According to Mining News Pro -This week observed softening trends in major global scrap markets. Turkish scrap importers continued booking cargoes for Nov-Dec shipments at marginally corrected prices. While Japanese domestic scrap prices moved down further with fall in bids for monthly export tender ‘Kanto Tetsugen’. Tokyo Steel cut prices further by JPY 1000-2000/MT amid two successive price cuts this week. South Korean importers remained away from imports while China’s Shagang steel keeps scrap purchase unchanged. Asian markets like Taiwan, Vietnam and Thailand continued downtrend on weak local markets. Indian market trade activities came to a pause amid Diwali holidays while Pakistan and Bangladesh observed increasing inquiries for scrap amid slightly improving domestic markets.
Turkey importers continue cargo booking, prices range bound - Turkish scrap prices remained range bound amid 6 more bulk scrap cargo bookings reported this week. A steel mill in the Marmara region booked a European cargo comprising 20,000 MT of HMS 1&2 (75:25), 10,000 MT of Shredded and 10,000 MT of a mixture of HMS 1 and P&S at an average price of USD 337/MT, CFR. According to SteelMint’s price assessment, USA origin HMS (80:20) scrap stands at around USD 339-340/MT, CFR Turkey, slightly down USD 1-2/MT W-o-W. While HMS 1&2 (80:20) for European origin heard at USD 329-330/MT, CFR.
Tokyo Steel cuts scrap purchase prices twice in a week’s time - 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 7th Nov and 10th Nov this week. Prices for H2 fell 4 months low at JPY 34,500/MT for largest plant Tahara and Takamatsu Centre while JPY 35,500/MT at Utsunomiya plant in Kanto region and JPY 35,000/MT at Okayama plant in Western Japan. It booked 5000 MT imported scrap from Russia at Kyushu works for urgent requirement.
Japan’s Kanto tender bids down by USD 9/MT in November - Average H2 bids recorded at JPY 33,875/MT (USD 297), FAS. In Nov’18 tender, first winning bid fetched 5000 MT H2 scrap at JPY 34,050/MT, FAS and second winning bid recorded for 5000 MT H2 at JPY 33,700/MT, FAS. On monthly premises, bids have edged down by JPY 1025/MT (USD 9) M-o-M in Nov`18 as against the average bids fetched at JPY 34,900/MT (USD 306), FAS in Oct’18. However, no material was booked as even highest bid was lower than expected in Oct’18.
South Korean Hyundai Steel suspends bidding for Japanese scrap - Amid ample inventory and contracts in hand, South Korean Hyundai steel continues to remain away from bidding for Japanese scrap. Its purchase requirement for H2 hasn’t recovered yet. It booked significant volumes from USA in bulk cargoes while South Korean domestic scrap circulation is also rising sharply. As per reports, steelmaker seems less likely to place bids for H2 till Jan’18.
Taiwanese scrap prices fall further amid weak demand - Price assessment for USA origin HMS (80:20) stands at around USD 310/MT, CFR Taiwan in containers, down USD 8/MT as against USD 318/MT, CFR last week. Slow finish steel demand pulls scrap prices down in East Asian markets despite strong global offers. Vietnamese local market remained silent with very limited activities heard in the market.
Indian imported scrap market silent on Diwali festival holidays - Indian imported scrap market observed short pause amid ‘Diwali’ festival holidays this week. No major deal heard in the market and assessment remained mostly stable. Participants remain hopeful for pickup in demand with prices likely to remain supported. Cheaper domestic scrap remains a preference. Offers for Containerized HMS 1 from Dubai stand in the range USD 330-335/MT, CFR Nhava Sheva, while assessment for Shredded from UK/European remains at USD 355-360/MT, CFR India. West African HMS stands USD 320-330/MT, CFR Nhava Sheva. Local HMS 1&2 (80:20) basic prices assessed in the range INR 25,600-25,800/MT, ex-Mumbai.
Pakistan’s imported Shredded scrap offers up - Containerized Shredded 211 from Europe and UK heard in the range of USD 360-365/MT, CFR Qasim. While offers from leading recyclers are being quoted in the range of USD 364-367/MT, CFR. South African HMS 1&2 assessment remains still at around USD 347-350/MT, CFR Qasim. Amid some protests and `law and order` situation prevailing in few parts of the country, the trade activities remained on lower side. However, participants expect for good demand along with improvement in prices in next couple of days.
Bangladesh imported scrap trades pick up amid rising inquiries - Bangladesh observed improved trade sentiments this week. Imported scrap offers from European and Canadian suppliers corrected slightly up. Inquiries gained momentum as finish steel market observed steady movement. Offers for containerized Shredded 211 heard in the range USD 372-375/MT, CFR. While bulk cargo offers heard for Shredded at USD 385/MT, CFR and USD 372/MT levels for HMS 1&2 (80:20), CFR Chittagong. P&S assessed at 375-378/MT, CFR and HMS 1 at USD 363-365/MT, CFR. Indian sponge iron export deals to Bangladesh reported at around USD 365/MT, CFR Chittagong. Ship cutting market slowed down after witnessing several sales last week.