Global Ferrous Scrap Market Overview - Week 50, 2018

Japanese prices continued further downtrend following a sharp fall in Kanto monthly export tender. Tokyo Steel slashed scrap prices twice. South Korean Hyundai Steel booked a bulk cargo from the US while slashed bids for Japanese scrap further. On the other hand, prices in major Asian markets like India, Pakistan, Bangladesh, Vietnam and Taiwan corrected marginally amid very limited trades concluded this week.

Turkey observed no significant deal concluded this week - Amid less clarity on global steel dynamics and weak demand in the finish steel markets, Turkish steel mills have continued to remain away from scrap buying. Since 23rd Nov, domestic steel mills have observed a single European cargo booked at an average price of USD 304/MT during the last week. SteelMint’s price assessment for HMS 1&2 (80:20) from Europe stands at around USD 300-302/MT, CFR Turkey, and that of US origin at USD 307-308/MT, CFR almost flat on W-o-W.

Tokyo Steel cuts scrap purchase price twice this week - Japan’s leading EAF steel mini-mill Tokyo Steel announced two more price cuts on 12th Dec and 14th Dec resulting in a total drop of JPY 1000-1500/MT (USD 9-14) at Western Japan works. But H2 prices stand stable at JPY 30,500/MT at largest plant Tahara and JPY 31,500/MT at Utsunomiya plant in the Kanto region.

Japan’s Kanto Tender fetches bid lower by USD 39 in December - ‘Kanto Tetsugen’- monthly ferrous scrap export tender concluded on 11th Dec observed a total of 20,000 MT H2 auctioned in the four winning bids presented. Average bids recorded at JPY 29,478/MT (USD 261), FAS in Dec’18 which have edged down by JPY 4,397/MT (USD 39) M-o-M as against JPY 33,875/MT (USD 297), FAS in Nov’18. Average bids for Kanto tender dropped below JPY 30,000/MT for the first time since JPY 28,000/MT levels last in Jul’17.

China’s Shagang Steel raises scrap purchase price by USD 14 - China’s largest scrap consumer, Shagang Steel increased scrap purchase price by RMB 100/MT on rising domestic finish steel prices amid new orders of capacity cuts in Tangshan and Xuzhou this week. Shagang is paying RMB 2,520/MT (USD 365) inclusive of 16% VAT for HMS (6-10 mm thickness) in Zhangjiagang. However, the steelmaker rolled over its finish steel prices for mid-December shipment.

South Korean Hyundai Steel cuts bid for Japanese scrap, books US cargo - Hyundai Steel slashed bids for Japanese scrap by JPY 500/MT (USD 4) as against last weeks’ report. Bid for H2 fall to 16-month low levels at JPY 29,500/MT, FoB. It has also contracted for total 45,000 MT of US scrap equivalent to HMS 1 at USD 325/MT, CFR South Korea. Prices have moved down by USD 10/MT as against the last deal concluded for US bulk scrap at USD 335/MT for January shipment.

Vietnamese scrap prices edge down in recent trades - Vietnam observed almost no buying from the steel mills in the Northern region. In the South, a steel mill booked around 10,000 MT H2 from Japan at around at USD 297/MT, CFR. Another leading steelmaker bought Hong Kong origin HMS 1&2 (50/50) at USD 301/MT, CFR. According to SteelMint’s assessment, HMS 1&2 (80:20) scrap stands at around USD 323-328/MT, CFR Vietnam from USA and Europe.

Taiwanese scrap prices correct amid dull demand - Price assessment for USA origin HMS (80:20) stands at around USD 283-287/MT, CFR Taiwan in containers, inch down as against the last week. In Thailand, buying interest for HMS 1&2 scrap from Central America and West Africa origin stands at around USD 300/MT, CFR.

Indian imported scrap market turns silent on weak demand - Despite the marginal correction in offers, Indian scrap buyers stepped back amid bearish sentiments and less clarity on global prices this week. Suppliers may turn silent from the next week on seasonality concerns and New Year holidays. SteelMint’s assessment for containerized Shredded stands flat at around USD 340/MT, CFR Nhava Sheva. Limited trades for Dubai HMS 1 concluded at around USD 327-330/MT, CFR. Assessment for South Africa HMS 1&2 stands at USD 335-340/MT, CFR and West African scrap at around USD 310-315/MT, CFR.

Pakistan’s imported scrap offers inch down, buyers in ‘wait and watch’ mode - After lifting up of the ban on high rise building in Karachi Pakistan market turns hopeful for pick up in some activities. Offers for containerized Shredded scrap heard in the range USD 335-337/MT, CFR but buyers remained looking for USD 328-333/MT, CFR levels. Most of the buyers keep clearing existing stocks before they start restocking. Dubai HMS 1 was being offered stable in the range USD 330-335/MT, CFR. Local steel prices still stand to the lower side amid dull sentiments after currency depreciation and overall very fewer sales in the domestic market.

Bangladesh imported scrap prices fall in recent trades – Some trades concluded for containerized Shredded from Australia at USD 350-352/MT, CFR Chittagong this week. P&S scrap offers moved down to USD 345/MT, CFR levels. While HMS 1&2 from Chile, Brazil and other origin was being offered in the range USD 325-330/MT, CFR for Jan-Feb shipment. Local scrap prices remained almost stable but ship plate prices have corrected further. Sentiments turned weak amid sluggish movement in the local finish steel market. Indian sponge iron export offers fall to USD 345-350/MT, CFR Chittagong levels.