Global Ferrous Scrap Market Overview - Week 14, 2019

Tokyo Steel continued lowering scrap purchase prices amid weakening Japanese domestic sentiments further. South Korean Hyundai Steel lowered bids for Japanese scrap and booked US bulk cargoes at sharply dropped prices against the last contract. Chinese Shagang Steel lowered scrap prices further. Indian scrap importers remained slow ahead of elections while Pakistan and Bangladesh remained comparatively active witnessing trades at lower prices.

Turkey imported scrap prices fall around USD 10/MT on W-o-W - Turkey based steel mills hold back scrap trades this week amid political uncertainty on the election and subdued finish steel demand. According to SteelMint’s price assessment, US origin HMS (80:20) scrap moves down to USD 311-312/MT, CFR Turkey. While HMS 1&2 (80:20) of Europe origin stands at around USD 306-308/MT, CFR. In a single European deal confirmed, a cargo comprising 12,000 MT of HMS 1&2 (75:25) at USD 304/MT, CFR Turkey. Steel mills are likely to wait for IREPAS meeting which will be held on April 7-9 in Spain to have more clarity on the market to resume deep-sea bookings.

Japan’s Tokyo Steel cuts scrap purchase price twice this week - Japan’s leading EAF steel mini-mill, Tokyo Steel lowered domestic scrap purchase price on 3rd and 5th April by JPY 1000/MT (USD 9) at Utsunomiya works. While prices at remaining four works dropped by JPY 500/MT (USD 4.5) against last week in Japan. The company pays JPY 32,500/MT (USD 292) for H2 scrap delivered to Utsunomiya plant while JPY 34,500/MT at Tahara in the central area and Kyushu in western Japan. Participants believe that Tokyo's price cut likely to impact Japan's Kanto monthly scrap export tender which has scheduled next week on 10th April.

South Korean Hyundai Steel cuts bid for Japanese scrap, books bulk cargoes from US - South Korean leading steelmaker Hyundai Steel lowered open bids for Japanese scrap by JPY 1,000/MT after booking massive volume of around 100,000 MT last week. It presented bids for H2 at JPY 33,000/MT (USD 296) FoB Japan. Bids for Shredded and HS at JPY 37,000/MT (USD 344) and Shindachi Daichibara at JPY 38,000/MT, FoB Japan. According to SteelDaily's reports, the company seems to have contracted only for 55,000 MT of Japanese scrap out of the total 160,000 MT bids offered this week. While it booked two US bulk cargoes comprising 40,000 MT from Schnitzer steel and 45,000 MT from SIMS respectively at an average price of (HMS 1) USD 333/MT, CFR South Korea.

China’s Shagang steel lowers scrap purchase price by USD 6/MT - Eastern China’s largest private ferrous scrap consumer - Shagang Jiangsu Steel group lowered steel scrap purchase prices on 1st April for all grades by RMB 40/MT (USD 6) to RMB 2,540/MT (USD 379) inclusive of VAT for HMS (6-10 mm thickness) delivered to headquarter works situated in Zhangjiagang. A trade source shared that Chinese steel manufacturers were paying 16% VAT which has now been lowered to 13% by the Chinese government which may aid steel mills in overall input cost for steelmaking. The average price of steel products may correct as the benefit of lowering of tax to be passed down to the end products.

Vietnam steel mills book bulk scrap cargoes from Japan - According to sources report, Southern Vietnamese steel mills booked Japanese bulk H2 scrap comprising around 18,000 MT at USD 330/MT, CFR and another bulk cargo of H1&2 (50:50) at USD 335/MT, CFR. Hong Kong origin bulk H1&2 (50:50) was being offered in the range USD 338-340/MT, CFR.

Indian imported scrap trades remain slow ahead of elections - Indian imported scrap market observed slow trades on upcoming elections and less cash inflow. Prices for Shredded scrap corrected marginally while that of Dubai HMS 1 remained almost flat against last week. SteelMint’s assessment for containerized Shredded from UK, Europe and US stands in the range USD 332-335/MT, CFR Nhava Sheva. HMS 1 from Dubai traded at stable levels of around USD 328-330/MT, CFR while suppliers were quoting in the range USD 330-333/MT, CFR depending on origin. P&S scrap sold at USD 345-347/MT, CFR. West African HMS 1&2 in 20-21 containers traded at USD 305/MT, CFR Mundra and 310-313/MT, CFR Goa and Chennai.

Pakistan observes imported scrap trades at lower prices - Sources shared that Pakistan scrap importers remained active on improved local steel prices and for restocking ahead of Ramadan. In recent trades, containerized Shredded 211 scrap from UK/EU sold at around USD 333-335/MT, CFR Qasim. Asking rates for Shredded from USA and UK is being reported in the range USD 330-335/MT, CFR. HMS 1 from UAE is assessed at USD 332-335/MT, CFR depending on quality. Bala billet prices were reported last at around PKR 80,500-81,000/MT (USD 549-553), ex-work inclusive of local taxes. Currency depreciation may result in a hike in steel prices in coming days. Also, petroleum prices in the country have been increased by 8-10% which may pull steel prices further.

Bangladesh imported scrap prices down on dull domestic sentiments - SteelMint's price assessment for containerized Shredded scrap stands at USD 345-350/MT, CFR Chittagong down USD 5-7/MT against last week. Scrap yards based in UK and Australia were offering Shredded in the range of USD 350-354/MT, CFR but no major deal confirmed. Containerized HMS 1 from Chile and Brazil is being reported at around USD 340-343/MT, CFR. Shipyard scrap prices assessed at BDT 37,500-38,000/MT (USD 445-451) ex-yard. After observing a quarter of bullish activities, activities in Bangladesh ship breaking industry seemed to be slowing down over the last weeks’ time.