Weekly round up: Global scrap prices rebound, trade improves

Global scrap market prices have rebounded towards the weekend. Turkiye's imported scrap prices went up on active transactions recorded in the second half of the week. Following the trend, South Asian scrap prices increased sharply.

On the other hand, Japanese scrap export prices fell due to lower bids fetched at the monthly Kanto tender.

Market overview

• Turkiye's scrap import prices bounce back: Trade activities resumed in Turkiye market. Prices bounced back amid improved finished steel demand. A bunch of deals were concluded at increased prices.Further, negotiations were going on between buyers and suppliers. Steel producers tried to book scrap before the elections amid fears of a sharp weakening of the national currency, which may impact both the domestic and overseas markets.SteelMint's daily assessment for HMS 1&2 (80:20) from the US stood at $375/t CFR Turkiye, inching up d-o-d. However, prices edged down by $20/t w-o-w.
  
  

• Bangladesh's mill books Japanese bulk scrap cargo: A major steel mill in Bangladesh booked a bulk cargo of around 15,000 t of Japanese H2 scrap at JPY 46,226/t FAS ($405/t CFR) in Kanto Tetsugen export tender. This is the third consecutive month that a major mill has won the tender.Fresh indicative offers for Japanese H2 were heard at $405-410/t CFR Chittagong levels. Prices edged down significantly by over $30/t w-o-w.On the other hand, the container market remained muted, with limited inquiries heard. Market participants believe that prices should come down further, and are waiting for clarity.UK-origin shredded scrap prices into Bangladesh stood at $460/t CFR Chattogram, up by $10/t d-o-d and unchanged w-o-w.
  
  

• Pakistan buyers book hefty volumes: Pakistan buyers turned active towards the second half of the week. As a result, many deals were concluded at $435-440/t CFR basis. Experts think that this will boost market sentiment as the country was struggling with political turmoil. For shredded, prices hovered at $439-440/t for UK and Europe-origin material. "Around 10,000 t of imported material was booked as prices were up," said a reliable source.UK-origin shredded scrap prices in Pakistan stood at $439/t CFR Qasim, up $11/t from yesterday. However, prices decreased by $3/t w-o-w.
  
  

• Indian buyers await clarity: Indian mills failed to strike any deals as buyers were not interested at higher offers. "Buyers were bidding at $430/t levels but no deals were concluded," said an Indian trader while speaking exclusively to SteelMint. Market players believe that prices have suddenly increased due to customs clearance issues related to Dubai-imported material and active Turkish deals.Europe-origin shredded scrap offers into India stood at $437/t CFR Nhava Sheva, up $4/t d-o-d.Indian Customs stopped scrap import clearances for UAE-origin material following a detailed risk analysis carried out by the National Customs Targeting Centre (NCTC). It appears that metallic scrap is being imported from the UAE despite an export ban imposed by authorities in that country, and the importer squarely falls within the ambit of the export ban.
  
  

• Bids at Japan's Kanto scrap export tender drop: Around 25,500 t of scrap were awarded, with the average price at around JPY 46,173/t ($342/t) FAS for H2 scrap compared to JPY 50,556/t ($379/t) a month ago, in Japan's Kanto Tetsugen scrap export tender concluded on 10 May'23.The tender fetched bid prices lower by JPY 4,383/t FAS ($32/t) m-o-m. This is the second successive decline after March.Bangladesh maintained the top position as a major mill booked 15,000 t of Japanese H2 grade material at JPY 46,226/t ($342/t) FAS. At second position was a Vietnam mill that booked 5,500 t of H2 material at JPY 46,030/t FAS basis.
  
  

• Hyundai Steel slashes Japanese scrap bids: South Korea's Hyundai Steel slashed bid prices for imported Japanese scrap by up to JPY 1,500/t ($11/t). This is the fifth successive price decline by steel major since Mar'23. Bids for H2 scrap stand at JPY 46,300/t ($345/t) FOB and those for HS grade at JPY 50,300/t ($375/t) FOB, down by JPY 1,000/t ($7/t). The company continues to trim prices considering lower domestic market prices.
  
  
• China's Shagang Steel cuts ferrous scrap buying prices: China's Shagang Steel reduced ferrous scrap purchase prices by RMB 50/t ($7/t) for all grades, effective 12 May'23. After the revision, HMS (6-10 mm) prices stand at RMB 2,770/t ($401/t), delivered to headquarters, including 13% VAT. In response to falling finished steel prices, the company decided to lower bid prices.