Weekly round-up: Global ferrous scrap prices rebound

• Turkey's imported scrap prices bounce back: Turkish mills continued booking deep-sea scrap cargoes through the week on rising trade concerns to some extent. Market players believe that robust demand for billets sustained scrap booking prices. Moreover, freight rates from the US coast to Turkey fell sharply which eased export prices of scrap. SteelMint's assessment for US-origin HMS 1&2 (80:20) stands at $441/tonne (t) CFR Turkey, up by $5/t w-o-w.
  
  
• Japanese scrap export trade picks up: Japanese scrap prices improved recently riding a rebound in the export market instantly after Japan's monthly Kanto Tetsugen ferrous scrap export tender for Sept'21 was concluded. However, countries like South Korea and Bangladesh stayed away from booking Japanese cargoes. SteelMint's assessment for Japanese scrap export offers stand at JPY 47,500/t FOB, up by JPY 2,500/t w-o-w.
  
  
• Tokyo Steel raises scrap purchase prices twice this week: Japan's leading EAF steel mill, Tokyo Steel, increased its scrap purchase prices twice this week. In its first announcement, the company raised bids by up to JPY 1,000/tonne (t) ($9/t). However, prices for the Tahara and Utsonumiya works were kept unchanged.
  
  

Another price hike of JPY 1,000/t ($9/t) was announced on 17 Sept'21 for four of its steelworks, except Utsunomiya, effective 18 Sept. Post-second revision, the company's bid prices for H2 scrap will be at JPY 49,000/t ($446) for the Tahara steelworks.

Source: Tokyo Steel
Prices in JPY

• Hyundai Steel lowers bids for Japanese scrap by up to $9/t: Hyundai Steel has reduced bids for Japanese ferrous scrap by JPY 1,000/t ($9) for premium Shindachi bara scrap and JPY 500/t ($5/t) for other grades compared to the last bid on 27 Aug'21. Bids for H2 scrap are now at JPY 43,500/t ($395/t) FOB. Bids for Shindachi bara are at JPY 61,500/t ($558/t) FOB. The bid validity was till 14 Sept'21.
  
  
• Vietnam's imported scrap market rebounds: The Vietnamese market has been waiting since the last one month since the lockdown was imposed. However, if local authorities lift restrictions by 21 Sept'21 and construction activities resume, then trading activities are likely to pick up in the near term. SteelMint's assessment for Japanese bulk H2 moved up to around $470-475/t CFR Vietnam, up by $5-10/t w-o-w.
  
  
• Shagang cuts scrap procurement prices by $11/t: China's largest EAF steelmaker, Shagang Jiangsu Steel, has announced the first reduction in scrap procurement prices this week, after a hike seen at the start of the month. The steelmaker has cut scrap purchase prices by RMB 70/t ($11/t) for all grades from 17 Sept'21. After the recent revision, the price of HMS (6-10 mm) stands at RMB 3,710/t ($575/t), including 13% VAT, delivered to headquarters.
  
  
• Bangladeshi imported bulk scrap trade improves: Bangladesh's scrap import market has been active this week owing to steel demand picking up in the upcoming month. Meanwhile, major mills would import more bulk scrap but the core problem now is of global container shortage which is making buyers take a step back. However, a few deals for bulk cargoes are likely to happen as negotiations are on at present. Notably,
  
  

1. Bangladeshi mills have booked two bulk vessels from the US at $520/t CFR Chittagong. Another from Australia, for 25,000 t of bulk scrap, was heard to have been booked at $515/t CFR Chittagong, SteelMint understands.

2. SteelMint's price assessments for shredded of UK/EU-origin is being offered at $535-540/t CFR Chittagong levels, down around ($5-10) w-o-w.

3. Indicative offers for US-origin shredded material in bulk are being cited at $520-525/tonne (t) CFR Chittagong levels.

4. Offers for US-origin HMS bulk scrap stand at $520/t CFR Chittagong, decreasing $10/t on the week.

• Pakistan imported scrap prices edge down: Market performers are not very active presently which resulted in restricted trade. Furthermore, several market insiders believe that prices are expected to come down in the near term. However, the market can see good demand when the old inventory frees as various steel mills have older-priced stock which would probably take additional 10 to 15 days to get liquidated.
  
  

SteelMint's bi-weekly assessment for shredded scrap of UK/EU-origin stands at $520-525/t CFR Port Qasim, down $5/t compared to the beginning of this week.

• India's imported scrap prices stable in recent deals: India's imported scrap market saw some trade activities this week with some deals getting concluded. However, not many participants are active at present as they are preferring domestic substitutes over imported scrap amid huge bid-offer disparities. Fresh offers are being quoted at $520-525/t CFR levels as per SteelMint's bi-weekly assessment.