Weekly round-up: Global ferrous scrap prices extend fall, bulk cargo bookings resume

Global scrap prices continued to see steep declines this week. Turkiye imported scrap prices fell to a 18 month-low. Tokyo Steel and Shagang Steel announced another price cut. Pakistan importers are back in the bulk scrap market after 2 years gap on favourable prices and after a drop in freight rates.

• Turkiye imported scrap prices at 18-month low: Imported scrap trade in Turkiye remained slow throughout the week with limited inquiries. Most mills took a step back to understand the market situation as demand from the downstream sector is yet to improve. Steel producers focussed on finished steel sales while suppliers tried to avoid giving further discounts.
  
  

SteelMint's price assessment for USA-origin HMS 1&2 (80:20) stood at $375/t CFR basis, down considerably by over $25/t w-o-w. Prices hit a 18-month-low.

• Tokyo Steel trims scrap buy prices by $4/t: Tokyo Steel, Japan's largest EAF steelmaker, cut scrap purchase prices by JPY 500/t ($4/t) for one of its steelworks this week. Post-revision, bid prices for H2 scrap are at JPY 55,000/t ($408/t) delivered to the Utsunomiya plant, while bids for other factories remain unchanged.
  
  
• Vietnamese imported scrap prices hit 5-month low: Vietnam's imported scrap market remained less active despite offers having come down to a five-month low. This trend showed despite the drop in domestic and overseas prices due to sluggish demand from end-users.
  
  

Around 30,000 t of EU-origin of bulk cargo comprising HMS 1&2 (80:20) and shredded was booked at $420/t CFR HO Chi Minh City. Another cargo for 8,000 t of bonus material was booked at $435/t CFR Ho Chi Minh City.

Japanese bulk H2 offers are currently assessed at $440/t CFR, sinking by $30/t w-o-w.

• Shagang Steel lowers scrap prices twice this week: China's Shagang Jiangsu Steel cut scrap procurement prices twice this week by a total of RMB 100/t ($15/t) for all grades. After the revision, prices of HMS (6-10mm) are at RMB 3,720/t ($554/t) delivered to headquarters, including 13% VAT.
  
  
• Japan's scrap export prices soften: Japanese scrap export trade resumed this week with lower offers. The export trade had remained limited over the last few weeks, owing to the disparity in bids and offers. However, many overseas buyers like South Korea, Vietnam, and Taiwan were waiting for further price discounts. Meanwhile, Japanese suppliers were actively trading in the domestic market due to better realisations.
  
  

SteelMint's assessment for Japanese H2 scrap export prices stood at JPY 52,000/t ($385/t) FOB, down by JPY 1,000/t ($7/t)w-o-w.

• Pakistan books bulk scrap cargo after 2-years gap: With a sharp fall in global scrap prices and drop in bulk freight rates, Pakistan mills raised inquiries for bulk cargoes which was last seen on March 2020. A few major mills collectively booked a bulk scrap cargo from the United Kingdom. The cargo entirely comprised 35,000 t of shredded material was booked at $475-480/t CFR Qasim basis. Currently, bulk shredded scrap of UK/ Europe-origin stood at $440/t CFR.
  
  

On the other hand, containerised scrap market continued to remain slow with buyers holding back purchases amidst the steep drop in Turkey prices seen recently. SteelMint's assessment for imported containerised shredded material stood at $440/t CFR levels, registering a significant drop of $80-90/t w-o-w.

• Bangladesh mills restock bulk cargoes from EU: Mills already secured inventory last week through bulk bookings from the US, and are yet to make a fresh round of purchases. Rains in most parts of Bangladesh slowed down consumption from end-users.
  
  

Similarly, containerised scrap buyers were ruling the market and they believe suppliers are ready to sell material at their bid prices. But due to slow finished steel consumption, buyers were cautious of booking fresh material amid the inventory already procured.

SteelMint's assessment of UK-origin shredded in containers stood at $490/t CFR levels, down by $50-60/t w-o-w.

• India's ferrous scrap market sees limited trade: Indian buyers were hesitant to buy imported scrap in the week start due to increased preference to domestic material over cost-effectiveness. Moreover, suppliers were also resistant to float fresh offers at lower levels as there was a huge disparity between bids and offers of around $25/t which kept scrap sellers on the sidelines. Market participants were waiting for further a price fall.
  
  

SteelMint's assessment of Europe-origin shredded scrap prices stood at $440/t CFR Nhava Sheva, down by $80/t w-o-w.