Weekly round-up: Global ferrous scrap market shows mixed price trends

The global ferrous scrap market showed mixed sentiments this week. Turkish imported scrap prices fell again on bearish finished steel sales. Tokyo Steel announced its new yard buying prices. The Vietnam market remained silent and prices fell to a four-month low. Japanese suppliers are waiting for the Kanto tender to attain better price clarity, while mills in Bangladesh remained active in booking bulk cargoes.

• Turkey prices fall to 9-month low: Turkish imported scrap trade gained some pace this week after a pause. Recent deals from the Baltic and the USA were concluded at lower prices. SteelMint's assessment of US-origin HMS 1&2 (80:20) stands at $440/t CFR levels, moving down significantly by $15/t w-o-w.
  
  
• Tokyo Steel prices touch 2-month low: Tokyo Steel's scrap purchase prices have fallen to a two-month low on the absence of firm overseas bids. The company cut its bids by JPY 1,000/t ($8/t) for all steelworks, effective from 31 May. Post revision, the bid prices for H2 scrap are at JPY 57,000/t ($448/t) delivered to Tahara and Utsunomiya are at JPY 57,500/t ($452/t).
  
  

Also, the steelmaker announced scrap buying prices for its new yard - H2 scrap is at JPY 57,500/t ($443/t) delivered to Nagoya yard.

• Vietnam's scrap import price falls: Vietnam's imported scrap offers fell to a four-month low. However, buyers and steelmakers are yet to settle workable price levels. High finished steel inventories, however, pushed buyers to the sidelines. Offers for Japanese bulk H2 have come down to $470/t CFR, down $20/t w-o-w.
  
  
• Japanese scrap export offers unchanged, Kanto tender outcome awaited: Japanese scrap export trades remained subdued on lower bids from overseas buyers. Prominent buyers like Vietnam and South Korea are waiting for further price correction. Buyers are waiting for the Kanto scrap export tender outcome for a clear price direction.
  
  

SteelMint's assessment for Japanese H2 scrap export prices stands at JPY 53,000/t ($417/t) FOB, unchanged w-o-w.

• Pakistan scrap trading gathers pace: Pakistan's imported scrap market has regained momentum with mills resuming bookings amid fall in inventories and the hike in domestic scrap prices. However, currency depreciation continued to be a key factor influencing imported scrap bookings.
  
  

Offers for shredded scrap in containers from UK/Europe are at $520/t CFR Qasim.

• Bangladesh resumes bulk booking: Bangladeshi scrap buyers are yet to receive any positive signs from the downstream sector. However, imported scrap offers have inched up slightly, although very few deals were heard concluded.
  
  

Price indications for containerised shredded are now at $545-550/t CFR, up $5-10/t w-o-w.

Bulk scrap trading activity in Bangladesh resumed after a pause of over two weeks. Two of the major mills have reportedly booked cargoes over the last couple of days. A deal for USA-origin mixed cargo containing 30,000 t shredded and HMS was heard concluded: HMS changed hands for $513-515/t while the shredded material was booked at $518-520/t CFR Chittagong.

Another 32,000 t bulk cargo was booked from the UK comprising HMS 1&2 (80:20) sold at $495-500/t and shredded at $515-520/t CFR Chittagong. Few more bulk deals were heard to be concluded at lower offers, however, it could not be confirmed till the time of publishing this report.

• India's imported scrap market volatile: Imported scrap trades picked up pace in the beginning of the week but slowed down towards the weekend. Despite demand in the market buyers are hesitant to book cargoes as current offers are not workable. As per SteelMint assessment, Europe-origin shredded scrap stands at $525/t CFR Nhava Sheva, up $10/t d-o-d.