Weekly round-up: Global ferrous scrap prices slide further on lower bids

Global ferrous scrap prices drifted down for yet another week. Turkish steel mills held back scrap bookings in expectation of a further drop in offers. The Japanese scrap market remained under pressure on lower bids from South Korea and Vietnam. Japanese scrap suppliers are unlikely to lower scrap export prices further and are waiting for the monthly Kanto Tetsugen scrap export tender scheduled for next week, trader sources informed SteelMint.

• Turkey's import scrap prices hit over one-month low: Imported scrap trade in Turkey remained dull this week as mills held back bookings on bearish sentiments amidst a sharp devaluation in the Turkish Lira against the USD.
  
  

SteelMint's assessment of US-origin HMS 1&2 (80:20) stood at $485/t CFR Turkey, down $5-10/t w-o-w.

• Japan's scrap export prices fall to two-month low on lower bidding: Japanese scrap export prices continued to decline to a two-month low level. Meanwhile, no major deals were reported from Vietnam and South Korea, owing to bid-offer disparities.
  
  

SteelMint's assessment for Japanese H2 export scrap prices stands at JPY 49,000/t FOB ($432/t), decreasing by JPY 1,000/t w-o-w.

• Hyundai Steel reduces bids for Japanese scrap: South Korean steel major Hyundai Steel trimmed bids for Japanese ferrous scrap on 2 Dec by JPY 2,000-3,500/t ($18-31/t) for various grades compared to the last bid on 17 Nov. Bids are now at JPY 47,500/t ($420/t) FOB Japan for H2 grade, lower by JPY 2,000/t. It would be interesting to see if Japanese suppliers allocate volumes considering such a steep decline in bids.
  
  

• Vietnam's imported scrap trade slows down: Major ferrous scrap importer Vietnam witnessed a marginal price correction w-o-w. But, remarkably, despite the sharp reduction in imported scrap prices, limited trade was recorded. Market players chose to wait and watch for further price corrections.
  
  

SteelMint's assessment for Japanese bulk H2 scrap offers are now at $490/t CFR Vietnam, down further by $5/t w-o-w.

• Tokyo Steel keeps scrap purchase prices unchanged: Japan's Tokyo Steel kept its domestic scrap buy prices unchanged for another week, as the company adjusted its purchase price twice in the third week of Nov. The steelmaker continued to pay a bid price of JPY 55,000/t ($486/t) delivered to the Tahara plant in central Japan and the Utsunomiya plant situated in the Kanto region.
  
  
• 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.
  
  

The price of HMS (6-10mm) stands at RMB 3,240/t ($508/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 as mills expect further price correction: The imported scrap market in Bangladesh stayed quiet for yet another week with only a few deals happening in the last few days. Meanwhile, buyers remained cautious and are holding back further bookings as offers are on the higher side.
  
  

SteelMint's daily assessment for UK-origin shredded in containers was at $570/t CFR Chittagong, unchanged w-o-w.

• Pakistan's imported scrap trade remains slow: Pakistan's scrap import market has slowed down this week. The market is mostly quiet as buyers are cautious and waiting for further price correction.
  
  

SteelMint's daily assessment of UK/EU-origin shredded scrap stood at $554/t CFR Port Qasim, down marginally by $1/t w-o-w.

• India's imported scrap market muted on preference for domestic substitutes: India's imported scrap offers have remained largely unchanged against last week, despite a drop in bids. Suppliers are showing more interest in other countries like Pakistan due to better price acceptance. On the other hand, bid-offer disparities have kept Indian buyers away from the import market. Simultaneously, most buyers feel that domestic scrap is more feasible than imported material.
  
  

As per SteelMint's daily assessment, fresh offers for UK-origin shredded scrap are at $550-555/t CFR Nhava Sheva, largely stable w-o-w.