Global Ferrous Scrap Market Overview - Week 19, 2019

Japan’s monthly Kanto tender confirmed Japanese prices to have reached the bottom. US bulk scrap prices fell sharply in recent bulk deals to South Korea and Bangladesh. Asian containerized scrap prices showed collective downtrend on bearish sentiments and low demand.

Turkey scrap import prices drop USD 10/MT in recent deals - Buying activity was low amid starting of Ramadan month, political uncertainty and currency weakening in the starting of the week. However, Turkish steel mills booked deep sea cargoes actively towards the closing of the week as they achieved desired prices.

Recently, a Marmara based steelmaker booked a bulk cargo from US comprising 33,000 MT HMS 1&2 (80:20) at USD 290/MT, 6,000 MT of Shredded at USD 295/MT and 3,000 MT of Bonus at USD 300/MT, CFR Turkey. European cargo sold comprising HMS 1&2 (80:20) at around USD 285/MT and Bonus scrap at USD 295/MT, CFR.

Assessment for US origin HMS 1&2 scrap stands at USD 290/MT, CFR Turkey, down USD 10-12/MT as against last week. While an assessment of Europe origin stands at around USD 283-285/MT, CFR. A premium of US material over Northern European scrap stands at around USD 5-7/MT.

Japan’s Kanto scrap export tender in May'19 fetches bids down USD 15.5 - Japan’s monthly ferrous scrap export tender ‘Kanto Tetsugen’ concluded on 10th of May’19, a total 22,000 MT of H2 scrap auctioned in four winning bids presented at an average of JPY 30,597/MT (USD 279), FAS, down JPY 1,703/MT witnessing a second successive monthly fall in average bids by around USD 15/MT. Following tender's result fetched above than expected, Japanese scrap prices likely to show recovery as steelmakers with limited inventories are expected to increase their purchases keeping prices supportive in the near terms.

Japan’s Tokyo Steel cuts scrap purchase price by USD 5 - Tokyo Steel resumed operation after Golden Week Holidays and lowered domestic scrap purchase price, effective from 9th May, observing a price cut of JPY 500/MT (USD 5) at all five works in Japan. The company pays JPY 29,000/MT (USD 263) for H2 scrap delivered to Utsunomiya plant in Kanto region, hitting the lowest price in 2 years. Other EAF steelmakers are likely to restock inventories in coming days keeping prices supportive.

South Korean Hyundai Steel booked two bulk scrap cargoes - Hyundai Steel booked two bulk US origin ferrous scrap cargoes comprising 40,000 MT and 43,000 MT from Schnitzer and SIMS recyclers US at an average equivalent price of (HMS 1) USD 312/MT, CFR South Korea. Bulk scrap prices from US suppliers have been observed a sharp fall of around USD 17/MT as against previous bulk bookings in Apr19.

Hyundai’s last bid for Japanese H2 scrap was at JPY 31,000/MT (USD 278) on 26th April before starting of Golden Week holidays, while another update in the purchase bid from the company is awaited.

Indian imported scrap trades in containers remain bearish - Buying interest for imported scrap remained low on account of ongoing elections and easy availability of other alternatives like sponge iron and local scrap amid bearish sentiments in the domestic finished steel market. Few importers eye low priced scrap below USD 300/MT, CFR levels on lowering of global scrap prices sharply towards the closing of the week.

Assessment for containerized Shredded from Europe, UK and US stand at USD 325-332/MT, CFR Nhava Sheva with limited trades reported in the lower range USD 325-327/MT, CFR. Offers for South African HMS 1&2 and Dubai HMS 1 stand at USD 330/MT and USD 327-330/MT, CFR respectively. Assessment of West African HMS 1&2 in 20-21 MT containers stand at USD 305-310/MT, CFR Nhava Sheva.

Domestic HMS 1&2 (80:20) price assessment lowered by INR 200-300/MT on weekly basis to INR 24,800-25,000/MT (USD 359-362), ex- Mumbai and by INR 400-500/MT to INR 23,600-23,800/MT, CFR Chennai.

South East Asian scrap prices marginally down on W-o-W - US origin imported HMS (80:20) prices reported around USD 280-285/MT, CFR Taiwan while in 20ft containers at USD 300-305/MT, CFR Jakarta. P&S in 20ft containers were being offered around USD 345-348/MT, CFR Surabaya Indonesia. US origin HMS 1&2 in bulk was being offered around USD 315-320/MT, CFR Vietnam.

Pakistan imported scrap prices fall in recent deals - Imported scrap offers in containers to Pakistan dropped throughout the week following falling global scrap offers. In the opening of the week, offers for Shredded scrap stood at USD 327-332/MT, CFR Qasim, down USD 4/MT against last week closing, but further dropped to USD 323-325/MT, CFR by the closing of the week and decent bookings were witnessed at this price range on low inventories.

Assessment for Dubai origin, HMS 1 remained rangebound USD 327-332/MT, CFR on limited availability due to Ramadan labour shortage while South African HMS 1&2 at USD 330/MT, CFR Qasim.

Domestic prices fall on low demand as scrap equivalent to Shredded price dropped by PKR 1500 at PKR 61,000-61,500/MT (USD 431-435) while Deformed bar (G-60) price dropped by PKR 500/MT at 97,000-98,000/MT ex works.

Bangladesh bulk scrap import prices drop in a deal reported - A bulk mixed scrap cargo from US was booked by leading Bangladesh mill on last week closing at USD 325/MT, CFR for Shredded and USD 320/MT for HMS, at a considerably lower price (by USD 10-15) against previous week’s bookings.

Due to low demand for finished steel amid starting of Ramadan, scrap bookings through containers remained limited. Assessment for Shredded scrap from USA/UK dropped USD 5-10 from last week and stands at USD 340-345/MT however, limited offers available. HMS 1 offers from South America remained stable at USD 335-338/MT while P&S assessment stands at USD 355-360/MT.

Domestic scrap continued to decline W-o-W with shipyard scrap prices assessed at BDT 35,000-35,500/MT (USD 414-420) & Local melting scrap prices in the range of BDT 33,000-33,500/MT, ex-works inclusive of taxes.