According to Mining News Pro -This week observed softening trends in major global scrap markets on weak demand. Japanese scrap prices moved down further by JPY 1000-2000/MT amid two more price cuts of Tokyo Steel. China’s Shagang steel slashed scrap prices amid falling finish steel prices. Turkish scrap importers concluded deep sea cargo trades at corrected prices. Asian markets like Taiwan, Vietnam and Pakistan continued downtrend on dull local fundamentals. Indian market remained subdued on weak finish steel sales. Bangladesh observed stability in offers amid steady local movement.
Turkey imported scrap prices edge down amid limited trades - Turkish scrap prices observed downward pressure on weak rebar demand and only 4 scrap cargo deals reported this week. Turkish importers turn active for deep sea cargoes after a silence for short period. A steel mill in Iskenderun region booked US cargo comprising 17,000 MT of HMS 1&2 (80:20) at USD 335/MT, CFR and 3,000 MT of Bonus at USD 340/MT, CFR. While a Baltic origin cargo comprising 20,000 MT of HMS 1&2 (80:20) concluded at USD 335/MT, CFR. According to SteelMint’s price assessment, USA origin HMS (80:20) scrap stands at around USD 335-336/MT, CFR Turkey, slightly down by USD 2-4/MT W-o-W. While HMS 1&2 (80:20) for European origin heard at USD 327-328/MT, CFR.
Tokyo Steel scrap purchase prices hit 6-month low - Japan’s leading EAF steel mini-mill - Tokyo Steel announced two price cuts resulted in further drop of JPY 1000-2000/MT (USD 9-18) effective on 13th Nov and 16th Nov this week. Prices for H2 fell 6 months low at JPY 34,000/MT for Utsunomiya plant in Kanto region while JPY 33,000/MT for largest plant Tahara. Bids for the same grade noted at JPY 32,500/MT for its Takamatsu steel center and JPY 34,500/MT for Kyushu plant.
China’s Shagang Steel cuts scrap purchase price on falling steel prices - Shagang Steel slashed its scrap purchase price by RMB 50/MT (USD 7) effective from 13th Nov. It is paying RMB 2,730/MT inclusive of 16% VAT for HMS (6-10 mm thickness) in Zhangjiagang, down RMB 50/MT as against last report of RMB 2,780/MT on 27th Oct’18. This was the first time in last two and half months’ period the mill had lowered its scrap buying price. It has also reduced wire rod prices on weak demand for mid-November shipments by RMB 80/MT however rolled over the prices those for rebar.
South Korean Hyundai Steel booked high grade Japanese scrap - Hyundai Steel has contracted for about 24,000 MT Shindachi scrap through individual negotiation at JPY 40,500/MT (USD 357), FoB which is lower by JPY 1500/MT (USD 13) as against last report at JPY 42,000/MT, FoB. Its H2 purchase price expectation is at around JPY 32,500/MT, FoB however no deal heard yet at these levels. The steelmaker seems less likely to place bids till Jan’18 and may continue to buy high grade scrap through individual negotiations.
Vietnamese buyers booked Japanese bulk cargoes - On falling Japanese export offers, Vietnamese importers booked about 30,000 MT of H2 in bulk cargoes at around USD 330/MT,CFR. HMS 1&2 assessment stands at USD 350-355/MT,CFR Phu My Port. Cheaper availability of billets keeps Vietnamese and Indonesian scrap imports subdued.
Taiwanese scrap prices fall to almost 1 year low levels - Price assessment for USA origin HMS (80:20) stands at around USD 300-302/MT, CFR Taiwan in containers, down USD 8-10/MT as against USD 310/MT, CFR levels last week. Dull finish steel demand pulls scrap prices down in Taiwan. Notably, prices have come down to almost 1 year low in Taiwan.
Indian imported scrap market silent amid subdued finish steel sales - India remained on sidelines for yet another week for scrap imports. Easier availability of local scrap remains a preference over imported scrap. Market is expected to pick up activities in next couple of weeks. Over an expectation of tight global supply on seasonal slowdown and amid strengthening of INR against USD, local scrap prices remain supported.
The assessment of Shredded scrap from Europe/UK stood at USD 355-360/MT, CFR. Offers for Dubai based HMS 1 heard in the range USD 335-340/MT, CFR Nhava Sheva while minor trades for West African HMS scrap concluded at USD 325-330/MT, CFR Goa and Chennai. Local HMS 1&2 (80:20) basic prices assessed in the range INR 26,200-26,400/MT, ex-Mumbai.
Pakistan’s imported scrap market quiet, Shredded offers down - Containerized Shredded 211 from Europe and UK heard in the range of USD 355-360/MT, CFR Qasim, down USD 5/MT W-o-W. Dubai based HMS 1 prices heard USD 340-345/MT, CFR. South African HMS 1&2 remains at around USD 347-350/MT, CFR Qasim. Amid closure of several rerolling mills based in Sindh and Balochistan and dampening construction activities in both private and public sector projects, the demand for finish steel remains poor.
Bangladesh observed limited scrap trades amid domestic support - Bangladesh importers booked minor trades for imported scrap amid rising offers for local scrap this week. Imported scrap offers heard slightly up however prices remain stable on a weekly basis. Offers for containerized Shredded 211 heard in the range USD 375-380/MT, CFR Chittagong. HMS 1 traded at USD 363-365/MT, CFR. Finish steel movement remained average at almost stable levels. Indian sponge iron export prices assessed firm around USD 365/MT, CFR Chittagong. Ship cutting market weakened further this week on inability of end buyers to open fresh L/Cs.