In some relatively older deals disclosed on June 14 in Turkey’s import scrap market, prices have softened a little. Further price increases now seem harder, according to several market players. While the number of deep sea offers to Turkey has increased over the past week, Turkish mills’ finished steel sales are still on the low side. The mood in Turkey’s import scrap market has changed over the current week. Most players now believe some decline is possible in the coming week. The expectations regarding the depth of the anticipated decrease changes from player to player, but only a few believe that price will hold firm in the coming week.
The representative of one Turkish mill said deep sea scrap prices may settle at $380-385/mt CFR for US material, while ex-EU scrap prices may decline to $375-380/mt CFR. One scrap supplier’s price idea is very similar to these levels, with the supplier stating, “On average, prices will move at around $385/mt CFR, plus or minus $3-4/mt.” The decreases observed in European export yards’ collection prices are also not helping the situation. Although scrap supply volumes are not expected to increase in the short term, it is observed that some sub-collectors are more willing to sell what they have in stock ahead of the holidays in Europe.
Under the current conditions, the deep sea benchmark HMS I/II 80:20 scrap in CFR terms has decreased by 0.51 percent week on week. The prices are now 4.11 percent higher month on month in the deep sea segment, with prices being in the range of $383-390/mt CFR.
Domestic scrap prices in Ohio Valley in the US have settled down by $40-60/gt depending on the grade. HMS I prices in the US Northeast have settled down by $20/mt.
SteelOrbis has learned that the current price for Mexican domestic shredded scrap is now at MXN 7,550/mt ($423/mt), compared to MXN 7,800/mt ($433/mt) on June 5. Additionally, HMS I/II scrap prices are heard at MXN 6,050/mt ($339/mt), compared to MXN 6,300/mt ($350/mt) on June 5.
Domestic scrap prices in Italy have declined further over the past two weeks. “There is pressure on scrap prices in the EU in general,” a EU-based source commented. Export yard delivery prices have declined this week, also exerting pressure on quotations. Finished steel demand in Italy is still problematic.
The leading Japanese EAF steel producer Tokyo Steel has increased its local scrap procurement prices for all plants except for its Utsunomiya asset which had already represented the upper end of the quotation range. Domestic scrap prices in Japan have been rising despite the lack of significant demand received from abroad, particularly from South Korea or Vietnam. Tokyo Steel’s general range for H2 grade scrap has increased from the JPY 45,000-48,500/mt ($323-348/mt) range recorded on June 9 to JPY 46,500-48,500/mt ($330-344/mt) depending on the mill.
Taiwan’s import scrap prices have followed diverse trends over the past week, while market sources still report that some scrap suppliers remain reluctant. While Japanese scrap prices are finding some support from domestic demand and the return of Hyundai Steel’s bids at higher price levels, US-based suppliers are not happy yet. Ex-US HMS I/II (80:20) scrap in containers has been bought at $365/mt CFR Taiwan and above this week. At the same time, Japanese scrap suppliers have cut their offers for H1/2 (50:50) scrap by bulk to Taiwan from $390/mt CFR to $385-390/mt CFR.
Having remained out of the market for a month, South Korean steel producer Hyundai Steel has returned and shared its bids for Japanese scrap. The levels announced indicate a $8/mt increase from the South Korean producer, supporting the idea that Japanese scrap is gaining ground with the help of the domestic push. Hyundai Steel has announced its new bid for Japanese H2 grade scrap at JPY 48,200/mt ($342/mt) FOB. For the ex-US scrap segment, SteelOrbis hears that suppliers are still holding their ground with offers for ex-US HMS I scrap at around $400-405/mt CFR.
As of today, June 16, Tokyo Bay FAS-based prices for H2 grade scrap are at JPY 48,000-49,500/mt ($341-351/mt).
As a result, the SteelOrbis reference prices for ex-Japan H2 scrap have settled at JPY 48,200-49,500/mt ($342-351/mt) FOB.
In Bangladesh, even though market insiders have reported an easing as regards the opening of letters of credit, trading activity in the import scrap market in Bangladesh has continued to lack strength amid still weak end-user demand. Offers for ex-UK shredded scrap in containers have been voiced at $455-460/mt CFR, versus $460/mt CFR last week. No deals have been reported for shredded scrap, though market insiders have booked around 2,500 mt of ex-Malaysia PNS scrap at $455/mt CFR, sources said. Offers for ex-UK PNS scrap have been heard at $465/mt CFR, while ex-UK HMS I/II 80:20 scrap has been offered at $420-425/mt CFR, down by $5-10/mt over the past week. In the bulk segment, no fresh deals have been reported so far for ex-US materials, though a booking for 15,000 mt of ex-Japan H2 scrap in the Kanto Tetsugen export tender has been made at JPY 48,167/mt ($345.5/mt) FAS. The price translates to around $405-410/mt on CFR basis.
In Pakistan, import offers of shredded 211 scrap of European and UK origin have been showing a slight decrease. Although Pakistani re-rollers have not been in a hurry to book material, affected by still slow demand, political instability, and additionally by the evacuation of tens of thousands of people due to Cyclone Biparjoy in India and Pakistan, several deals have been fixed with additional discounts. In particular, most offers for ex-UK/EU shredded scrap in Pakistan have been voiced at $435/mt CFR, down by $10/mt over the past week, with a number of deals for around 5,000 mt in total reported to have been signed at the above level.