Weekly round-up: Global ferrous scrap prices show downtrend

Turkish imported scrap prices at over two-month low: Turkey's imported scrap buyers continued with their restocking this week at lower price levels. A total of around seven deals were finalised. Surprisingly, prices dropped in recently-booked deep-sea cargoes. However, limited finished steel demand is the factor which has restrained them from making aggressive bookings. SteelMint's assessment for US-origin HMS 1&2 (80:20) now stands at $463/tonne (t) CFR, dropping further by $7/t w-o-w.

Hyundai Steel reduces bids for Japanese scrap except Shindachi: South Korean steel major Hyundai Steel has reduced bids for Japanese ferrous scrap by JPY 1,500/t ($14/t) against the last bid placed on 29 Jul'21, sources confirmed. Bids for the most-preferred H2 scrap are now at JPY 45,500/t ($415) FoB. Bids for premium Japanese Shindachi bara scrap remain unchanged at JPY 64,000/t FoB ($584). Prices declined on the back of lower bids and decline in global prices.

Tokyo Steel lowers scrap purchase prices twice this week: Japan's leading EAF steel mill, Tokyo Steel, reduced scrap purchase prices twice this week. In its revision announced yesterday, the company decreased prices by JPY 500/t ($5/t) for all its five steelworks. After revision, the company is paying a bid price for H2 scrap of JPY 49,000/t ($446/t) for Tahara and JPY 48,500/t ($442/t) for the Utsunomiya works. Decline in bids by Hyundai Steel for Japanese scrap and fall in global prices have resulted in decline in bids by Tokyo Steel.

Vietnam scrap trade muted on rising Covid cases: Vietnam's imported scrap trade activities remained quiet due to limited deals and lower finished steel demand in the domestic and overseas markets owing to extensions in lockdowns. Bulk imported scrap offers for Japanese H2 scrap were at $485-490/t CFR Vietnam, lower by around $5/t w-o-w. Bids are heard at around $480/t CFR.

Shagang cuts scrap purchase prices by RMB 50/t: China's largest EAF steelmaker, Shagang Jiangsu Steel, announced the first reduction in scrap procurement price this week by RMB 50/t ($8/t) for all grades effective from 6 Aug'21. After the revision, the current price for HMS (6-10 mm) stands at RMB 3,800/t ($587/t), inclusive of 13% VAT, delivered to headquarters. Bearish iron ore and steel market sentiments and lower global scrap prices have led to the price cut.

Pakistan scrap trading slows down: Pakistan's imported scrap market drifted down as most of the steelmakers have already restocked sufficiently before the monsoon and Eid holidays. However the import prices have dropped since the start of the week. Around 2,000 t of containerised shredded material were heard at $525-530/t CFR recently.
SteelMint's bi-weekly assessment for containerised shredded scrap stands at $530-535/t CFR Port Qasim, down by $5-10/t compared to the previous price levels at the start of the week.

Bangladesh extends lockdown, news of bulk bookings surface: The Bangladeshi scrap market remained silent for another week, due to the extension of the lockdown. Similarly, majority of the steel mills, with their operations suspended, are not active in booking scrap cargoes presently. However, a couple of bulk scrap bookings were heard in the market from buyers who were largely looking for urgent restocking from the US and Australia. SteelMint's assessment for fresh offers of shredded stands at $557/t CFR Chittagong, up $5/t w-o-w.

Indian Imported steel scrap market inactive: India's imported scrap market remained less active this week, as insiders opted to wait and watch. The offers remained less workable for majority of the buyers due to price disparity when compared to domestic scrap. In addition, most of the mills were procuring domestic material and not much active bookings of imported scrap were reported for this week.

• SteelMint's assessment for containerised shredded scrap stands at $530-535/t CFR Nhava Sheva.
  
  
• UAE-origin HMS 1 offers are at $485/t CFR Nhava Sheva levels and that for UK at $480-485/t CFR.