Global Ferrous Scrap Market Overview - Week 16, 2019

Japanese scrap prices continued sharp downtrend on weak demand ahead of Golden week holidays. South Asian markets observed slow demand amid ongoing election in India. Vietnam eyes further price correction while Indonesia observed improved trades amid positive outlook on steel demand after the precedential election.

Turkey imported scrap prices recover after US deal - Turkey based steel mills resumed imported scrap bookings from both US and European suppliers this week at recovered prices by USD 5-6/MT on weekly premises. However, deals remained limited on weak finish steel demand and political uncertainty. According to SteelMint’s price assessment, US origin HMS (80:20) scrap moves up to USD 312-313/MT, CFR that of Europe origin stands at around USD 308/MT, CFR Turkey.

Samsun region based steel mill booked a total 30,000 MT cargo from US recycler comprising 18,000 MT HMS 1&2 (80:20) at USD 312.5/MT, 10,000 MT of Shredded at USD 317.5/MT and 2,000 MT of Bonus scrap at USD 322.5/MT, CFR.

Japan’s Tokyo Steel makes 3 scrap purchase price cuts this week - Japan’s leading EAF steel mini-mill, Tokyo Steel lowered domestic scrap purchase price successively each effective from 16th, 18th and 20th April. The company now pays JPY 30,000/MT (USD 268) a record low of more than 18 months, for H2 scrap delivered to Utsunomiya plant in Kanto region, sharply down a total JPY 2,500/MT (USD 22) against last week. Japanese scrap prices may remain lower side amid dull sentiments as production activities are expected to be slow due to the upcoming golden week holidays from 26th April.

South Korean Hyundai Steel cuts bid for Japanese scrap by USD 9 - South Korean leading steelmaker Hyundai Steel lowered open bids for Japanese scrap by JPY 1,000/MT against last week. It presented bids for H2 at JPY 31,500/MT (USD 281) FoB Japan. Leading steelmakers in South Korean lowered domestic scrap prices successively by KRW 10,000-15,000/MT (USD 9-13) against last week. Dongkuk Steel booked a Russian bulk cargo at USD 321/MT, CFR while Hyundai Steel and Dongkuk steel both reported to have booked US bulk cargoes at around USD 329-330/MT, CFR South Korea.

No revision seen in China’s Shagang Steel scrap purchase price - Eastern China’s largest private ferrous scrap consumer, Shagang Steel kept steel scrap purchase prices stable, however, domestic scrap prices in China maintained slow uptrend on improving Chinese steel prices and futures. Last week it had raised prices by RMB 80/MT (USD 12).

Indonesian imported scrap market remains active - Containerized P&S scrap sold at around USD 347-350/MT, CFR Surabaya. While US origin Shredded scrap at around USD 320/MT, CFR Jakarta. Polls suggest that Widodo leads presidential race which may result in increasing Chinese infrastructural investment and better support to the steel industry in the near future.

Vietnam imported scrap prices fall on weak demand - According to sources, a northern steel mill booked bulk Hong Kong origin HMS 1&2 (50:50) at USD 332/MT, CFR. While offers for HMS 1&2 from Hong Kong are mostly being quoted at USD 330-335/MT, CFR down USD 5/MT W-o-W. Japanese H2 bulk offers reported at around USD 325-330/MT, CFR, HS at USD 370/MT and for Shredded at USD 360-365/MT, CFR Vietnam.

Indian scrap prices flat on limited demand - Indian market observed limited inquiries for imported scrap amid ongoing elections. Minor trades for low priced scrap picked up amid revival of global scrap prices. Major steelmakers remained away from buying higher priced scrap preferring domestic scrap and sponge Iron on easier and cheaper availability.

SteelMint’s assessment for containerized Shredded from UK, Europe and US stands stable in the range USD 332-335/MT, CFR Nhava Sheva. HMS 1 from Dubai traded at levels of around USD 325-330/MT, CFR West African HMS 1&2 in 20-21 containers traded at USD 310/MT, CFR Mundra and 313-315/MT, CFR Goa and Chennai.

Price assessment of local HMS 1&2 (80:20) scrap stands stable at INR 25,000-25,200/MT (USD 361-364), ex- Mumbai and INR 24,500-24,700/MT, CFR Chennai against last week report.

Pakistan imported scrap prices inch up in recent trades - Pakistan scrap importers picked buying towards second half this week on anticipation of a further hike in Turkey prices. Containerized Shredded sold from UK and US at around USD 332-335/MT, CFR and HMS 1&2 from South Africa as high as USD 335/MT, CFR. Asking rates for Shredded from suppliers were quoted in the range USD 335-337/MT, CFR Qasim, up USD 3-5/MT against last week. UK origin HMS 1 sold at around USD 322-323/MT, CFR.

Pakistan Steel Melters Association issued the resolution for ‘not to pay withholding tax’ in order to highlight the Government to take positive initiatives regarding the steel industry’s tax-related issues. Local steel prices for bala billet and local scrap moved down PKR 1,000-2,000/MT (USD 7-14) on weekly premises on weakened demand. SteelMint’s assessment of local billet stands at PKR 79,000-80,000/MT (USD 558-565) ex-works.

Bangladesh imported scrap market in ‘Wait and Watch’ mode - Shredded scrap offers are being quoted in the range of USD 345-350/MT, CFR Chittagong. However, buying interest remains limited on fall in domestic scrap prices and increased supply in ship breaking markets. Containerized HMS 1 from Chile and Brazil stands at USD 335-340/MT, CFR. While local HMS scrap prices moved down further to BDT 36,000/MT, ex-yard inclusive of local taxes. A possibility of hike in tariffs on local steel plates post-budget in Bangladesh keeps recyclers to continue importing vessels in Chittagong’s market before the imposition of these new taxes.