Global Ferrous Scrap Market Overview - Week 39, 2018

Slight upward movement in prices observed in Taiwan and Bangladesh on tight supply.

Japan’s Tokyo Steel raised scrap prices at all plants except Utsunomiya amid intense production operations with optimism on high steel demand during ongoing autumn season. South Korea's Hyundai Steel continued buying domestic scrap amid considerable inventories. China’s scrap prices likely to move up further amid restocking ahead of approaching holidays.

Turkish mills continue bookings at range bound prices - Turkey scrap importers booked Baltic origin scrap at majorly stable prices in recent 4-5 deals. However, USA recyclers remained on the sidelines with price expectations above the current Turkish levels amid strong demand from Asian markets. In the recent deal, 30,000 MT cargo was sold to comprising 23,000 MT HMS 1&2 (80:20) at USD 320/MT and 7,000 MT Bonus at USD 330/MT, CFR Turkey. Thus, price assessment for USA origin HMS (80:20) scrap stood at around USD 324-325/MT, CFR.

Japan’s Tokyo Steel raises scrap prices further except Utsunomiya plant - Japanese market resumed activities this week after three successive days of Autumnal holidays, with EAF steelmakers increase the production for high finish steel demand season. Tokyo Steel raised prices by USD 5/MT at all other plants except Utsunomiya amid depreciating Yen against USD. Now, H2 scrap prices stand at JPY 38,500/MT (USD 341) for Okayama and Kyushu. Prices at largest plant Tahara in central Japan and Takamatsu steel center in Southern Japan now stand at JPY 38,000/MT.

Hyundai Steel continues with individual negotiation for Japanese scrap - South Korea’s leading EAF steelmaker, Hyundai Steel cut domestic scrap prices amid high inventories in hand. Hyundai continues scrap purchases from Japan through individual negotiation instead of bidding for H2.

India imported scrap prices stable, limited deals reported - Indian scrap importers observed stability in scrap prices amid limited trades reported this week. With no strong reason of sharp downward price correction in the near future, scrap market is likely to adjust price levels for fresh round of bookings amid currency seemed to settle down at the new lows ever since.

Offers for UK and Europe origin containerized Shredded scrap heard stable in the range of USD 360-365/MT, CFR Nhava Sheva. While strong demand pushed Dubai HMS 1 offers slightly up to levels USD 355-357/MT, CFR. Minor trades for South African HMS 1&2 in containers learned at around USD 345-350/MT, CFR Nhava Sheva.

Currently, HMS 1&2 (80:20) basic prices assessed at INR 27,800-28,000/MT (USD 383-386) stable on W-o-W, ex- Mumbai. However, in other regions like Kandla, Alang and Ahmedabad prices have weakened on weekly premises. Most of the participants keep preferring local scrap over imported amid considerable availability of local scrap and sponge iron as well.

Pakistan scrap market likely to pick up, steel market improves - Pakistan’s market remained slow in picking up in activities however with the signs of improvement in the local steel demand, scrap restocking activities are expected to increase in coming days. Offers for containerized Shredded scrap heard in the range of USD 360-365/MT, CFR Qasim for Europe and UK origin, which remain almost stable on W-o-W basis. UAE based suppliers remain holding offers for HMS 1 high at around USD 358-360/MT, CFR Qasim. Scrap buyers seemed actively looking for competitive prices on limited inventories in hand. Local steel prices move up PKR 1000-2000/MT for billet and rebar on W-o-W and it is expected to get improved further.

Bangladesh scrap market turns silent amid dull steel demand - Shredded 211 scrap in containers from UK & USA suppliers was being offered stable at around USD 375-380/MT, CFR. Offers assessed for South African origin P&S scrap at around USD 372-375/MT, CFR. HMS 1&2 offers heard at USD 362-365/MT from UK. Local scrap and ship breaking plate prices observed upturn this week. While local rebar demand remained weak affecting buying sentiments and Indian sponge iron export offers turned down on weak domestic prices at USD 380/MT, CFR Chittagong.

Taiwan witnesses marginal rise in scrap prices - Price assessment for US origin HMS (80:20) stands at USD 336/MT, CFR Taiwan in containers amid limited trades.

SE Asia markets observe stable imported scrap offers - Japanese H2 offers heard at USD 355-360/MT,CFR Vietnam while Hong Kong offers assessed for HMS 1&2 (50:50) at USD 348-350/MT,CFR Vietnam. Buying activities slows down in Vietnam on sluggish demand for finish steel. Indonesian offers for oversized P&S from Singapore remained stable at USD 382-385/MT, CFR Jakarta.