Weekly round-up: Global ferrous scrap market turns active, prices rebound

Scrap prices in Turkey and South Asian countries continued to firm up on active bookings after the New Year holidays. Japanese scrap export prices rose sharply after bids in the Kanto tender surged following which South Korean mills also lifted their bids for scrap purchases.

Global Market Highlights:

• Turkey's imported scrap prices rebound to one-month high: Imported scrap prices into Turkey hit a one month-high, as per data maintained with SteelMint. Turkish buyers remained active in booking cargoes of the US-, Baltic-, and Benelux- origins.
  
  

SteelMint's assessment of US-origin HMS 1 & 2 (80:20) stood at $472/tonne (t) CFR Turkey, moving up significantly by around $5-10/t w-o-w.

• Japanese scrap export offers rise following surge in Kanto tender bids: Japan's monthly Kanto Tetsugen scrap export tender was concluded on 12 Jan'22 after two months. Bids rose significantly compared to the last concluded tender.
  
  

A total of 10,100 t of H2 scrap was awarded at an average price of JPY 50,983/t ($442/t) FAS. However, bids were received for around 124,800 t of scrap.

SteelMint's price assessment for Japanese H2 scrap stood at JPY 49,000/t ($429/t) FOB basis, moving up by JPY 2,000/t ($17/t) w-o-w.

• Hyundai Steel hikes bids for Japanese scrap: South Korean steel major, Hyundai Steel, raised bids for HS and H2 grade scrap on 13 Jan'22 following a rise in bids of Kanto tender on 12 Jan'22. The company raised bids by JPY 4,000/t ($35/t) for high-grade HS scrap compared to the last bid presented on 23 Dec'21 while bids for H2 scrap increased by JPY 2000/t ($17/t). Bids for HS scrap are now at to JPY 58,000/t ($506/t) and for H2 are at JPY 49,000/t ($428/t) FOB.
  
  
• Tokyo Steel cuts scrap procurement prices by JPY 500/t ($4/t): Tokyo Steel has cut its scrap buy prices by JPY 500/t ($4/t) on 12 Jan'22 for one of its steelworks, effective from 13 Jan'22. Post-revision, the company's bid price for H2 scrap stood at JPY 53,000/t ($460/t) delivered to Utsunomiya, while prices for the other plants remained unchanged.
  
  

Source: Tokyo Steel
Prices in JPY

• Vietnam's imported scrap offers up: SteelMint's assessment for bulk Japanese H2 scrap stood at $500-505/t on CFR basis, up by $10-15/t as against the last assessment on 10 Jan'22. Domestic scrap prices increased on tight supplies. The procurement prices of H1 and H2 grades are at VND 12,400/kg ($539/t) and VND 12,100/kg ($526/t), respectively, up VND 600-1,000/kg ($26-43/t) compared to 3 Jan'22.
  
  
• Shagang Steel keeps scrap purchase prices stable: China's Shagang Jiangsu Steel kept its purchase prices unchanged this week, after raising prices on 7 Jan'21. Last week, the steel producer had hiked prices by RMB 100/t ($16/t) for all grades, effective 8 Jan'21. After the revision, prices of HMS (6-10mm) stood at RMB 3,690/t ($581/t) delivered to headquarters, including 13% VAT.
  
  
• Bangladesh's imported scrap offers rise: Imported scrap prices into Bangladesh increased. However, steel prices continued to remain unchanged. Imported scrap trade in containers picked up significantly this week with deals of over 35,000 t being concluded.
  
  

SteelMint's daily assessment for UK-origin shredded scrap in containers was recorded at $568/t CFR Chittagong, up by around $10/t on the week.

Around 32,000 t of US-origin bulk HMS cargo comprising shredded material was booked at around $515/t CFR Chittagong. With the hike in Turkey's import prices, fresh offers for US-origin HMS rose to $520-530/t CFR Chittagong, up by around $5/t on a weekly basis.

• Pakistan's imported scrap prices rebound to one-month high: Pakistan's imported scrap prices hit a one-month high as buyers continued to remained active this week. A few bookings for containers were heard to have been concluded at higher prices.
  
  

SteelMint's daily assessment of UK/EU-origin shredded scrap stood at $552/t CFR Port Qasim, up by $10-15/t w-o-w.

• Indian mills active in booking imported HMS: India's imported scrap trade for HMS grade remained active this week. Buyers were keen to book fresh material on rising prices and supportive domestic sentiments. However, demand for shredded material remained muted due to high offers, SteelMint learnt from sources.
  
  

Fresh offers for UK/EU-origin shredded material in containers stand at $540-545/t CFR Nhava Sheva, up $5-6/t w-o-w.