Turkey’s import scrap market has maintained a relatively stable trend in new deals from the US and the EU. The general price range remains narrow, but no downward potential is observed for now. European scrap collection prices remain firm, while the local US scrap market has not settled yet but expectations signal a sideways to slight upward movement. Accordingly, the supplier segment is observed to be maintaining its strength.
Turkish steel mills have remained silent over the past week, mostly indicating that sellers are not decreasing their offers to Turkey. A source at one Turkish steel mill said he believes that deep sea scrap prices will remain at around $370s/mt CFR on average for benchmark HMS I/II 80:20. “I think Turkish mills may hold the line there if they do not wait too long again before starting to buy for October shipments. If we find ourselves on a tight schedule again for purchases for October shipment by the time of the IREPAS meeting to be held on September 17, prices may move up,” the source said.
SteelOrbis has also heard that ex-Cyprus HMS I/II 75:25 scrap was sold to Iskenderun yesterday, August 31, at $330/mt CIF. Market players think workable levels for the same grade from Israel are at around $325/mt CIF Iskenderun. Meanwhile, sellers’ ideas for Bulgarian and Romanian HMS I/II 80:20 scrap stand at around $355-360/mt CFR, though no new deals were done in this range.
Under the current conditions, the deep sea benchmark HMS I/II 80:20 scrap prices in CFR terms have remained stable week on week. The prices are now 6.02 percent higher month on month in the deep sea segment, with prices being in the range of $365-375/mt CFR.
The September scrap trade in the US is unlikely to start until Tuesday of next week, sources said, adding that settled prices will probably be determined before Friday, September 8. Similar to two weeks ago, sources continue to report a widespread belief that prices will settle at sideways to slightly up compared to August settled levels, with shredded and P&S scrap prices remaining mostly stable, and HMS possibly firming up “slightly” based on the region.
SteelOrbis has learned that the current price for Mexican domestic shredded scrap is now at MXN 5,350/mt ($311/mt), compared to MXN 5,150/mt ($293/mt) last week. Additionally, HMS I/II scrap prices are being heard at MXN 4,550/mt ($265/mt), compared to MXN 4,450/mt ($254/mt) last week.
The Italian domestic scrap market was very silent during the holiday season. While market players are mostly expected to return from their holidays next week, slow trading activity has started late in the current week.
The leading Japanese EAF steel producer Tokyo Steel has cut its local scrap purchase prices for one plant, Utsunomiya. Domestic scrap procurement prices of the other plants have remained stable. Despite the announced cut, Tokyo Steel’s general range for H2 grade scrap has remained at JPY 48,000-51,000/mt ($330-351/mt) depending on the mill. Shindachi scrap prices of Tokyo Steel have also moved sideways, at JPY 49,000-52,000/mt ($337-358/mt).
Vietnamese mills have continued to maintain low capacity utilization rates, while heavy rainfalls have been impacting the country. Vietnam’s steel exports have dropped for the sixth consecutive month, amid the global slowdown and China’s impact. Although the Vietnamese government is targeting nine percent GDP growth in the second half of the year, the steel segment continues to struggle for now. US West Coast HMS I/II 80:20 offers for bulk cargoes are offered to Vietnam in the range of $410-420/mt CFR. Ex-Japan H2 scrap offers are at $385-395/mt CFR.
Taiwan’s import scrap prices have remained mostly stable over the past week. A contact at one major Taiwanese producer stated that domestic rebar sales this week have been on the low side, “because most deals were completed during August. Over the past week, offers for ex-US HMS I/II (80:20) scrap in containers to Taiwan have remained stable at $375-380/mt CFR. At the same time, Japanese scrap suppliers have kept their offers for H1/2 (50:50) scrap by bulk to Taiwan at $383-390/mt CFR.
In Bangladesh, the situation in the import scrap market has remained difficult with low demand and the problem regarding letters of credit (LCs) continuing. However, more deals have been reported in Bangladesh this week, mainly given steelmakers’ need to replenish their stocks, coupled with still bullish sentiments in the market in terms of pricing. More specifically, in the container scrap segment, deals for HMS I/II 80:20 from Australia and New Zealand have been reported at $422-425/mt CFR level this week, while offers have been voiced at $425-430/mt CFR. Besides, another deal for ex-Malaysia bushelling scrap has been signed at $455-460/mt CFR. In the bulk segment, trade activity has remained limited so far, with only a deal for 8,000 mt of ex-Singapore PNS scrap being confirmed at $440/mt CFR this week. No deals for ex-US scrap in bulk have been reported so far, with offers for HMS grade increasing to $420-425/mt CFR, up by $10-15/mt week on week.
In Pakistan, deals for import scrap have remained occasional, as the curbs on the opening of letters of credit (LCs) have continued to affect business activity. In particular, several deals for ex-UK/EU shredded scrap in containers have been reported at $435-438/mt CFR, versus deal prices at $435/mt CFR last week. Meanwhile, new ex-UK/EU shredded scrap offers have been voiced at $440-445/mt CFR, up by $5/mt over the past week. At the same time, Pakistani rebar mills have been forced to increase their offers for domestic customers once again this week, due to the continuous and unprecedented increase in the cost of energy and the depreciation of the Pakistani rupee against the US dollar.