Global Ferrous Scrap Market Overview: Week 47, 2019

In the latest deal reported, an Aegean-region based steel maker booked a bulk vessel of 30,000 MT of mixed cargo from a European origin supplier, comprising of 27,000 MT of HMS 1&2 (80:20) at USD 260/MT CFR Turkey and 3,000/MT of Bonus at USD 270/MT CFR.

Assessment of US-origin HMS 1&2 (80:20) scrap has inched up marginally by USD 2-3/MT W-o-W and stands at USD 263/MT, CFR Turkey while European origin HMS 1&2 (80:20) now stands at around USD 258/MT, CFR Turkey.

China: After observing two successive price cuts last week, China’s Shagang Jiangsu Steel group has announced a price hike for all grades of domestic steel scrap procurement, by RMB 80/MT (USD 11) effective from 22nd November’19.
Post the said price cut, Shagang Steel is paying RMB 2,790/MT (USD 397) inclusive of 13% VAT for HMS (6-10 mm thickness) delivered to headquarters works situated in Zhangjiagang north of Shanghai in China up by RMB 80/MT(USD 11) against the last report.

Japan: Tokyo Steel has hiked its scrap purchase bids by JPY 500/MT (USD 5) at all of its 5 works this week. The new prices for all grades effective from 19th Nov'19.

After the said price hike, the company will now pay JPY 23,000 /MT (USD 211) for H2 scrap delivered at Tahara plant in central region while JPY 21,500 /MT (USD197) for Okayama plant. For H2 delivered to Kyushu works in the western region, Utsunomiya works located in the Kanto region and Takamatsu Steel Center the new price will be JPY 24,000/MT (USD 220), JPY 23,500/MT (USD 216) and JPY 20,500/MT (USD 188) levels respectively.

India: Limited trades for imported Scrap led to India ensured the offers moving down significantly this week, in line with the trend in other South Asian markets.

SteelMint’s offers for containerized Shredded from the UK, Europe and the USA to India have come down to USD 280-284/MT, CFR Nhava Sheva, down by USD 7-10/MT against last week's report, while offers for P&S now stand at around 290/MT CFR Nhava Sheva.
Offers for South African origin hand loaded HMS 1 stood in the range of USD 265-270 CFR. UAE origin HMS offers also plummeted significantly against last week, with HMS 1 super (no ci gi) from Dubai standing in the range of USD 270-274/MT CFR.

West African HMS 1&2 (80:20) was reportedly sold at USD 260/MT CFR Goa this week. European and UK origin HMS 1&2 (80:20) was being offered at around USD 255-257/MT CFR.

Pakistan: Imported scrap offers to Pakistan have inched down this week as a slow domestic market and sharp price cuts for finished steel have affected the margins of steel mills.

Assessment for containerized Shredded 211 scrap from UK/Europe stands at around USD 285/MT, CFR Qasim, inching down by USD 3-4/MT against last week’s report. UAE origin HMS 1 (super) is being offered at around USD 280-282/MT CFR, marginally lower than last week. Few offers for European Origin HMS 1&2 (80:20) stood stable at around USD 270/MT CFR.

Bangladesh: Imported scrap offers to Bangladesh have slightly moved down on limited trades being reported since the last few weeks.

Assessment for Shredded scrap moved down swiftly by over USD 10/MT W-o-W and stands in the range USD 292-295/MT, CFR Chittagong as against the last week’s report of USD 303-305/MT, CFR. Australian origin HMS 1 is being offered at around USD 285/MT and above, while few mills are bidding for HMS 1&2 (80:20) at around USD 273-275/MT CFR.