Global Ferrous Scrap Market Overview – Week 3, 2020

Turkey – A fresh deep sea cargo booking to a Turkish mill from USA after a couple of week’s silence took the global scrap market by surprise, as the booking concluded at price level lower by over USD 15/MT, and is likely to have ramifications in offers to major markets worldwide.

In the latest deal concluded this week, an eastern Marmara based major steelmaker has booked a bulk vessel of 35,000 MT of cargo, comprising of HMS 1&2 (95:5) at a price of USD 295/MT. The shipment for the cargo is expected for February.

After normalizing the latest deal, SteelMint’s assessment for HMS 1&2 (80:20) from USA origin stands at USD 285-290/MT CFR Turkey, down by over USD 15/MT against last week, while the assessment from Europe stands at USD 280/MT CFR.

Japan – Japan’s Kansai tender for Jan’20 was concluded this week on 16th Jan, in which yhe winning bid was awarded a total 5,000 MT of Japanese H2 at an average of JPY 25,650/MT (USD 233) FAS with 20th Jan-20th Feb’20 material loading.

The bid price was lower by JPY 1,017/MT (USD 9) against the Kanto tender concluded last week on 10th Jan’20 at JPY 26,667/MT (USD 243) for 26,100 MT Japanese H2, with the decline being attributed tolimited buying interest is owing to smaller lot size offered.

Japanese Tokyo Steel has kept their scrap purchase price bids unchanged since the last 4 weeks now, after the last price hike on 12th Dec’19

India – Imported scrap offers to India have dropped significantly in the last few days, post a deep sea cargo booking by a Tukish steelmaker was confirmed on Thursday. However, the buyers are in a wait and watch mode till further clarity on the fresh offers with no major bookings happening at the moment.

Assessment for containerized Shredded from the USA and UK to India stands at USD 305-308/MT, CFR Nhava Sheva, plunging by USD 12-15/MT against last week.

HMS 1 (no ci gi) super from UAE is USD 300-302/MT CFR Nhava Sheva. HMS 1 (hand loaded) from South Africa is reported in the range of USD 302-305/MT CFR.

West African HMS too witnessed a sharp fall since yesterday, with few trades being reportedly concluded at USD 294-295/MT CFR Goa, against USD 298-299/MT CFR earlier in the week. Earlier in the week, higher quality HMS 1 (hand loaded) from Central American (Hondarus) origin was reported at around USD 300/MT CFR.

Pakistan  Offers for imported scrap to Pakistan moved down all through the week, earlier on the anticipation of of a price correction and later following the global plunge post the Turkey deal.

Shredded offers to Pakistan currently stand at around USD 303/MT CFR Qasim, down by USD 18-19 against last week, while from the opening of the week the prices slid down by USD 12/MT.

However, as per market participants the buyers are bidding at an even lower level and targeting Shredded scrap at USD 300/MT CFR or below, keeping trades limited. HMS from Australia and Dubai are being offered at around USD 300/MT CFR.

Bangladesh – Imported scrap trades turned slow again this week on different factors including domestic market slowdown, high prevailing offers and sufficient inventories with major mills. Few HMS trades to smaller mills were concluded earlier in the week, however by the closing of the week, market turned silent to wait for fresh offers after price correction.

Assessment for containerized Shredded scrap had peaked to USD 332-335/MT CFR Chittagong earlier in the week, however indicative offers for shredded after the global drop in offers are in the range of USD 320-322/MT CFR.

Eariler in the week, HMS 1 offers from Brazil were reported around around USD 305/MT, CFR. HMS 1 from Canada and South Africa was being offered at around USD 310/MT CFR while Australian origin HMS (80:20) and HMS (90:10) was reported at around USD 308-309/MT and USD 312-313/MT CFR respectively.

Vietnam – Japanese origin H2 scrap in Bulk to Vietnam was sold at USD 281-282/MT CFR Vietnam latter half of last week, down from USD 287-288/MT in the previous week. Offers for Bulk H1/H2 stood at USD USD 277-278/MT CFR.

 

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