Global Ferrous Scrap Market Overview: Week 7, 2018

This week imported ferrous scrap prices continued slight upward movement in major scrap markets. Importers in Turkey concluded several deals amid strengthening of finish steel demand while Indian steel mills booked 2-3 more bulk scrap vessels along with thin trades in containers. Heading towards Chinese New Year holidays this week demand from South Korean steel mills lowered down resulting in fall in bids from Hyundai Steel for Japanese scrap. While, Pakistan, Taiwan and Bangladesh observed improved sentiments for scrap imports despite an uptick in offers.

Turkey imported scrap prices move up on W-o-W basis - Turkey witnessed boosted finish steel sales both in exports and local markets this week, resulting in almost 7-8 cargoes booked for imported scrap from USA, Russia and Europe origins at lifted prices. The latest deals confirmed in Turkey pushed price assessment of USA origin HMS 1&2(80:20) up by USD 2-3/MT at USD 353/MT, CFR Turkey. In a recent deal concluded, Marmara based steel mill booked 40,000 MT USA origin cargo comprising 20,000 MT of HMS 1&2(80:20) at USD 353/MT, 10,000 MT of Shredded at USD 358/MT and 10,000 MT Bonus scrap at USD 363/MT respectively on CFR Marmara basis for second-half March shipment.

Hyundai Steel cuts Japanese scrap purchase prices by USD 5/MT - South Korean leading EAF steelmaker Hyundai Steel has reduced Japanese imported scrap bids by JPY 500/MT (USD 5).Its latest bid put on 14 Feb’18 for H2 grade scrap was at JPY 34,000/MT (USD 320), FoB Japan against its last bid which was at JPY 34,500/MT (USD 325), FoB Japan. Before going for maintenance activities at various plants amid holidays for Chinese Lunar New Year Hyundai steel stopped its H2 scrap imports from Japan this week.

Indian steel mills remain active in bulk cargo bookings - Strong domestic steel demand, range-bound global scrap offers and high local scrap prices have engrossed Indian mills to continue scrap imports again this week. A West India (Gujarat) based steel maker booked 2-3 more bulk Shredded cargoes for USA origin at USD 370-375/MT, CFR levels. Importers remained active also in booking containerized scrap despite an uptick in offers by USD 5-8/MT W-o-W. Shredded scrap in containers from USA assessed at USD 375-380/MT, CFR. Offers for HMS 1&2 (80:20) assessed at USD 340-350/MT, CFR from USA, Europe, and West Africa origins while from Dubai around USD 360-365/MT, CFR Nhava Sheva. Domestic scrap prices for HMS 1&2 (80:20) are assessed stable at INR 24,800-25,000/MT in Mumbai and around INR 24,900-25,100/MT (Basic prices, GST@18% extra) in Chennai.

Pakistan imported scrap prices lift in recent trades - Imported scrap prices in Pakistan lift further in fresh trades concluded as importers resumed buying activities this week. Offers for containerized Shredded 211 from USA assessed around USD 370-375/MT, CFR while from UK Shredded scrap traded in containers at USD 370/MT, CFR Qasim. Bulk cargo from USA was offered at USD 380/MT, CFR and HMS 1 from Dubai assessed at USD 365-370/MT, CFR. Ship breaking prices remained firm W-o-W at USD 440/LDT for dry bulk cargo and at USD 450/LDT for containers on CNF Pakistan basis with no sale reported.

Bangladesh scrap prices inch up as buying interest improves - Imported scrap offers to Bangladesh increased further on rising global prices this week. Local ship breaking prices gone up over which buyers shifted to imported scrap amid raising buying inquiries. Offers for imported Shredded 211 scrap in containers assessed around USD 380-385/MT, CFR while few offers for HMS 1&2 in containers from West Africa and Brazil heard around USD 370-375/MT, CFR Chittagong. Thus, price assessment has moved up by USD 5-7/MT on W-o-W basis. Ship breaking prices gone up by USD 5-10/MT to USD 430/LDT for general dry bulk cargo, USD 440/LDT for tanker cargo and USD 450/LDT for containers respectively on CNF Bangladesh basis.

Global scrap reference prices as on 17th Feb’18 -

Source : SteelMint Research