Weekly round-up: Global ferrous scrap prices see positive price corrections, except in China

The global ferrous scrap markets saw positive price corrections this week, excluding China and the Far East. China's Shagang Steel reduced bids due to weak domestic demand, followed by Japan's Kanto tender which saw a slight upward adjustment.

Meanwhile, Tokyo Steel's bids remained steady. In Turkiye, moderate market activity was fuelled by slight improvements in European and US supplier markets. India's imported scrap trade showed high-priced deals for UK/EU-origin shredded scrap, while South Asian markets awaited price corrections.

Turkiye: The imported scrap market in Turkiye witnessed moderate activity as there was some improvement in supplies from Europe and the US. US-origin bulk HMS 1&2 (80:20) rose $7/t w-o-w to $357/t CFR, but was down $16/t from a month ago. Rebar prices decreased $5/t w-o-w stood at $560/t, closing the gap with scrap to $200-203/t. Scrap deals ranged from $352 to $357/t, mainly for European material.

Deals during this week involved three to four transactions at prices ranging from $352 to $357/t. The material was mostly of European origin.

India: This week, high-priced deals persisted in India's scrap market, with shredded of UK/EU origin at $420-422/t CFR. Weak demand in South Asian countries like Bangladesh and Pakistan led to a less active market. The Indian imported scrap market remained upward as domestic demand stagnated. July saw a 10% y-o-y rise in imported scrap consumption. Offers for Europe-origin HMS (80:20) were at $395-400/t CFR Nhava Sheva, while bids ranged between $390-392/t.

For Europe-origin HMS (80:20), offers to Nhava Sheva CFR were noted at $395-400/t. Meanwhile, bids were reportedly in the range of $390-392/t, reflecting a decrease of $5-8/t. West African HMS (80:20) was priced at $390-392/t for west coast India and $395-398/t for the southern coast, this week.

Pakistan: Pakistan's imported scrap market had increased offers by $5/t to $425/t. Domestic availability was decent, and containerized UK/Europe-origin material was booked at $420- $425/t CFR. Shredded scrap from the UK was assessed at $424/t CFR Qasim, up $8/t w-o-w.

Market sources indicated that trade volumes of 3,000 to 4,000 t of shredded scrap were recorded this week, additionally, 2,000 t of re-rollable scrap from Europe was also booked at $510/t CFR Qasim.

Bangladesh: Slow buying and moderate trading characterized Bangladesh's scrap market. Kanto's tender and Turkish buyers led to increased US bulk HMS offers. UK-origin shredded scrap stood at $430/t CFR Chattogram. Recent transactions included South American HMS (80:20) at $410/t and Hong Kong-origin PNS at $435/t CFR.

Consequently, prices saw a slight increase w-o-w. SteelMint's assessment for UK-origin shredded scrap stood at $430/t CFR Chattogram, up by $5-7/t w-o-w.

In the recent Kanto tender, major Bangladeshi mills actively participated, with the highest bid placed for Japanese materials. The steel mills secured 15,000 t of H2-grade bulk cargo, maintaining their consistent procurement pattern.

Rebar prices in Chattogram and Dhaka regions, ranged between BDT 93,000-94,000/t ($850-859/t) and BDT 83,000-84,000/t ($758-767/t) respectively. Local ship-breaking scrap is priced at BDT 60,000/t ($548/t) ex-yard.

Japan: Japan's Kanto Tetsugen scrap export tender for August 2023 saw bid prices staying mostly stable compared to July. Japanese scrap export market is expecte to remain stable, with demand recovering. It is worth noting that FOB prices for Japanese scrap exports were lower than FAS prices by $9/t tentatively.

China: China's Shagang Steel cut ferrous scrap purchase prices by RMB 60/t ($8/t) for all grades this week. Post-revision, HMS (6-10 mm) prices stood at RMB 2,920/t ($405/t), including 13% VAT, delivered to headquarters. This is the second consecutive cut amid weaker steel demand in the domestic market.

Vietnam: Sparse Japanese scrap imports were seen due to differing bids and offers. US-origin bulk HMS 1&2 were at around $390/t CFR Vietnam, but buyers consistently lowered their bids w-o-w for H2 scrap to around $380/t CFR.