
  
  
• Bangladesh bulk market active, container silent: Major Bangladesh-based mills continued to remain largely passive with imported scrap bookings for yet another week. However, towards the weekend Bangladesh emerged as the major buyer in Japan's Kanto scrap export tender as buyers are showing interest in buying bulk material from Japan since July.
  In a recently-heard deal, a small bulk cargo from Singapore of around 8,500 t HMS 1&2 (80:20) was booked at $455/t CFR Chittagong. In another deal, a Venezuela-origin bulk cargo for HMS 1&2 (80:20) for around 15,000 t was heard booked at $450/t CFR. However, the deal remained unconfirmed till the time of publishing this assessment.
  The container market remained muted due to weak demand for finished steel, power outages in the country, and LC-related issues. Mills continue to remain cautious about booking new material. SteelMint's assessment for UK-origin shredded stands at $495/t CFR, down $7/t w-o-w.
  
  
• Floods, production cuts keep Pakistan market stagnant: Pakistan's imported scrap market remained sluggish in the last couple of weeks on limited demand, SteelMint learnt from sources. Subdued finished steel demand, high rebar inventory piling up at mills and slow drawdown of scrap inventories impacted scrap imports. Fresh offers for shredded scrap are at $470-475/t CFR, down by $10-15/t. However, around 1,000 t of shredded in containers was booked this week at $460/t CFR.
  SteelMint's assessment for shredded scrap in Pakistan stands at $463/t CFR Qasim, down by $18/t w-o-w.
  
  
• India's imported scrap prices fall further: After Turkish imported scrap deals were concluded through the week, buyers in India turned cautious about booking new cargoes. Prices for containerised shredded scrap fell sharply after a recently-concluded bulk deal. Buyers opted to wait and watch for clearer market trends. SteelMint's assessment for shredded scrap in India stands at $455-460/t CFR Nhava Sheva, down $20/t w-o-w.