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Weekly round-up: Tight availability pushes global ferrous scrap offers higher

Imported ferrous scrap offers rebounded this week due to material shortage. Turkish imported scrap buyers started restocking. Low demand for finished steel in Vietnam res...

Melting Scrap
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6 Aug 2022, 16:44 IST
Weekly round-up: Tight availability pushes global ferrous scrap offers higher

Imported ferrous scrap offers rebounded this week due to material shortage. Turkish imported scrap buyers started restocking. Low demand for finished steel in Vietnam resulted in limited buying of scrap. Japan's scrap export offers edged down amid negative buying interest even as the market is awaiting Kanto tender results. Shagang Steel's scrap prices rose following improved finished steel sales. South Asian scrap offers increased after a few deals were concluded towards the weekend.

  • Turkish imported scrap trade gains momentum: The Turkish scrap import market remained quiet in the beginning of the week as suppliers resisted offering further discounts due to the limited availability of material. In contrast, the Turkish steel industry began to quote offers for finished and semi-finished steel higher in anticipation of positive moves from significant scrap exporters.

Recently, an ex-Croatia deal was heard for HMS 80:20 scrap at $360/mt CFR and bonus grade scrap at $375/t CFR. The cargo consisted of a total of 25,000 t of scrap booked by an Iskenderun-based steelmaker.

SteelMint's price assessment for US-origin HMS 1&2 (80:20) is at $365-370/t CFR, up $5-10/t w-o-w.

  • Vietnam's import market sluggish: Imported scrap prices have declined continuously over the last four months. However, buyers believe that prices are yet to bottom out. Limited demand for finished steel from domestic and overseas buyers kept scrap bookings subdued. Meanwhile, the drop in domestic scrap prices is likely to keep buyers active in the domestic market.

SteelMint's assessment of bulk H2 scrap from Japan stands at $345/t CFR, down sharply by $20/t w-o-w.

  • Japan's export offers drop, market awaits Kanto tender outcome: Japan's scrap export offers have dropped further due to low demand from overseas buyers. The decreasing demand for finished steel from local and international steelmakers has impacted scrap offers. Japan's monthly Kanto Tetsugen ferrous scrap export tender has been scheduled for 10 August, sources informed SteelMint.

SteelMint's assessment for Japanese H2 scrap export prices stands at JPY 36,500t ($271/t) FOB, down JPY 4500 ($33/t) w-o-w.

  • Tokyo Steel's scrap purchase prices unchanged: Following the drop in scrap export offers, Tokyo Steel, Japan's largest EAF steelmaker, kept lowering its scrap purchase prices over the last three months. But this week the company held its purchase price. Currently, bid prices for H2 scrap are at JPY 42,000/t ($311/t) delivered to Tahara, and at JPY 41,000 ($304/t), delivered to the Utsunomiya works in the Kanto region via land route.

  • Shagang Steel raises scrap prices to ensure deliveries: After a three-month pause, China's Shagang Steel announced an RMB 100/t ($15/t) increase in scrap buying prices for all grades. HMS (6-10mm) prices had been revised to RMB 2,770/t ($411/t) delivered to headquarters, including 13% VAT. The company raised scrap buy prices as finished steel demand and sales in the country inched up this week.

  • Bangladesh's imported scrap market subdued: Containerised scrap buyers in Bangladesh have been less active in booking new slots. Nevertheless, prices in the imported market rose during the week due to brisk trading by Indian importers. However, the country's trade volumes fell due to the depreciation of the Taka, which created difficulties in opening Letters of Credit (LCs).

SteelMint's assessment for UK-origin shredded scrap stands at $495/t CFR, up by $15-20/t w-o-w.

Bulk purchasers remain silent at the beginning of the week as the rising value of the dollar has had a negative impact on the market. Recently, a major mill in Bangladesh booked around 18,000 t of bulk H2 and HS grade scrap of Japan-origin at an average price of $425/t CFR Chittagong.

  • Pakistan's imports slowly picking up: Market participants in Pakistan have adopted a wait-and-see approach in order to gain clarity on price direction and liquidity issues caused by currency fluctuation. Meanwhile, to meet urgent needs amid limited domestic scrap availability a few buyers booked 2,500 t of shredded scrap at $475-480/t CFR Qasim.

SteelMint's assessment for UK/EU-origin shredded stands at $478/t CFR Qasim. Imported scrap offers gained $20/t w-o-w.

  • India's import demand rises on tight domestic supplies: India's imported scrap bookings in the container and bulk segments continued this week on the back of improved demand for finished steel and strong domestic scrap prices due to a shortage of material in the domestic market. A total of 48,000 t of mixed bulk cargo of UK origin, comprising shredded and HMS, was booked at an average price of $405/t CFR Chennai.

In another deal, a cargo of 22,000 t of USA-origin shredded and PNS, and 11,000 t of HMS was traded at an average price of $409/t CFR Chennai. SteelMint's assessment of Europe-origin shredded scrap in containers stands at $480/t CFR Nhava Sheva, up $15-20/t w-o-w.

 

 

6 Aug 2022, 16:44 IST

 

 

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