Global Ferrous Scrap Market Overview - Week 13, 2019

Japan’s Tokyo Steel lowered scrap prices at Utsunomiya works in the Kanto region. South Korean Hyundai Steel turned active for Japanese scrap observing bulk volume getting booked at reduced prices ahead of Golden Week holidays in Japan. Chinese scrap prices showed on weakening finished steel market sentiments. South Asian markets in Pakistan and Bangladesh observed pick up in activities despite high offers while the Indian market remained slow amid financial year closing and ahead of the election.

Turkey scrap importers book more cargoes at corrected prices - Turkey based steel mills continued buying imported scrap at corrected prices. However, volatile currency and political instability keep importers hesitant. According to SteelMint’s price assessment, US origin HMS (80:20) scrap stands at USD 321-322/MT, CFR Turkey. While HMS 1&2 (80:20) of Europe origin stands at around USD 315-316/MT, CFR.

In a recent deal, Baltic supplier sold a cargo comprising 26,000 MT of HMS 1&2 (80:20) at USD 319/MT and 4,000 MT Bonus at USD 329/MT, CFR Turkey for second half April shipment. Now steel mills target lower offers of USD 310-315/MT, CFR for HMS 1&2 (80:20).

Japan’s Tokyo Steel cuts scrap purchase price at Utsunomiya - Japan’s leading EAF steel mini-mill, Tokyo Steel lowered domestic scrap purchase price by JPY 500/MT (USD 4.5) at Utsunomiya plant in the Kanto region, the company pays JPY 34,500/MT (USD 309) for H2 scrap delivered to Utsunomiya plant while JPY 35,000/MT at Tahara in the central area and Kyushu in western Japan. Difficulties in procurement and delivery of steel scrap and finished steel products during Golden week holidays along with labour shortage are deepening worries of steelmakers in the market.

South Korean Hyundai Steel resumes bids for Japanese scrap, books massive volume - South Korean leading steelmaker Hyundai Steel resumed open bids for Japanese scrap after almost 3 months’ period. It presented bids for H2 at JPY 34,000/MT, (USD 308) FoB Japan. Bids for Shredded scrap stand at JPY 38,000/MT (USD 344) and Shindachi Daichibara at JPY 39,000/MT, FoB Japan. According to SteelDaily’s report, the company has booked 100,000 MT Japanese scrap out of which 60,000 MT is H2 and H1 scrap while it booked a Russian bulk cargo comprising 50,000 MT at USD 341/MT, CFR South Korea.

China’s Shagang steel lowers scrap purchase price by USD 6/MT - Eastern China’s largest private ferrous scrap consumer and EAF steelmaker - Shagang Jiangsu Steel group lowered steel scrap purchase prices for all grades by RMB 40/MT (USD 6) to RMB 2,580/MT (USD 383) inclusive of 16% VAT for HMS (6-10 mm thickness) delivered to headquarter works situated in Zhangjiagang. A trade source shared that the downward pressure on steel scrap price in China lies in its relatively higher price previously and the price of finished steel which is under pressure presently. Scrap prices might have lowered amid mills' willingness to demand is lower and due to cost control.

Indian imported scrap market observes lackluster activities on upcoming election - India's imported scrap activities remained limited on poor cash flow amid financial year closing and the upcoming election. Domestic steel sentiments remain volatile on fluctuating INR against USD. Offers edged up marginally against last week on tight supply situation and pickup in demand from other subcontinent markets. SteelMint’s assessment for containerized Shredded stands in the range USD 335-340/MT, CFR Nhava Sheva. HMS 1 from Dubai traded at around USD 328-330/MT, CFR while West African HMS 1&2 prices climbed to USD 310/MT, CFR Mundra and 315/MT, CFR Chennai on improved interest from Bangladesh. HMS 1 from the UK was being offered at around USD 320-322/MT, CFR.

Pakistan imported scrap prices up on improved local steel prices - Sources shared that Pakistan scrap importers have turned active on improving local steel prices and less inventories in hand ahead of Ramadan slowdown. A trading company confirmed trade of 5,000 MT Shredded scrap from UK & Europe in containers at USD 340-342/MT, CFR Port Qasim. SteelMint’s price assessment for Shredded scrap stands at around USD 340/MT, CFR Qasim. Asking rates for Shredded from UK and Europe reported in the range USD 340-342/MT, CFR.HMS 1 from UAE is assessed at USD 330-335/MT, CFR and Bala billet prices were reported last at around PKR 80,000-80,500/MT (USD 549-553), ex-work inclusive of local taxes.

Bangladesh imported scrap prices edge up after bulk bookings - After witnessing two bulk bookings Bangladesh observed pick up in buying interest in the market however, local sentiments remained almost the same since a past couple of weeks. Limited bookings heard as finish steel demand remained skeptical on starting of Rainy season SteelMint's price assessment for containerized Shredded scrap stands at USD 350-355/MT, CFR Chittagong. Containerized HMS 1 from Chile and Brazil is being reported at around USD 335-340/MT, CFR. Shipyard scrap prices assessed at BDT 37,500-38,000/MT (USD 445-451) ex-yard.