Weekly round-up: Global ferrous scrap prices recover towards weekend amid limited trades

The global imported scrap market witnessed improvement in trades towards the second half of the week after the Turkish deal was concluded at a higher price. Japanese scrap prices remained supported on lower stocks with exporters. Vietnamese buyers stayed out of the imported scrap market amidst bid-offer disparities. South Asian countries like Pakistan and Bangladesh did need-based procurement due to currency volatility, LC issues, and subdued demand amid rains.

• Turkish imported scrap prices inch up: Turkish imported scrap offers were up slightly in recently concluded deal amid material scarcity. Despite this, transactions in the Turkish scrap market did not accelerate much.
  
  

Recently 45,000t bulk cargo of USA origin was booked by a West-Marmara-based steel mill for September shipment, comprising HMS (80:20) of 19,000 t at $402/t, shredded of 21,000 t at $422/t, and bonus of 5,000 t at $422/t.

SteelMint's price assessment for US-origin HMS 1&2 (80:20) stood at $402/t CFR, up by around $5/t w-o-w.

• Vietnam's imported scrap prices head north: Imported scrap prices moved up sharply after the Kanto tender concluded. Feasible domestic scrap prices compelled players to stay out of the global market. However, Vietnamese buyers are likely to raise inquiries to restock inventory ahead of winter season.
  
  

Indicative offers for Japanese bulk H2 scrap were heard at $ 410/t CFR Vietnam, up by $35-40/t w-o-w.

• Japanese scrap export offers rise on increased demand: Japan's scrap export offers continued the uptrend due to lack of scrap and improving demand from domestic and overseas buyers. However, this week no bids were received from prominent buyers like South Korea. Meanwhile, offers for other buying countries like Vietnam and Taiwan increased.
  
  

SteelMint's assessment for Japanese H2 scrap export prices stand at JPY 46,000-47,000/t ($337-344/t) FOB, moving up sharply by JPY 4,000/t ($29/t) w-o-w.

• Tokyo Steel's scrap purchase prices increase: Japan's major EAF steelmaker Tokyo Steel raised scrap buy prices twice this week. The company increased bids for H2 scrap by JPY 3,000/t ($22/t) for all of its plants. Post the second adjustment, bid prices for H2 scrap were at JPY 46,000/t ($336/t) delivered to the Utsunomiya works, while prices for the Tahara plant were set at JPY 45,000/t ($328/t).
  
  
• Shagang steel's scrap prices volatile w-o-w: China's, Jiangsu Shagang Group, scrap purchase prices saw an upward movement. However, in the last revision, prices fell by RMB 50/t($7/t) for all grades. After the final revision, HMS (6-10 mm) prices were at RMB 3,270/t ($480/t) delivered to headquarters, including 13% VAT.
  
  
• Bangladesh bulk booking continues, container market on mute: Major Bangladeshi mills continued to book two bulk cargo for yet another week. Industry participants believe that the market will pick up in September which is considered a favourable season for construction activities.
  
  

Around 32,000 t US-origin, mixed scrap cargo was heard booked. The cargo comprising 18,000 t of HMS and 4,000 t of shredded was booked at $455/t and $460/t CFR Chittagong, respectively, SteelMint learnt from sources.

In another deal, a total of 34,000 t of Russian bulk cargo was booked. The cargo contained 27,000 t of HMS and 7,000 t of shredded which were booked at $439/t and $449/t CFR Chittagong respectively.

The market for imported containerised scrap trades was influenced by increased scrap offers, unstable currency exchange rates, power outages, LC restrictions, and other problems. SteelMint's assessment for UK-origin shredded stands at $510/t CFR, moving down by $10-15/t w-o-w.

• Pakistan imported scrap prices fall, trades improve: The imported scrap market was mostly quiet at the beginning of the week owing to volatility in currency exchange rates, heavy rainfall and weak finished steel market. In contrast, healthy deals were concluded towards the weekend post fall in offers. Around 8,000 t of shredded scrap was booked at $485-$495/t in the last few days by Pakistani mills.
  
  

SteelMint's assessment for shredded 211 scrap in containers from UK/Europe stood at $485-490/t CFR Qasim, down by $10-15/t against last week.

• India's imported scrap price uptrend reverse: Imported scrap prices weakens towards late August. Both sellers and buyers were in a wait-and-watch mode as bulk vessels will arrive soon and limited buying activities amid weak demand for finished steel. However, few mills booked short-sea material to meet their immediate requirements.
  
  

SteelMint's assessment for shredded scrap in India stood at $480-490/t CFR Nhava Sheva, down by $21/t w-o-w.