Weekly: Global ferrous scrap market overview

Global scrap market inched up this week on gradually improving global demand. Turkish scrap import offers moved up to a 4 months high level this week. Scrap offers to India and Pakistan slightly increased, while to Bangladesh remained almost stable. This week Japan’s Kanto Tetsugen and Kansai export tender were concluded with increased bids. Meanwhile, Japan’s domestic and export prices were also continued ongoing uptrend.

Turkey: This week imported scrap prices to Turkey observed a decent number of cargoes getting booked at successively increasing prices, finally reaching a 4 month high level in prices. In the latest deal concluded, a Mediterranean region based steelmaker booked a bulk vessel from a USA based scrapyard, comprising of HMS 1&2 (80:20) at $267/t and bonus at $277/t CFR Turkey.

SteelMint's assessment for USA origin HMS 1&2 (80:20) stands at $ 268/MT CFR Turkey, up by $ 8/MT in comparison to last week's report.

Japan: Kanto Tetsugen’- Japan’s monthly ferrous scrap export tender for June’20 was concluded this week on 10th June’20. A total of 21,000 MT of Japanese H2 scrap was awarded at an average price of JPY 26,360/MT ($ 246) FAS, up by JPY 3880/MT ($36) as compared to JPY 22,476/MT ($ 209) in May’20.

Japan’s Kansai Iron and Steel Federation’s monthly tender for scrap export was concluded on the same day on 10th June’20. The winning bid was awarded a total of 5,000 MT of Japanese H2 at an average price of JPY 26,010/MT ($205), FAS, in comparison to JPY 21,825/MT during the last tender in Mar’20, increasing by JPY 4,185/MT ($39).

Japan’s Tokyo steel witnessed three successive price hike this week with bids rising by JPY 500-1500/MT ($ 5-14) at all of its works. After the third price hike, the company is now paying JPY 26,500 /MT ($ 247) for H2 scrap delivered at its Utsunomiya plant in the Kanto region, while the new prices for H2 scrap delivery to Tahara plant in Central region and Okayama plant stand at JPY 24,500/MT and JPY 23,500/MT respectively.

China: China’s Shagang Jiangsu Steel group kept its domestic steel scrap procurement price unchanged this week. Last week scrap purchase prices rose sharply by a total of RMB 80/ MT. The purchase price for HMS (6-10 mm thickness) still stands at RMB 2610/MT, inclusive of 13% VAT, delivering to headquarters works situated in Zhangjiagang North of Shanghai in China.

South Korea: Imported scrap offers to South Korea further increased this week with Japanese suppliers were quoted for H2 scrap at around JPY 27,500/MT FoB, while Korean buyers were putting bids at around JPY 26,500/MT. Meanwhile, Russian A3 grade scrap being offered at around $ 270/MT CFR basis, however, no deals were reported at this level.

India: This week imported scrap offers to India witnessed slight uptick on strong global market. SteelMint’s assessment for Shredded scrap to India from Europe/North American origins stands at $290/t CFR Nhava Sheva, slightly up against last week, with most offers for Shredded being reported at around $290/t CFR level, while suppliers offered $286-287/t CFR levels to Mundra region. Buyers’ bids were reported below $275/t CFR.

HMS 1&2 (80:20) still being offered at around $263-265/t CFR from the UK and $265-267/t CFR from Brazil. Brazil origin HMS, which witnessed good trades to the South Indian region last month at around $250/t levels. HMS 1&2 (80:20) from West African origin witnessed good trades to Goa mills at around $245/t earlier in the week, with 12-1500 t being sold, while fresh offers now stand at $250/t CFR.

Bangladesh: Offers to Bangladesh for imported scrap observed slight uptick this week with few deals were reported. The demand remains slow on low production level, however many buyers booked their bulk cargo for August shipment.

SteelMint’s assessment for Shredded 211 scrap, remains at around USD 300/MT, while offers stand widely range-bound at around USD 295-303/MT CFR Chittagong. Few deals for Shredded were concluded at around USD 300/MT CFR, with some offers being observed at USD 295/MT, while premium yards were heard offering above USD 300/MT.

HMS 1&2 (80:20) offers stands in the range of USD 266-268/MT from UK and South America to USD 274-275/MT CFR from Australian/NZ origins. HMS 1 offers stand close to around USD 290/MT level with good demand.

Pakistan: Imported scrap offers to Pakistan moved up slightly this week, while in the national budget proposed yesterday, govt has recommended removing 2% additional customs duty on Shredded and bundled scrap, although 3% custom and 2% additional customs duty on HMS imports remain unchanged.

SteelMint’s assessment for Shredded 211 scrap from UK/Europe stood at USD 292/MT CFR Qasim, up by USD 2-4/MT against last week’s report. Most fresh offers recorded at USD 292-294/MT, while offers from the premium yard were up to USD 295/MT, depending on the origin