Weekly round-up: Global ferrous scrap market remains positive; prices trend higher except in Japan

The global ferrous scrap market remained upbeat this week. The Turkish imported scrap market saw bookings continuing despite increasing energy prices. Key mills in South Korea returned to the market and booked Japanese and Russian scrap. Japanese sellers are waiting for the Kanto tender to conclude to get a clearer market direction, whereas domestic scrap prices are decreasing amid Yen-Dollar fluctuations.

The South Asian bulk scrap market, on the other hand, recovered after bulk deals were concluded to India and Bangladesh. Meanwhile, trades in the Pakistani market remained sluggish on weak finished steel demand.

• Turkiye's imported scrap bookings continue: Despite the continuous hike in energy prices, fresh round of deals from the US and EU concluded. Owing to limited availability of scrap in yards, demand surged and sellers resisted the temptation to lower offers. A total of four deals were concluded throughout the week.
  
  

SteelMint's assessment for the US-origin HMS 1&2 (80:20) stands at $375-380/t CFR, significantly up by $10-15/t w-o-w.

• Japanese scrap buyers increase enquiries: Japanese scrap export market witnessed a flutter of activity this week. Overseas buyers increased enquiries for the Japanese material before the Kanto tender outcome and some deals were concluded at slightly higher prices. Meanwhile, buyers and steel mills are actively waiting for Japan's Kanto scrap export tender for clearer market direction.
  SteelMint's assessment for bulk Japanese H2 scrap export prices stands at JPY 47,500/t ($328/t) FOB, unchanged w-o-w.
  
  
• Tokyo Steel trims scrap buy prices:Japan's major EAF steelmaker, Tokyo Steel, cut its scrap buy prices. The company lowered bids for H2 scrap by JPY 500/t ($3/t) for all its plants, effective 6 October. Post-revision, prices of H2 scrap are at JPY 48,500/t ($336/t) delivered to the Tahara plant and JPY 49,500/t ($343/t) for the Utsunomiya plant.
  
  
• Hyundai Steel cuts scrap bids by $3/t: Hyundai Steel cut its bids for Japanese scrap by JPY 500/t ($3/t) for H2 and HS-grade against the last bid on 22 September, 2022. Bid for H2 scrap stands at JPY 48,000/t ($332/t), while for HS the bid is at JPY 53,500/t ($370/t) FOB. Meanwhile, prominent scrap buyer, Daehan Steel has booked a good quantity of H2 material at JPY 49,000/t FOB.
  
  

Furthermore, major mills like Daehan Steel, YK and Korea Steel also lowered bids for domestic scrap by KRW 20,000/t ($14/t), effective 8 October.

• South Korean mills book Russian cargo: Major South Korean steel mills have resumed contracts for Russian scrap after a month's gap, as per Steel Daily. Dongkuk Steel has booked a bulk cargo, containing 10,000 t A3 scrap at $400/t CFR, which is expected to arrive in November. Interestingly, Russian cargo has been booked after a month, whereas prices fell by $25/t against the last deal recorded on 30 August.
  
  
• Vietnam's sluggish demand drags down prices: Imported scrap prices continued to fall on limited bids on the back of sluggish finished steel demand in the domestic and overseas markets. Meanwhile, heavy rainfall and typhoons have kept the market muted. Fresh indicative offers for Japanese H2 are at $385/t CFR, down by $10-15/t w-o-w.
  
  
• UAE extends ferrous scrap export ban: The UAE's Ministry of Economy issued a notice recently stating that the temporary ban on steel scrap and waste paper exports has been extended until 19 March, 2023. The ban has been extended to strengthen the country's domestic demand.
  
  
• Bangladesh imported scrap market volatile: Bangladesh's imported scrap market witnessed mixed sentiments. The major mills were active in bulk cargo bookings at higher prices while the containerised market remained silent. The mid-sized mills continued to postpone their fresh bookings owing to negative market sentiments.
  
  

The Bangladeshi containerised market is still muted, while one more bulk deal from the US West Coast was heard concluded for around 15,000 t each of shredded traded at $420/t and HMS at $415/t CFR Bangladesh.

SteelMint's assessment of shredded scrap from the UK is currently $475/t CFR up by $2/t w-o-w.

• Pakistan's scrap prices up, trades muted: Market activities remained absent on negative sentiments and sluggish finished steel demand. Prices rebounded amid rising offers to Turkiye even as the latter was silent. However, trades in Pakistan remained subdued. Major buyers suspended their production. Fresh offers for UK-origin shredded scrap in containers are at $455-460/t CFR, up by $5/t w-o-w.
  
  
• India's containerised market muted unlike bulk: India's containerised scrap market remained silent during the festive season, as major market participants remained inactive. The mini mills are booking hand-to-mouth and are waiting to understand market trends. Moreover, buyers are actively procuring bulk scrap vessels due to cost competitiveness.
  
  

SteelMint's assessment of shredded scrap in India stood at $455-460/t CFR Nhava Sheva, up $6/t w-o-w.