Global Ferrous Scrap Market Overview - Week 47, 2018

Turkey’s steel mill booked a European cargo at tumbled prices. China’s Shagang steel slashed scrap prices twice amid sharply falling finish steel and billet prices. Japanese scrap prices crashed further on another price cut from Tokyo Steel while South Korean steel mills booked Japanese scrap amid falling domestic scrap prices. All Asian markets continued downtrend following global prices and weak domestic support. US market remained flat amid Thanksgiving holidays this week.

Turkey imported scrap prices tumble USD 8/MT - Turkish scrap prices observed downward pressure on weak rebar sales and renewed possibility of Chinese exports this week. A steel mill booked a European cargo, comprising 20,000 MT of HMS 1&2 (75:25), 10,000 MT of HMS 1 and 5,000 MT of Busheling scrap at an average price of USD 325/MT, CFR Turkey. According to SteelMint’s price assessment, USA origin HMS (80:20) scrap stands at around USD 327-328/MT, CFR Turkey, sharply down by USD 8/MT W-o-W. While HMS 1&2 (80:20) for European origin heard at USD 318-320/MT, CFR.

Tokyo Steel makes sixth scrap purchase price cut in Nov’18 - Japan’s leading EAF steel mini-mill Tokyo Steel announced another cut resulted in further drop of JPY 500-1000/MT (USD 4-9) effective from 23th Nov. Prices for H2 fell 1 year low for largest plant Tahara at JPY 32,500/MT and for Utsunomiya plant at JPY 33,500/MT in the Kanto region. Bids for same grade noted at JPY 31,500/MT for its Takamatsu steel center and JPY 34,000/MT for Kyushu plant.

China’s Shagang Steel cuts scrap purchase price twice on falling steel prices - Shagang Steel slashed its scrap purchase price twice by RMB 50/MT and RMB 60/MT on 20th & 22nd Nov this week. It is paying RMB 2,620/MT inclusive of 16% VAT for HMS (6-10 mm thickness) in Zhangjiagang, total RMB 110/MT down as against last weeks’ report. Shagang also reduced its rebar and wire rod prices by RMB 150-180/MT for late Nov shipments. While China’s billet and rebar export prices fell successively by total around RMB 250-300/MT over this week.

South Korean Hyundai Steel books Japanese H2 after 4 months’ gap - Hyundai Steel slashed bids for Japanese scrap by JPY 1,000/MT (USD 9) as against last weeks’ report. High grade Shindachi booked at JPY 39,500/MT (USD 350), FoB While Japanese H2 booked at JPY 31,500/MT (USD 279), FoB after almost a 4 months’ gap. Earlier there were reports that company might not bid for Japanese H2 till Jan’18 expecting that purchase requirement might not have recovered for low-mid grade scrap. However, following crashing down of Japanese prices by around USD 35-53/MT in a months’ time, South Korean steel mills turned active for Japanese scrap.

Vietnamese scrap importers silent amid falling HRC prices - On sharply declined HRC export offers from Formosa Steel, scrap buyers remain holding back purchases in Vietnam. Offers for Japanese H2 assessed at USD 325-327/MT, CFR. Hong Kong origin HMS 1&2 (50:50) stands at USD 320-322/MT, CFR Vietnam and deep-sea HMS 1&2 (80:20) in containers at around USD 315-317/MT, CFR Hai Phong, down USD 5/MT as against last report. Other Southeast Asian countries such as Thailand, Indonesia and Malaysia have also started to slow down their steel purchases on approaching year-end festivities.

Taiwanese scrap prices fall below USD 300/MT,CFR levels - Price assessment for USA origin HMS (80:20) stands at around USD 295/MT, CFR Taiwan in containers, down USD 5-8/MT as against USD 305-306/MT, CFR levels last week. Weak downstream prices and availability of cheaper alternative led scrap market to turn silent in Taiwan.

Indian imported scrap prices drop, buyers eye further correction - Indian scrap market remained stalled on dull sentiments in local finish steel market. Strengthening of INR against USD and sharply falling scrap prices outside India prompted importers to wait despite rising enquires. Buyers eye further price drop to secure more scrap. Local scrap prices moved down in major markets except Eastern & Central region where HMS and ship plate prices remain supported this week.

Offers for containerized Shredded from Europe and UK moved down in the range USD 347-355/MT, CFR as against USD 355-360/MT, CFR last week, down USD 8-10/MT W-o-W. Limited trades concluded this week for Dubai HMS 1 at USD 330-335/MT, CFR Nhava Sheva. West African HMS 1&2 assessment stands at around USD 318-320/MT, CFR Mundra.

Pakistan’s scrap buying interest stands below current offers - A massive protest staged against ban on high-rise construction from builders association ended yesterday with KWSB assurance about issuance of pending NOC to builders within a week. Containerized Shredded 211 from Europe and UK heard in the range of USD 345-350/MT, CFR Qasim, down USD 10/MT W-o-W with buying interest heard at USD 340/MT, CFR. Dubai based HMS 1 traded in minor volumes at USD 335-340/MT, CFR. South African HMS 1&2 assessment remains at around USD 345/MT, CFR Qasim. Non availability of bricks over closure of the factories on heavy smog, liquidity crunch and hindered movement in the steel local market led the industry into very bad situation.

Bangladesh market holds awaiting general election in Dec’18 - Offers for containerized Shredded 211 heard in the range USD 365-368/MT, CFR Chittagong. HMS 1 offers moved down at USD 340-345/MT, CFR. Local scrap prices move up BDT 500-1000/MT amid shortage in the local market while ship plate prices remained firm. Finish steel market holds unchanged leading to witness slowdown in activities. Indian sponge iron export prices assessed firm around USD 365/MT, CFR Chittagong on recovering INR against USD. The shortage of USD in the country led to inability of end buyers to open new LCs in Chittagong’s ship breaking market.