Weekly round-up: Global scrap prices edge down w-o-w on slow trade
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Global ferrous scrap prices dropped for yet another week. This happened because the major player, Turkiye, concluded deals towards the weekend at lower prices after a short pause in the market.
In Bangladesh's import market, smaller volumes in containers and some in bulk were booked throughout the week ahead of Ramadan holidays. Meanwhile, Pakistani buyers concluded a couple of deals at current offers from sellers' side.
Turkiye: The Turkish imported scrap market remained quiet amid slow buying inquiries. However, late this week, some low-price deals were concluded from Europe and US origin. Imported scrap prices from Europe fell further in a recent booking.
Cargo comprising HMS (80:20) and bonus, was booked by a West Marmara-based steel mill at $431/t and $451/t CFR, respectively, followed by one more deal of HMS(80:20) grade at $425/t and will be delivered in May.
Bangladesh: After a month's gap, a major Bangladesh-based steel producer has booked bulk scrap cargo from Japan's monthly Kanto scrap export tender. The tender concluded on 11 April 2023, in which the company participated and presented the highest bid among other participants.
The company booked 15,000 t of scrap, with an average price at around JPY 50,556/t ($379/t) FAS (the arrival price is around $446-450/t CFR) for H2 scrap.
In another deal, the same mill booked a bulk scrap cargo of Australian origin at a lower price. The cargo contained 27,000 t of mixed material - HMS (80:20) and shredded - which was booked at $456/t and $461/t CFR Bangladesh, respectively.SteelMint's assessment of UK-origin shredded scrap in containers stood at $472/t CFR, down by $14/t w-o-w.
India: Indian ferrous scrap prices fell slightly towards the weekend. However, trade activities remained slow. Market participants believe that domestic prices were more attractive compared to imports. Some deals of different grades like shredded as well as (80:20) were heard from Europe origin with cargoes slated to arrive at Nhava Sheva and Vizag ports.
SteelMint's assessment for imported shredded scrap in containers stood at $465/t CFR, up by $4/t w-o-w.
Pakistan: Pakistan's imported scrap market remained muted in the absence of buyers. Steel producers are cautious in the market due to limited demand for finished steel. Yet market participants are hopeful that the market will pick up after Eid holidays.
It may be noted here that there are limited working days during Ramadan. The market will be officially closed from 20 April for Eid holidays.
SteelMint's assessment of imported shredded scrap in containers stood at $465/t CFR, stable w-o-w.
Japan Japan's Kanto scrap export tender prices dropped to a 3-month low in April. After the decline in bid prices in the tender, following the trend, Japan's domestic scrap prices also dropped. Nevertheless, South Korean mills adjusted their scrap purchase prices which kept Japanese suppliers under pressure to lower their offers. Bid prices declined significantly by JPY 4,882/t ($37/t) m-o-m compared to bids of JPY 55,438/t in March.
SteelMint's assessment for Japanese H2 scrap stands at JPY 49,500-50,000/t ($370-374/t), down by JPY 1,000/t ($7/t) w-o-w. Prices fell to a one-month low.
Tokyo Steel: Tokyo Steel, Japan's major EAF steelmaker, trimmed ferrous scrap procurement prices for all plants, effective 12 April 2023. Prices for Utsunomiya and Okayama plants were reduced by $1,000/t ($8/t) and for other plants by $500/t ($4/t). Post-revision, prices for H2 scrap stood at JPY 51,000/t ($383/t), delivered to the Utsunomiya plant, JPY 52,000/t ($391/t) to Tahara, and JPY 51,500/t ($387/t) to Okayama plants.
Shagang Steel: China's Shagang Steel reduced ferrous scrap purchase prices by RMB 50/t ($7/t) for all grades. After the revision, HMS (6-10 mm) prices were at RMB 3,070/t ($447/t), delivered to headquarters, including 13% VAT. The company slashed bids for the first time this month amid sluggish steel demand.
Vietnam: Scrap buyers were quiet amid muted steel demand from downstream sectors. Vietnam's scrap buyers were quiet due to limited demand in the downstream sectors such as the real estate industry (including housing, commercial buildings, and factories) that witnessed a decline in demand by 25-30% y-o-y, SteelMint learnt from sources.
