Japan’s local scrap prices likely to remain strong - Leading EAF steelmakers based in major producing regions like Kanto and Gulf region in Japan have recently raised purchase prices by JPY 500-1000/MT for domestic scrap in order to fetch more volumes amid ongoing summer and stricter quality control measures. Now average H2 prices assessed in the range of JPY 35,500-36,000/MT (USD 319-324), FoB for Kanto region in central Japan. Tokyo steel has kept prices unchanged amid maintenance activities at various plants.

Usually, in August EAF steelmakers operate at full capacities to maximize their daily productions resulting in a rise in scrap prices. Also, demand for Tokyo Olympics 2020 is expected to increase in earnest. The amount of electricity produced on daily basis has fallen sharply leading to an unusual situation of supply-demand, which has tightened further amid summer season in Japan.

Hyundai Steel abandons bid for Japanese scrap again - South Korea’s leading EAF steelmaker - Hyundai Steel has suspended bids for all grades of Japanese scrap for 2nd successive week. Amid ample number of contracts available in hand and disparity between price expectations from Japanese scrap suppliers and bidding levels, the company has suspended bidding rather than buying excessively.

On the other hand, South Korean another leading steelmaker Dongkuk Steel has purchased around 5000 MT of Japanese H2 at JPY 35,000/MT (USD 315), FoB Japan. South Korean domestic scrap supply has reduced now as prices are rising successively.

Vietnam strengthened inspection regulations for imported scrap – Vietnam recently probed smuggling of drugs in an investigations carried at the Tan Cang Cai Mep-Thi Vai port. In which four nylon bags containing 119 Kilograms of high-quality cocaine worth around USD 35 billion found into the containers carrying ferrous scrap. Increased congestion at port and mixing of spare part with ferrous scrap has increased risk of polluting an environment in the country. With stricter regulations to sell in Vietnam, scrap can flow into the other Asian markets which could lead to fall in prices amid oversupply. While Vietnamese importers are likely to shift to bulk vessel bookings rather than containers. USA origin Shredded offers in containers assessed at USD 360/MT, CFR and Japanese H2 at USD 350-355/MT, CFR Vietnam.

Turkish steel mills turn silent amid weak finish steel demand - The recent deal for imported scrap has pulled the price assessment for USA origin HMS (80:20) scrap at around USD 338/MT, CFR Turkey. Moreover, the premium for HMS 1&2 (80:20) scrap for USA over European origin stands at USD 8-9/MT.

In a deal concluded on Thursday, a steel mill in Marmara region booked a US cargo, comprising 30,000 MT of HMS 1&2 (80:20) at USD 339/MT, 5,000 MT of Shredded at USD 349/MT and 5,000 MT of Bonus at USD 354/MT, CFR Turkey. Buying interest for Turkish finish steel has remained very low since past couple of weeks and thus prices aren’t recovering in Turkey.

Taiwan imported scrap prices edge down further - Imported scrap prices in Taiwan have come down in recent deals however buying remained slow this week. Price assessment for US origin HMS (80:20) stands at USD 334-335/MT, CFR in recent deal concluded in containers.

Cheaper domestic scrap kept Indian scrap buyers away from imports - Although domestic scrap prices in India showed marginal correction this week amid tightened supply, it remained cheaper over imported. Very limited trades observed in imported scrap market as it continued to remain mute amid dull demand in local steel market, depreciated currency and nationwide transporters strike. However, few steelmakers have started enquiries anticipating that prices might have bottomed out and may observe upward corrections in upcoming days.

Offers fell marginally for Shredded and remained almost stable for HMS on W-o-W. Price assessment of Shredded from UK and USA stands at around USD 360-365/MT, CFR Nhava Sheva. UAE origin HMS 1&2 (80:20) offers assessed at USD 330-335/MT, CFR while HMS 1 assessed at around USD 340-345/MT, CFR. West African HMS is being offered at USD 315-325/MT and UK HMS 1&2 at USD 335-340/MT, CFR depending on quality.

Currently in the domestic market, HMS (80:20) basic prices assessed at INR 24,700-24,900/MT (USD 360-363) (up INR 300 W-o-W) in Mumbai, while INR 22,600-22,800/MT (up INR 100 W-o-W) in Chennai, GST @ 18% extra.

Pakistan scrap importers likely to resume activities next week - Pakistan based scrap importers turned silent in the beginning of the week over national elections. Local steel prices moved downward owing to weakened demand amid elections slowdown, heavy monsoon and holding of funds by government towards intercity construction projects. Although buyers have started enquiries now, sellers have stopped offering scrap. Some traders from UK and USA had offered Shredded at USD 355-360/MT earlier but all offers have withdrawn now. Sellers are holding back with optimisms about turning up of prices. While price assessment for HMS 1&2 (80:20) scrap from Dubai remained at around USD 345-350/MT, CFR Qasim.

Bangladesh continues limited quantity trades for imported scrap at corrected prices - In recent trade deals, Shredded 211 scrap from UK sold in the range of USD 368-373/MT, CFR Chittagong. Few offers also heard at USD 365-368/MT from other origins like Brazil and Australia. HMS 1 from Brazil and Chile heard in the range of USD 355-365/MT, CFR respectively. While UK and Europe HMS 1&2 (80:20) assessment stood at around USD 340-345/MT, CFR as against USD 350-355/MT report at which few deals were sold last week.

Local scrap prices in Bangladesh assessed at BDT 35,000-35,700/MT, ex-works. While ship breaking market witnessed dull sentiments with prices edge down by USD 5/LDT again this week. India being disturbed by successive price fall in local steel ship cutting plate prices and Pakistan being awaiting for tanker cutting permissions in actual, Bangladesh ship cutters have lowered their offers further.