Global Ferrous Scrap Market Overview - Week 36, 2019

Turkey - Price for imported scrap to Turkey plummeted by a huge margin this week as several deep-sea cargo bookings were observed at price range of around 2 & a half year low levels, while the prices have fallen by USD 50/MT in just over 2 months.

The recent deals included a swiss based supplier selling 30,000 MT of cargo comprising of 5,000 MT HMS 1&2 (80:20) at USD 247/MT and 25,000 MT of Bonus scrap at USD 257/MT CFR Turkey. Prior to this, a leading supplier based in the UK sold a bulk cargo to Marmara based major steel maker comprising 20,000 MT of HMS 1&2 (80:20) at USD 250/MT, CFR Turkey, among other deals.

Assessment of US-origin HMS 1&2 (80:20) scrap has moved down to USD 252/MT, CFR Turkey, down USD 18/MT against last week’s report. While assessment of European origin HMS 1&2 (80:20) currently stands at USD 247/MT, CFR Turkey.

Japan - For another week in a row, Japan’s mini-mill Tokyo Steel lowered its domestic scrap purchase bids twice in a week, on 4th Sep at its Tahara and Utsunomiya plants and on 6th Sep’19 at all its 5 plants, by JPY 500/MT each respectively.

Following both the price cuts, the company is now paying JJPY 25,000/MT (USD 234) for H2 scrap delivered to Utsunomiya plant while the price for H2’s delivery to its Tahara and Okayama works stand at JPY 24,500/MT (USD 229) and JPY JPY 23,000/MT (USD 215) respectively.

Japan’s Kansai Iron and Steel Federation’s monthly tender for scrap export, concluded this week on 4th Sept’19, in which the winning bid (Econecall) was awarded a total 5,000 MT of Japanese H2 at an average of JPY 25,110/MT (USD 236), FAS, down by JPY 3010/MT (USD 28) against last winning bid in July’19, while the result for this month’s Kanto Tetsugen Is expected on 11th Sep’19.

South Korea - Leading steelmaker Hyundai Steel has lowered its purchase bids for Japanese scrap purchase by JPY 1,000/MT (USD 9) this week, amid falling scrap prices in the domestic Japanese market. This was the first price revision by the company in 2 months, as while the company had kept its bid for H2 scrap unchanged at JPY 27,000/MT FoB since the last 9 weeks.

The company has its reduced H2 scrap bids to JPY 26,000/MT (USD 244 ), FoB , while bids for other grades of scrap like H1, Shredded and Shindachi Daichibara scrap stand at JPY 27,000/MT, FoB, JPY 29,000/MT (USD 272) and JPY 30,000/MT (USD 281), FoB Japan. The company also booked a Russian bulk cargo last week comprising of 30,000 MT of Russian A3 grade scrap at USD 293/MT CNF South Korea, as Russian scrap turned up in terms of prices.

China - Following 2 successive price cuts by a total of RMB 110/MT last week, China’s Shagang Steel announced a price hike for all grades of domestic steel scrap procurement by RMB 60/MT (USD 8 ) this week, from 6th Sep’19, on slight rise in finished steel prices, as market continued to remain volatile.

Post the said price hike, Shagang steel is now paying RMB RMB 2,650/MT (USD 371) inclusive of 13% VAT for HMS 3 (6-10 mm thickness) delivered to headquarter works situated in Zhangjiagang north of Shanghai in China. While HMS 1 (thickness not less than 20 mm) and HMS 2 (6-10 mm thickness) stands at RMB 2,730/MT and RMB 2,690/MT respectively.

India - Indian imported scrap market saw a considerable rise in inquiries in the latter half of the week, as a sharp fall in offers has increased the viability of imported scrap, after several weeks of silence. Decent deals were reported in last few days at significantly lowered prices, while the market’s outlook has turned somewhat positive in terms of demand.

Assessment for containerized Shredded from the UK, USA and Europe stands at USD 275/MT, CFR Nhava Sheva, down by over USD 15/MT against last week. HMS offers too dropped considerably with Dubai origin HMS 1 currently being offered in the range of USD 260-265/MT CFR Nhava Sheva as per quality while the UK and European origin HMS was traded at around USD 255/MT CFR. Higher quality HMS from South Africa was offered in the range of USD 265-270/MT CFR.

Pakistan - Imported scrap offers to Pakistan plunged as the week progressed, following the global downturn, while purchase activity picked up by the closing of the week, as steelmakers looked to restock while the market is low.

Assessment for Shredded scrap to Pakistan from the USA and Europe stands at USD 270-275/MT, CFR Qasim down USD 15-20/MT against last week. At the beginning of the week, few bookings were reported at around USD 286-287/MT CFR, however, the steep decline was observed later in the week. HMS scrap found little interest among Pakistan buyers, amid duties and clearance costs, with HMS 1 from Dubai being offered at around 260-263/MT CFR amid limited activity.

Bangladesh - In line with the falling trend in the global market, offers to Bangladesh also plunged by the end of the week, while many buyers who were earlier waiting for a correction, made bookings in the last couple of days.

Assessment of Shredded scrap from North America & Europe dropped to USD 290/MT CFR Chittagong, down USD 13-15/MT from earlier in the week, while on a weekly basis, the prices dropped by USD 18-19/MT W-o-W. For HMS scrap healthy trades were observed at lowered prices, with HMS 1&2 (80:20) from Chile & South American origin being traded at USD 275-278/MT CFR, while HMS 1 from higher grade origins like South Africa and Australia were assessed in the range of USD 280-285/MT CFR, as per quality. Few P&S offers from Brazil stood in the range of 297-300/MT CFR.

The domestic market remained subdued with slow sales, while prices for rebar prices dropped by BDT 2500-3000/MT (USD 30-36) over the last couple of weeks.