Global Ferrous Scrap Market Overview - Week 12, 2019

On the other hand, Japanese scrap prices have remained flat turning participants to anticipate more on a short term price peak. Vietnamese prices showed marginal softening on low demand. Asian markets observed limited trades on volatile domestic fundamentals at almost steady prices. While Shagang steel’s scrap prices remain unchanged in China.

Turkey scrap importers book more deep-sea cargoes - Turkey based steel mills booked 4-5 more cargoes for May and remaining end April shipments at range-bound prices this week. According to SteelMint’s price assessment, US origin HMS (80:20) scrap stands at USD 325/MT, CFR Turkey. While HMS 1&2 (80:20) of Europe origin stands at around USD 318-320/MT, CFR.

In a recent deal, US supplier sold a cargo comprising 15,000 MT of HMS 1&2 (80:20) at USD 325/MT and 15,000 MT Shredded at USD 330/MT, CFR Turkey. While in another deal confirmed, an Iskenderun based steelmaker booked 19,000-20,000 MT HMS 1&2 (80:20) at USD 325/MT, 7-8,000 MT Shredded at USD 330/MT and 3,000 MT of Bonus at USD 335/MT, CFR Turkey. There seems upward pressure on buying prices as supply remains tight.

Japanese domestic scrap prices to reach short term peak?  Japan’s leading EAF steel mini-mill, Tokyo Steel hiked domestic scrap purchase price by JPY 500/MT (USD 4.5) at two of its facilities for all grades effective from 20th Mar'19. However, the company keeps price stable at JPY 35,000/MT (USD 314) for H2 scrap delivered to Utsunomiya plant in the Kanto the region, Tahara in the central area and Kyushu in western Japan. Reports anticipate that no change in Utsunomiya’s price since last two week’s indicate prices to have reached a short term peak in Japan.

South Korean Hyundai Steel books Russian bulk scrap cargo - After discontinuing spot purchases of Japanese scrap last week, South Korean leading steelmaker Hyundai Steel booked a Russian bulk scrap cargo comprising 20,000 MT equivalent A3 scrap at an average USD 337/MT, CFR South Korea. As per SteelDaily’s report, prices moved up USD 10/MT against last Russian bulk scrap contract at USD 327/MT, CFR towards closing Feb’19. While US bulk HMS 1 offers continued hovering around USD 350/MT, CFR South Korea.

China’s domestic scrap prices stable - China’s largest private scrap consumer, Shagang Steel has maintained scrap prices unchanged at RMB 2,620/MT (USD 390) inclusive of 16% VAT for HMS (6-10 mm thickness) in Zhangjiagang this week.

Indian imported scrap market silent on holiday mood - Indian scrap importers remained less active in the market amid festival holidays. Weakened local steel sentiments and incoming election winds affected buying interest keeping buyers away from booking in large volumes. SteelMint’s assessment for containerized Shredded stands in the range USD 333-335/MT, CFR Nhava Sheva. HMS 1 from Dubai assessed at around USD 323-325/MT, CFR while West African HMS 1&2 prices have softened marginally to USD 300-305/MT, CFR Mundra. Domestic scrap prices in Mumbai and Chennai markets remained rangebound on W-o-W basis with today's HMS assessment at INR 24,800-25,000/MT, ex- Mumbai (USD 359-361). Indian scrapped ship buyers, despite the volatility in the local market, reported having concluded considerable sales of around 45,000 LDT volume ahead of fiscal year end and successive strengthening of Indian Rupee against USD.

Pakistan’s scrap importers book imported scrap at stable prices - SteelMint’s price assessment for Shredded scrap stands at around USD 337-338/MT, CFR Qasim amid improved buying interest. Asking rates for Shredded from UK and Europe reported in the range USD 337-340/MT, CFR and HMS 1 from UAE assessed stable at USD 325-330/MT, CFR. Brazil and UK origin 4a/4c grade scrap sold at around USD 355/MT, CFR. While on the back of increased costing, Bala billet prices increased further by PKR 2000/MT to PKR 77,000-77,500/MT (USD 549-553) while rebar prices increased slightly against last weeks’ report.

Bangladesh imported scrap market remains standstill - SteelMint's price assessment for Shredded scrap corrected marginally to USD 345-350/MT, CFR Chittagong on overall weak demand. Containerized HMS 1 from Chile and Brazil traded at around USD 335/MT, CFR. Shipyard scrap prices assessed at BDT 37,000-37,500/MT (USD 440-447) ex-yard. Participants remained hesitant about local steel demand as rains are likely to start in the upcoming weeks affecting construction activities in the country.