Weekly round-up: Global ferrous scrap prices show downtrend

Global ferrous scrap prices drifted down for yet another week. The most awaited Japan's Kanto tender was conducted on 9 Dec'21 but the results remain inconclusive on price differences with the domestic market. Tokyo Steel cuts scrap buy prices after a long 3-week gap, On the other hand, China's Shagang Steel has kept scrap purchase prices stable.

• Turkish imported scrap prices fall: The bearish sentiments in the finished long steel market and currency "rise and fall" have continued to weigh down imported scrap prices.
  
  

A US-origin cargo containing 22,000 t of HMS 1&2 (80:20) and 8,000 t of shredded scrap was booked at an average price of $476/t CFR Turkey by a West Marmara-based steel mill recently, SteelMint notes.

SteelMint's assessment of US-origin HMS 1&2 (80:20) stood at $473/t CFR Turkey, down $10-15/t w-o-w.

• Japan's Kanto tender inconclusive on price differences: Japan's scrap export price driver, the monthly Kanto Tetsugen ferrous scrap export tender, for Dec'21 was conducted on 9 Dec'21. The lower bids from participants resulted in the tender remaining inconclusive for the second consecutive month, SteelMint understands.
  
  

The bid price was comparatively lower than the suppliers' targeted price and prevailing domestic offers. Bids have fallen following the decline in bids for Japanese scrap from Vietnamese, Bangladesh, and South Korean mills.

• Hyundai Steel lowers bids for Japanese scrap: South Korean steel major Hyundai Steel slashed bids for Japanese ferrous scrap recently by JPY 500-2,000/t ($4-18/t) for various grades compared to the last bid on 2 Dec'21. Bids are now at JPY 47,000 ($414/t) FOB Japan for H2 grade scrap, lower by JPY 500/t. Bids by Hyundai Steel have declined further after the Kanto tender remained inconclusive.
  
  
• Vietnam's imported scrap market quiet: Vietnam's imported scrap market has stayed quiet for yet another week with prices remaining mainly range-bound. Meanwhile, Vietnamese steelmakers and buyers have opted to wait and watch for a clearer price direction.
  
  

SteelMint's assessment for Japanese bulk H2 scrap offers are now at $490-495/t CFR Vietnam, largely stable w-o-w.

• Tokyo Steel trims scrap procurement prices: Tokyo Steel lowered scrap purchase bids for two steelworks on 9 Dec'21 after a gap of three weeks. H2 grade scrap prices have been corrected by JPY 500/t ($4/t). Post-revision, the company's price for H2 scrap stands at JPY 54,500/t ($481/t) for the Tahara and Utsunomiya works.
  
  

However, the price for a new press A grade stands at JPY 58,500/t ($516/t), down 2,500/t ($22/t) against the last revision.

Prices in JPY
Source: Tokyo Steel

• Shagang Steel's scrap purchase prices stable: China's Shagang Jiangsu Steel's scrap buy prices remained unchanged for yet another week after the company announced three price cuts of RMB 180/t ($28/t) for all grades before 19 Nov'21.
  The price of HMS (6-10mm) stands at RMB 3,240/t ($509/t), including 13% VAT delivered to headquarters. Bearish steel market sentiments and piling up of inventories at mills have led to the cutback in scrap buy prices.
  
  
• Bangladesh's scrap import market silent on lesser trades: Bangladesh's imported scrap market remained silent this week with limited deals concluded, as many steel mills have actively restocked bulk cargoes in the last week of Nov'21. Additionally, the constant rainfall has left an adverse impact on construction activities which, in turn, led to a price correction by steel mills.
  
  

SteelMint's daily assessment for UK-origin shredded in containers was at $568/t CFR Chittagong, down marginally by $2/t w-o-w.

• Pakistan's imported scrap prices remain range-bound: Pakistan's imported scrap trade improved slightly since the last weekend with a few deals concluded. Market insiders pointed out various factors that kept buyers active in the imported scrap market, including increasing steel scrap prices and freight charges. However, mini-mills are expecting a further price correction.
  
  

SteelMint's daily assessment of UK/EU-origin shredded scrap stood at $553/t CFR Port Qasim, down marginally by $1/t w-o-w.

• India's imported scrap trade picks up: The global downtrend had put Indian imported scrap prices under pressure. As prices went down, imported scrap trade picked up slightly w-o-w. However, limited deals were heard to have been concluded at a lower price while inquiries were slightly better compared to those seen in the past couple of weeks.
  
  

As per SteelMint's daily assessment, fresh offers for UK-origin shredded scrap are at $548/t CFR Nhava Sheva, down by $2-5/t w-o-w.