Global Ferrous Scrap Market Overview - Week 18, 2019

Japanese market remained silent on Golden week holidays with no price revision made from Tokyo Steel and South Korean Hyundai Steel for Japanese scrap. South Asian steel mills turned active for bulk scrap bookings with two deals concluded to Bangladesh while East Asian markets continued marginal softening in prices in Vietnam and Indonesia as the week progressed.

Turkish scrap importers eye below USD 300/MT levels - A single major deal reported for June delivery on 30th April in which US-based supplier sold a cargo comprising 22,000 MT HMS 1&2 (90:10) at USD 305.50/MT, 13,000 MT of Shredded at USD 308.50/MT and 5,000 MT of Bonus scrap at USD 313.50/MT, CFR. Very limited deals are being reported amid no considerable recovery observed in finished steel demand and slowdown for Ramadan to start shortly. Steel mills started looking for scrap below USD 300/MT levels following fall in billet prices in Turkey.

Indian scrap import trades through containers remain limited - Indian imported scrap market has continued observing comparatively limited activities in containers as most of the buyers are in 'wait and watch' mode to see the final outcome of elections.

A bulk cargo booking was learned to be under negotiation by Indian mills from US recycler comprising 30,000-32,000 MT mixed scrap however the bids are around USD 15/MT lower than the current offers and the deal hasn't been confirmed till the time of publication of this report.

SteelMint’s assessment for containerized Shredded from Europe, UK and US stand at USD 330-335/MT, CFR Nhava Sheva. Few offers towards the closing of the week showed further softening below USD 330/MT, CFR amid an expected correction in global scrap prices. Offers for South African HMS 1&2 and Dubai HMS 1 remained almost stable in the range USD 330-333/MT, CFR depending on quality. SteelMint’s assessment of West African HMS 1&2 in 20-21 MT containers stand at USD 310-315/MT, CFR India.

Bangladesh steel mills booked two bulk cargoes - Bangladesh observed limited trades earlier in the week and scrap buying for Ramadan restocking was not on expected lines, due to limited offers, skeptical market and already filled scrap inventories. However later in the week, 2 bulk cargoes were reported to have booked by steel mills, one comprising completely of Shredded being sold at USD 340-345/MT, CFR while the other comprising of mixed grade sold at around USD 335-340/MT, CFR Chittagong.

SteelMint’s price assessment for containerized Shredded scrap from UK & Europe remained in a similar range as last week and stands at around USD 345-350/MT, CFR Chittagong. HMS from South America was offered at USD 335-340/MT, CFR & HMS (80:20) from UK at USD 325-330/MT CFR Chittagong. P&S scrap offers remained at USD 360/MT.

Local melting scrap dropped to around BDT 33,000-33,500/MT (USD 391-397), ex-works inclusive of taxes, amid low demand for finished steel in the country.

Pakistan imported scrap prices soften further; demand slows down - Imported scrap offers to Pakistan softened further as the week progressed with buying interest cooling off on nearing of the Ramadan month. SteelMint’s assessment for containerized shredded scrap from US & UK stand at USD 327-332/MT, from the opening week price of USD 332-335/MT, due to lack of buying interest. Dubai HMS 1 offers were around USD 333-335/MT & offers from Europe for HMS 1&2 around USD 320/MT, CFR. Domestic market remained slow with no significant activities expected this month.

Domestic scrap (equivalent to Shredded) increased to PKR 63,000/MT (USD 445) on limited supply. Bala billet prices stand at PKR 78,500-79,000/MT (USD 554-558) ex-works and domestic rebar prices remained range bound.

South East Asian scrap prices marginally down on W-o-W - US origin imported HMS (80:20) prices reported around USD 285-290/MT, CFR Taiwan and Vietnam while in bulk cargoes around USD 320/MT, CFR Vietnam. P&S from UK was being offered around USD 348-350/MT, CFR Surabaya Indonesia and HMS 80:20 from Brazil traded at USD 308-310/MT, CFR Jakarta. Busheling prices assessed in the range USD 363-365/MT, CFR Indonesia.