Global Ferrous Scrap Market Overview - Week 39, 2019

Turkey - Turkish imported scrap prices have fallen again after a couple of fresh deep-sea cargo bookings were signed at prices lower by a further USD 5-6/MT. The recent decline has ensured that prices have now plunged by over USD 70/MT in the last 2 months.

In recent deals reported, a Mediterranean region based steelmaker booked a bulk vessel with 32,000 MT of mixed cargo scrap from a USA based supplier,with 15,000 MT of HMS 1&2 (80:20) at USD 228/MT CFR, 15,000 MT of Shredded at USD 233/MT and 2,000 MT of P&S scrap at USD 238/MT CFR Turkey. Another USA yard sold a mixed grade cargo to an Aegean region-based mill at USD 226/MT for HMS 1&2 (80:20) and USD 231/MT CFR for Shredded.

As per SteelMint’s methodology, an assessment of US-origin HMS 1&2 (80:20) scrap has now dropped to USD 228/MT, CFR Turkey, down USD 6/MT w-o-w. While assessment of European origin HMS 1&2 (80:20) also stands stable at around USD 222-223/MT, CFR Turkey

South Korea - Leading EAF steelmaker, Hyundai Steel lowered its purchase bids for Japanese scrap for the 2nd week in a row by a another JPY 1,000/MT (USD 9) this week. Falling Japanese prices suggests a likelihood of further price cuts can be expected in the coming days.

In bids presented today for Japanese scrap, the company has its reduced H2 scrap bids to JPY 24,000/MT (USD 223 ), FoB Japan as against JPY 25,000/MT (USD 232 ), FoB presented last weeks. The bid for other grades of scrap such as H1, stands at JPY 25,000/MT, FoB, while Shredded and HS scrap now stand at JPY 27,000/MT (USD 251 ) FoB. Higher quality Shin Daichibara scrap’s purchase bid for stands at JPY 27,500/MT (USD 255), FoB Japan, as its gap with lower-grade scrap has reduced due to its low demand.

Japan -  After observing 6 Price cuts in the 3 weeks of Sep'19, Japan’s EAF mini-mill Tokyo Steel, kept its price unchanged this week, however market participants believe that given the current market, further drop in coming days seems likely.

Indonesia -  Imported scrap prices to Indonesia from most origins declined sharply this week. Buyer’s bids for P&S scrap of UK as well as Brazil origin stands at USD 260-265/MT CFR Jakarta with few deals being reported in the week, however offers were reported at USD 270/MT, CFR.

Busheling scrap from UK and European suppliers are being offered at around USD 275-280/MT, down by USD 10/MT. Offers of USA & UK origin containerized Shredded 211 standing at USD 255/MT, CFR Jakarta while HMS 1&2 (80:20) was being offered at around USD 245/MT, CFR.

Vietnam - Vietnamese market continued to remain slow as participants were cautious on persisting downward trend in prices. A deal for 3,000 MT Hong Kong origin HMS (50:50) was heard at USD 244/MT, CFR basis to Vietnam. And Hong Kong origin HMS (50:50) in bulk is offered at USD 250/MT, CFR.

Japanese H2 scrap is being offered at around USD 255-260/MT CFR Vietnam, while Bulk HMS 1&2 (80:20) offers from USA stood at USD 265/MT CFR Vietnam.

India - Imported scrap offers to India dropped again this week, after a fall in Turkish scrap import prices earlier in the week resulted in a further global downtrend, while buying activity picked up after several weeks as market is expecting a positive shift in the sentiments.

SteelMint’s assessment for containerized Shredded from the UK, Europe and USA to India stands at USD 255/MT, CFR Nhava Sheva, down by another USD 5/MT against last week’s report with decent bookings being witnessed at these levels. A global trader concluded 2,000 MT of Shredded scrap of UK and USA through containers, at USD 255/MT CFR this week.

HMS offers also have moved down by USD 5-10/MT over the week, depending on origin. HMS 1 offers from Dubai were reported to be at around USD 250-252/MT, CFR while UK origin HMS 1&2 offers were assessed at around USD 240-244/MT CFR.

Pakistan - After remaining stable in the opening of the week, imported scrap offers to Pakistan inched down further in the last couple of days following the global decline, and currently standing at similar levels as Indian Prices.

Assessment for containerized Shredded 211 scrap from UK/Europe stands at USD 255/MT, CFR Qasim, down by USD 3-4/MT against the last week closing. Several bookings for UK origin Shredded scrap were reported at USD 255/MT CFR Qasim, down USD 4-5/MT against the opening of the week, while some bids from buyers for European material was reported at USD 250-252 CFR range.

Limited offers of Dubai origin HMS 1 (super) currently stand at around USD 256-258/MT CFR Qasim, amid very limited buying interest on non viability while HMS 1&2 of European origin was assessed at around USD 245/MT CFR.

Bangladesh - Imported scrap offers to Bangladesh moved down significantly this week after observing some stability for over a week, while trade activities remained healthy in both Bulk vessel and containerized scrap market.

A Chittagong based Steelmaker booked a bulk vessel from a USA (west coast) based yard, comprising of 32,000 MT of Shredded scrap at USD 265/MT, CFR Chittagong.

Assessment for containerized Shredded scrap from Europe and North America stands in the range of USD 270-272/MT, CFR Chittagong, further down by USD 7-10/MT against last week. Many Dhaka based Steel-mills were reported to book Australian Origin Shredded scrap in containers this week, at USD 270/MT CFR,

HMS scrap offers also dropped by around USD 7-8/MT from last week, with HMS 1&2 (80:20) from Brazil being offered at around USD 258/MT CFR Chittagong, while offers for UK origin HMS 1&2 (80:20) have now dropped to USD 255/MT CFR. HMS 1 from South Africa and Australia stood at USD 265/MT CFR. P&S offers from Brazil stood at around USD 282-285/MT CFR.