Weekly round-up: Global ferrous scrap prices head south after Eid holidays

Global scrap trades remained weak throughout the week amidst the Eid holidays. Mills are yet to resume bookings fully. The Turkish market was mute due to the week-long Eid holidays. Japan's Kanto tender concluded with prices falling to the lowest levels in a year. Scrap trade in South Asia slowed down during the week due to negative finished steel sentiments.

• Turkish import market quiet during holidays: The Turkish imported scrap market remained quiet this week as most steel producers were out of the market during the Eid holidays. Negotiations were almost absent for fresh bookings for ferrous scrap, as the importers didn't float fresh bids.
  
  

SteelMint's price assessment for US-origin HMS 1&2 (80:20) is at $410/t CFR, unchanged w-o-w.

• Kanto scrap tender prices fall to over 1-year low: Japan's monthly Kanto Tetsugen ferrous scrap export tender for July was concluded this week. A total of 25,000 tonnes (t) of Japanese H2 scrap was awarded at an average price of JPY 44,554/t ($324/t) FAS, falling considerably by JPY 9,006/t ($66/t). Prices have dropped to over one-year low, as per data maintained with SteelMint. Sources revealed that the materials were booked by Vietnam and Bangladesh-based mills.
  
  
• Vietnam's imported scrap trades remain dull: Amid heavy rainfall in many parts of Vietnam, scrap buyers desisted from booking fresh cargoes from overseas suppliers. Scrap prices, however, remain largely stable w-o-w. Meanwhile, a few mills opted for domestic material due to the need for prompt delivery as well as cost effectiveness.
  
  

Fresh offers for Japanese H2 bulk cargoes were at $395/t CFR Vietnam, down by $10/t w-o-w.

• Tokyo Steel scrap purchase price hits 10-months low: Tokyo Steel has reduced scrap purchase prices to a nearly 10-month low this week following low bids fetched in Kanto scrap export tender. The company has reduced bids by up to JPY 3,500/t ($25/t) for all its plants. After adjustment, bid prices for H2 scrap are at JPY 48,000/t ($346/t) supplied to the Tahara plant and JPY 46,500/t ($336/t) delivered to the Utsunomiya works.
  
  

• Shagang Steel's scrap buy prices at nearly 2-year low: China's electric arc furnace (EAF) steelmaker Jiangsu Shagang Group's scrap purchase prices fell to a two-year low since October 2020. The steelmaker has cut prices by a total of RMB 480/t ($71/t) for all grades this week. Current prices of HMS (6-10 mm) are at RMB 2,770/t ($412/t), including 13% VAT, delivered to headquarters.
  
  
• Bangladesh's container market mute: Steel mills in Bangladesh continued to remain silent about ferrous scrap purchase amidst the Eid-ul-Adha holidays. Mills aren't active as major players are yet to resume operations post holidays. Meanwhile, a few buyers were inactive due to volatility in currency exchange rate. Fresh offers for UK-origin shredded are at $505-510/t CFR, up significantly by $10-15/t w-o-w.
  
  

Bangladeshi buyers had been away from booking any bulk cargoes from Japan in the last few months. But a major mill has bid for Japanese H2 material in this month's Kanto tender. The cargo of 15,000 t of H2 material was booked at JPY 44,420/t (323/t) on FAS basis.

• Scrap import prices in Pakistan fall towards weekend: Pakistan's imported scrap market was inactive during the festive holidays. However, imported scrap prices moved up further tracking global uptrend and the rise in offers by suppliers. However, towards the weekend prices fell drastically and some Europe-origin cargoes were booked.
  
  

SteelMint's assessment for shredded 211 scrap from UK/Europe stands at $475-480/t CFR Qasim.

• India's imported scrap market largely quiet: Imported scrap demand in India continues to remain subdued due to limited buying during the monsoon, ongoing currency devaluation and Eid holidays. Negative market sentiments in Turkey also impacted India scrap import market adversly. Meanwhile, around 1,200 t of HMS-1 of Dubai origin was traded at $480/t CFR Nhava Sheva towards the end of the week.
  
  

SteelMint's assessment of Europe-origin shredded scrap prices stood at $480-485/t CFR Nhava Sheva, up $10-15/t w-o-w. Dubai origin HMS-1 scrap prices stood at $480/t CFR Nhava Sheva, down $5-10/t w-o-w.