Weekly round-up: Global ferrous scrap prices move southward, trade in South Asia picks up

After remaining quiet last week, Turkiye's imported scrap market saw a deal for EU-origin material which pushed down prices further. Japan's Kanto tender for June 2022 was concluded after remaining inconclusive in the previous month. Tokyo Steel and Hyundai Steel lowered the bid for Japanese scrap. The South Asian market gained momentum and active trade was seen throughout the week.

• Turkey prices fall to over one-year low in recent deal: Turkey's imported scrap market sentiments were bearish due to lower demand from end-users at the start of the week. However, the market turned active after a recently concluded deal of Europe-origin.
  
  

Around 33,000 t of HMS (80:20) and 7,000 t of PNS of EU-origin were booked at an average price of $395/t CFR Turkey. Prices have been trending down since the last week of April.

SteelMint's assessment of US-origin HMS 1&2 (80:20) stood at $400/t CFR levels, down significantly by $40/t w-o-w.

• Hyundai Steel lowers bids for Japanese scrap: Hyundai Steel cut bids for Japanese scrap sharply by JPY 500/t ($4/t) for H2 and HS grade scrap as against the last bids presented on 26 May. Post-revision, bids for H2 scrap were at JPY 53,000/t ($395/t) while those for HS were at JPY 57,500/t ($429/t) FOB.
  
  
• 5,500 t of scrap awarded in Kanto export tender: Japan's Kanto Tetsugen ferrous scrap export tender for June 2022 was concluded this week. A total of 5,500 tonnes of Japanese H2 scrap was awarded at an average price of JPY 53,560/t ($399/t) FAS. A Vietnam-based buyer must have won the tender, sources said.
  
  

However, the average bid for the tender fell considerably by JPY 13,450/t ($100/t) in June as compared to the bid fetched in the last tender (April).

• Tokyo Steel lowers scrap buy price thrice this week: Tokyo Steel, Japan's largest EAF steelmaker, cut its scrap purchase prices thrice this week. The company cut bids by up to JPY 2,000/t ($16/t) for all steelworks. Post-revision, the bid prices for H2 scrap were at JPY 56,000/t ($419/t) delivered to the Tahara plant, while for Utsunomiya plant were at JPY 55,500/t ($415/t).
  
  

• Vietnam buyers likely to resume Japanese scrap booking: Vietnam's imported scrap market remained mostly quiet amid bid-offer disparity despite offers having come down to 4-5 month-lows. Buyers and steelmakers preferred domestic materials on cost-effectiveness. Interestingly, after the Kanto tender outcome, Vietnam-based buyers are likely to resume buying Japanese material.
  
  

Japanese bulk H2 offers are currently assessed at $470/t CFR, unchanged w-o-w.

• Pakistan imported market rebounds on active trade: Pakistan's imported scrap market rebounded this week as buyers actively secured cargoes to replenish low inventories. Additionally, domestic scrap supply tightness also kept mills active in booking imported scrap cargoes. Around 15,000-20,000 t of imported shredded scrap from UK/Europe in containers was booked at $515-525/t CFR Qasim.
  
  

Offers for shredded scrap in containers from UK/Europe were at $520-525/t CFR Qasim, largely stable w-o-w.

• Bangladesh market active in bulk booking: Bangladesh-based steel mills continued to secure imported bulk scrap cargoes as offers dropped further. In the absence of Japanese offers, mills took advantage of low offers from the EU and USA. Bangladeshi mills booked two US-origin bulk cargoes comprising a mix of HMS 1&2 (80:20) and shredded scrap at $490/t CFR and $495/t CFR Chittagong respectively.
  
  

The containerised imported scrap market remained volatile throughout the week with limited booking seen towards the week-end. Due to unstable prices, mills opted to wait for further price clarity.

Fresh offers for UK/EU-origin shredded in containers were at $545/t CFR level, down by $5/t w-o-w whereas bid prices were at $530-540/t CFR basis.

• India's imported scrap market volatile: India's imported scrap trade in containers continued throughout the week, majorly for HMS-1 of Dubai-origin. Despite offers being on the higher side, buyers secured the material. However, prices gradually declined towards the weekend.
  
  

As per SteelMint assessment, Europe-origin shredded scrap prices stood at $520/t CFR Nhava Sheva, a drop of $5/t w-o-w.