Weekly round-up: Global ferrous scrap trade slows down amid bid-offer disparities

Global scrap market witnessed slow activities this week as compared to last week. Buyers from South Asian countries retreated towards the end of last week ahead of the upcoming holy month of Ramadan and approaching fiscal year-end of India. Japanese scrap prices rallied on currency depreciation and the hike in bids from South Korea and Vietnam.

• Turkey's imported scrap market awaits fresh round of deals: Turkey, a major importer of scrap, witnessed mixed sentiments in the imported scrap market at the beginning of the week. However, towards the end of the week, business activities slowed down and market participants were waiting for clear directions in the next round of deals.
  
  

Suppliers kept quoting higher offers while the majority of the steel mills took a step back amid lower finished steel demand in exports and domestic sectors. Nevertheless, there was still a room for April shipments as mills had low inventories.

SteelMint's assessment of US-origin HMS 1 & 2 (80:20) prices was at $655/tonne (t) CFR Turkey.

• Japanese scrap export prices increase further: Japanese scrap export offers increased further as leading buyers raised their bids. Taiwan and Vietnam are likely to show high interest as Japanese Yen depreciated against the dollar.
  
  

SteelMint's assessment for Japanese H2 scrap export prices stood at JPY 65,000/t ($534/t) FOB, up by JPY 2,500/t ($20/t) w-o-w.

• Hyundai Steel hikes Japanese scrap buy prices: South Korea's Hyundai Steel hiked bids for Japanese scrap on 24 Mar'22 by up to JPY 3,500/t ($29/t) against the last bid on 17 Mar'22. Bids for H2 grade rose by JPY 1,500/t and high-grade scrap by JPY 3,500/t. Bids for H2 grade are now at JPY 65,000/t ($536/t), while for HS grade bids at JPY 70,500/t ($582/t) FOB.
  
  
• Tokyo Steel lifts scrap buy prices: Tokyo Steel raised scrap purchase prices for the fourth time this month on 23 Mar'22. The company increased bids by $8/t for the Tahara and Utsunomiya plants. Post-revision, the company's bid price for H2 scrap stood at JPY 64,000/t ($529/t) delivered to Tahara and Utsunomiya effective 23 Mar'22.
  
  

• Shagang Steel lifts scrap purchase price: Shagang Group, China's leading electric arc furnace (EAF) steelmaker headquartered in Jiangsu, raised its scrap procurement prices by RMB 100/t ($16/t), effective from 23 Mar'22, in an attempt to secure deliveries. Current prices of HMS (6-10 mm) stand at RMB 3,870/t ($607/t), including 13% VAT, delivered to headquarters. Notably, the company's scrap purchase bids hit a 10-month high. The similar levels were last seen in end May'21.
  
  
• SE Asia imported scrap trade yet to pick up: Global ferrous scrap price rally slowed down towards the end of last week after prices dropped in Turkey. Vietnam and other South East Asian countries were struggling to keep pace with high offers from global suppliers. Additionally, the disparity in bids and offers kept trading activities constricted.
  
  

Vietnam's steel sector is moving at a slow pace, as the input costs increased significantly. Imported scrap offers for the deep-sea cargo and by the nearest supplier, Japan, remained high.

SteelMint's assessment for Japanese bulk H2 stood at $630/t CFR Vietnam, up by $10/t w-o-w.

• Pakistan's imported scrap trade slows down: Pakistan's scrap import market did not see any major improvement this week despite being a week away from the holy month of Ramadan starting 3 Apr'22. The widening price gap between bids and offers kept steel mills away from making bulk bookings.
  
  

SteelMint's assessment for UK/EU-origin shredded scrap stood at $645/t CFR Port Qasim, largely stable w-o-w.

• Bangladesh's imported scrap prices rise further: Bangladesh's imported scrap market slowed down this week ahead of the upcoming holy month of Ramadan. However, imported scrap offers remained high, following the global uptrend. However, trading activities weakened, owing to the disparity in bids and offers. Market players opted to wait and watch for the clear market direction.
  
  

SteelMint's daily assessment for UK-origin shredded scrap in containers was recorded at $680/t CFR Chittagong, an increase of $20/t on weekly basis.

• India's imported scrap trade quiet: India's imported scrap market remained quiet this week as market players opted to wait and watch amid volatility in the market. However, offers from global suppliers remained on the higher side. In addition, lower domestic prices also weighed on imported scrap trade.
  
  

Fresh offers for UK/EU-origin shredded were offered at $655-660/t CFR Nhava Sheva levels. Yet deals remained absent at these levels.