Global Ferrous Scrap Market Overview - Week 22, 2019

Following global trend, South Asian markets observed limited trades at slightly corrected prices ahead of Eid holidays next week, while South East Asian countries remain more or less stable with improved buying interest against earlier weeks. China's Shagang steel held domestic scrap prices unchanged.

-- Turkey - Turkish steel mills slowed down scrap purchases this week amid low demand for finish steel witnessing a downturn in prices by USD 8-10/MT against the last week. Last weeks' price rise was shortlived as the disparity between bids and expectations put scrap prices under pressure globally. Steelmakers actively booked scrap cargoes comprising around 200,000 MT last week before moving towards slowdown on Eid holidays next week.

In a recent deal, Baltic origin recycler heard to have sold HMS 1&2 (80:20) at USD 306/MT, CFR Turkey to the Izmir based steelmaker. After normalization, the assessment of US origin HMS 1&2 (80:20) stands at USD 304/MT, CFR Turkey, falling around USD 8-10/MT from last week while Europe origin HMS assessed at around USD 300-302/MT, CFR maintaining the premium of US material over Northern European scrap at around USD 3-4/MT.

-- Japan - Tokyo steel revised domestic scrap purchase price a period of 3 weeks amid dull sentiments in the local market. The new prices effective from 1st June, witnessed a lowering of JPY 500/MT for H2 delivered to Tahara, Kyushu and Okayama works. The company now pays JPY 30,000/MT (USD 276) for H2 scrap delivered at Tahara plant, reaching 5 month low levels while the price for delivery to Utsunomiya plant remains at 29,000/MT.

-- South Korea - Hyundai Steel remained majorly away from scrap import this week, with already filled inventories in hand. The company skipped bidding for Japanese scrap this week. As per last revision in the purchase price bid by the company, H2 scrap purchase price from Japan stands at JPY 30,000/MT, FoB Japan.

-- Taiwan - Feng Hsin Iron & Steel has raised its domestic steel scrap buying price twice this week observing a total hike by TWD 500/MT (USD 16) against the last weeks’ report. The steelmill is paying TWD 9,300/MT (USD 294) for HMS 1&2 (80:20) scrap delivered to its Taichung mill. While SteelMint’s reference price for containerized imported HMS 1&2 (80:20) of US origin stands rangebound at around USD 285/MT, CFR Taiwan.

-- Vietnam - Vietnam imported scrap prices remain almost steady with offers from US suppliers remaining high against last week. SteelMint's assessment of US HMS 1&2 (80:20) in bulk stands at around USD 325/MT, CFR. Few trades of Japanese scrap reported in containers to Vietnam and Indonesia at competitive prices this week.

-- Indonesia - As per sources, offers for P&S scrap from UK stands in the range of USD 345-350/MT, CFR Jakarta while HMS 1&2 (80:20) in 40 Ft containers at around USD 307-310/MT, CFR. Offers slightly increased against last week, however, buying interest stands lower USD 5-10/MT than current offers.

-- India - Indian imported ferrous scrap market witnessed improved trade activities amid increase in demand post the election results, while scrap offers inched down slightly on account of downtrend observed at global levels.

SteelMint’s assessment for containerized Shredded from Europe, UK and US stand in the range USD 330-333/MT, CFR Nhava Sheva, narrowing down by USD 2-3/MT against last week with decent deals reported in this range. Few leading suppliers are offering at USD 335/MT range, CFR Nhava Sheva with limited deals being concluded at these levels

Offers for HMS scrap from UK and Europe remain range bound at USD 310-320/MT, CFR depending on quality, while Dubai origin HMS 1&2 offers reported in the range of USD 325-327/MT, CFR amid limited supply with upcoming Eid holidays. Offers for South African HMS 1&2 and West African origin containerized HMS stood in the range of USD 330-335/MT and USD 310-315/MT CFR respectively. Domestic HMS 1&2 remains stable in the range of 24,800/MT (USD 357-360) ex Mumbai.

-- Pakistan - Pakistan’s currency continued to appreciate against USD this week and has currently recovered to 146-147 levels. However, the impact of the same on domestic finished steel offers is yet to be seen. Market likely to close down during the Eid Holidays next week with expectation of improved sentiments from mid-June.

SteelMint’s assessment for containerized Shredded scrap stands at around USD 330/MT, CFR Qasim slightly down against the last week, amid very limited buying interest on upcoming Eid holidays. HMS from Dubai and South Africa remained unchanged in the range of USD 330-333/MT and 328-330/MT, CFR respectively.

Local scrap equivalent to Shredded offers rose by PKR 1000/MT to PKR 64,000-64,500/MT (USD 416-419) while continuous casting Billet dropped to PKR 85,000-86,000/MT. Offers for Bala billet and Rebars remained unchanged.

-- Bangladesh - Imported scrap offers to Bangladesh jumped up in the opening of the week on strong global sentiments, however, witnessed slight fall towards the closing. Buying activity remained low and the market is expected to be quiet during the next week on account of Eid holidays.

Assessment for containerized Shredded from Europe & North America stands in the range of USD 345-350/MT, CFR Chittagong, up by USD 5/MT from last week.  South American HMS 1 offers stand at around USD 330-335/MT, while offers for P&S scrap in containers were assessed at USD 350/MT, CFR, with trade volumes remaining low

Local scrap showed some stability after weeks of a downward trend, with shipyard scrap reported at BDT 33,500-34,000/MT (USD 398-404) ex-works inclusive of taxes.