Earlier this week, the anticipation of a slight recovery in Turkey’s deep sea scrap market was realized in a new deal. Scrap suppliers had stated that their collection prices meant higher levels for Turkey, but Turkish mills were reluctant to conclude bookings at sellers’ desired levels. This week, though, sellers seem to have achieved their aim, convincing some mills to reconsider.
Today, August 11, European scrap prices have continued to increase in a second deal this week. While some market players are not strictly convinced this trend will be sustained, others are expecting higher levels. While scrap prices are moving up and the sellers’ side is fairly sure that this is just a beginning, not all agree. Turkish mills and scrap suppliers hold different ideas about the future trend of scrap prices. Not all buyers are ready to accept higher levels, while scrap sellers report there is no way they can cut prices.
Under the current conditions, the deep sea benchmark HMS I/II 80:20 scrap prices in CFR terms have moved up by 3.3 percent week on week. The prices are now 2.83 percent lower month on month in the deep sea segment, with prices being in the range of $356-365/mt CFR.
SteelOrbis have confirmed that scrap prices in the US Northeast have settled at sideways. Sources close to SteelOrbis have confirmed that HMS scrap in the Ohio Valley settled up by $20/gt this month. This is similar to what has been seen in the Southeast, where HMS and P&S scrap (and turnings) all settled up by $20/gt.
On the other hand, the dock delivered price range for HMS I/II 80:20 scrap in Boston is still being heard at approximately $250-260/gt and in Philadelphia is still trending at approximately $260-$280/gt.
SteelOrbis has learned that the current price for Mexican domestic shredded scrap is now at MXN 5,150/mt ($291/mt), unchanged in pesos from last week. Additionally, HMS I/II scrap prices are being heard at MXN 4,250/mt ($240/mt), compared to MXN 4,300/mt ($251/mt) last week.
Prices for ex-Japan scrap have once again increased during the Kanto Tetsugen scrap export tender held on August 9. However, the price rise was so small that many market players have considered it as a sideways movement on Japanese yen basis. The Kanto tender average price was at JPY 49,799/mt ($347/mt) FAS, indicating a rise of JPY 59/mt, but in dollars the decrease was $3/mt due to the depreciation of the Japanese yen.
Following last week’s sales of 150,000 mt, domestic rebar sales in Taiwan have fallen silent again in the current week. Over the past week, offers for ex-US HMS I/II (80:20) scrap in containers to Taiwan have been at $365-368/mt CFR, while the highest deal done was at $365/mt CFR. Japanese scrap suppliers have increased their offers for H1/2 (50:50) scrap by bulk to Taiwan to $375-389/mt CFR.
Despite the very slight rise observed in the Kanto tender earlier this week, Tokyo Steel has not revised its scrap prices. Also, Tokyo Bay FAS-based prices have softened over the past two weeks on yen basis, though the depreciation of the Japanese yen caused a bigger decline in dollar-based quotations. As of August 10, Tokyo Bay FAS-based prices for H2 grade scrap declined on the upper end by JPY 500/mt as compared to the levels recorded on July 28 to JPY 49,500-50,500/mt ($342-349/mt).
As a result, the SteelOrbis reference prices for ex-Japan H2 scrap have increased by JPY 1,800/mt on the lower end week on week, coming to the range of JPY 48,800-51,000/mt ($337-352/mt) FOB.
In Bangladesh, global scrap sellers appear to be becoming more bullish in Bangladesh, especially in the containerized segment, aiming to sell at higher prices later. At the same time, most Bangladeshi buyers have remained quite cautious in their bookings. More specifically, in the containerized segment, new offers for ex-UK/EU shredded scrap have been reported at $430/mt CFR Bangladesh, up by $10/mt week on week, while offers for shredded scrap from the US have been heard at as high as $440/mt CFR. Meanwhile, several small deals for ex-South America and ex-UAE HMS I/II 80:20 scrap have been reported at $410/mt CFR Bangladesh, versus offers at $400/mt CFR last week. However, a deal for ex-Australia HMS I/II 80:20 has been reported at $390/mt CFR, indicating the same price level as last week. In the bulk segment, a booking for 15,000 mt of ex-Japan H2 scrap in the Kanto Tetsugen export tender has been made at JPY 49,799/mt ($347/mt) FAS, indicating a rise of JPY 59/mt, but in dollars the decrease was $3/mt due to the depreciation of the Japanese yen. The price translates to around $415-420/mt CFR.
Inquiries for import scrap from customers in Pakistan have been increasing over the past week given the necessity to replenish stocks, coupled with increased flexibility of Pakistani banks as regards issuing letters of credit (LCs). Accordingly, following several deals for ex-UK/EU shredded scrap in containers signed at $417-418/mt CFR on Friday, August 4, more deals are reported to have been signed during last weekend and at the beginning of this week at $414-419/mt CFR. Thus, according to sources, around 8,000 mt in total of shredded scrap have been booked since last weekend in Pakistan. Offers for ex-UK/EU shredded scrap have been voiced at $418-423/mt CFR, mainly the same as at the end of last week and up by $8-10/mt compared to the middle of last week.