Weekly round up: Global ferrous scrap prices continue uptrend, but Kanto tender receives lower bids

The global ferrous scrap market showed mixed sentiments as the Turkish market is getting busier with frequent trade throughout the week, along with Vietnamese mills procuring a major chunk in Kanto tender for December month. Shagang Steel increased its scrap procurement prices twice this week after last week's pause.

Meanwhile, South Asian ferrous scrap prices were on an upward following global cues. The Indian market became less responsive with much availability of material followed by a high offer bearing Pakistan ferrous scrap market and silent Bangladesh scrap market.

• Turkish scrap market sees active trade: Steelmakers continued to acquire imported scrap lots amid moderate trade in the Turkish rebar industry. Suppliers took the advantage of insufficient scrap availability and kept offers high since demand was stronger. After the last round of trade was completed, imported scrap prices into Turkiye touched three months high. Around five bulk deals were concluded throughout this week at a range of $379-385/t.
  
  

SteelMint's assessment for US-origin HMS 1&2 (80:20) stood at $385/t CFR, up by $19/t w-o-w.

• Vietnamese mill active in Kanto tender: Due to weak domestic demand for finished steel, imported scrap trade remained modest. Despite favourable rates, there was minimal demand for scrap, which kept fresh bookings low.
  However, in the recently concluded Kanto tender, Vietnamese mills booked 10,000 t of H2 scrap at JPY 47,610/t FAS ($350/t) and JPY 47,442/t FAS ($349/t), in the second and third slots respectively.
  
  

SteelMint's assessment for Japanese H2 material stood at $382/t CFR levels, moving up by $21/t w-o-w.

The assessment for US-origin bulk offers stood at $375/t CFR, up by 15/t w-o-w.

• Kanto concludes at a low price for December: At Japan's prominent Kanto Tetsugen scrap export tender, around 13,000 t of scrap was granted, and the average price for H2 scrap was around JPY 47,568/t ($349/t) FAS, SteelMint learned from sources.
  
  

The tender remained unresolved in November for the second time this year following May due to lower bids from participants. Prices decreased from JPY 49,865 ($341/t) FAS in October to JPY 2,297/t ($17/t) in December.

• Shagang Stel lift scrap purchase prices: Jiangsu Shagang Group raised scrap buying prices this week by RMB 100/t ($14/t) for all grades for HMS (6-10 mm). Prices stood at RMB 3010/t ($433/t) delivered to headquarters, including 13% VAT. Similarly, China's rebar prices for Donghua and Hegang regions increased by RMB 30/t w-o-w RMB 3,770/t and RMB 4,020/t respectively.
  
  
• Bangladesh ferrous scrap market continues to remain silence: As a result of recent active Turkish scrap procurement, imported scrap prices continued to rise. Trade did not pick up though. Steelmakers were cautious while production was modest. The steel sector as a whole continues to face significant challenges from rising production costs, power disruptions, and LC opening limit.

  Bulk and container scrap offers edge up Due to the unfavourable market sentiment, the market for imported bulk scrap was mainly quiet. However, the delay in the LC opening caused problems for traders and steelmakers.Containerised bids for shredded scrap of UK-origin are set at $458/t CFR, significantly increasing by $18/t w-o-w. Meanwhile, containerised HMS 1&2 (80:20) of UK-origin prices were at $428/t CFR Chittagong, up $10-11/t week over week.
  
  

• Pakistan scrap market follows global cues: In reaction to the increase in scrap prices globally, imported scrap prices into Pakistan kept increasing. At higher offers, though, purchasers showed less interest. Meanwhile, some deals were heard to have been concluded at $445-448/t levels and the $435/t range towards the end of the week.
  Around 4,500 t of shredded scrap of EU- origin was booked at the price range of $435-448/t throughout this week.
  
  

SteelMint's assessment of UK/Europe-origin shredded scrap in containers was at $447/t CFR, increasing significantly by $20/t w-o-w.

• Indian mills quiet with limited deals: Indian ferrous scrap market remained mostly slow due to recent bulk arrivals. As per market participants, the availability of materials at the port was more but demand from buyers was not significant due to the bid-offer disparity and local demand was low from end users.
  
  

However, other Indian buyers started procuring throughout this week from new origins like Singapore and the Middle East, although the quantity was not significant.

SteelMint's assessment of Europe-origin shredded scrap offers into India were at $445/t CFR Nhava Sheva, significantly up $20/t w-o-w