With several deals confirmed on May 10 and May 11, Turkey’s import scrap market has showed signs of stabilization, though the likely duration of this positive trend is not known yet.
It has been heard that some Marmara and Izmir-based Turkish producers have managed to sell high volumes of rebar in the local market this week. Some market players think that Turkish rebar traders are closing their open positions ahead of the elections, while some say this is a move to avoid risks since stocking at US dollar prices has become hard for everyone. Nevertheless, this livelier demand for steel has supported the deep sea scrap market and led producers to make inquiries which have resulted in deals. Meanwhile, most market players surveyed by SteelOrbis said the new deep sea scrap bookings will lead to a stabilization of prices.
It is also observed that in Europe the number of sub-collectors resisting bids coming from export yards at around €290s/mt DAP is rising. One German sub-collector informed SteelOrbis today that some bids are rising. As compared to yesterday, DAP-based collection prices of export yards have increased by $5-10/mt to €295-300/mt for HMS I/II 80:20 grades. Still, some sub-collectors believe prices should return to €310/mt DAP and above, citing the slow scrap flow to yards. Amid Turkish producers’ willingness to book at least one or two deep sea cargoes for June before the first round of the elections, Turkey’s import scrap market is on a sideways trend for now.
Under the current conditions, the deep sea benchmark HMS I/II 80:20 scrap in CFR terms has decreased by 5.65 percent week on week. The prices are now 14.31 percent lower month on month in the deep sea segment, with prices being in the range of $367-375.5/mt CFR.
SteelOrbis has reported that scrap prices in the US Northeast and Pittsburgh regions have settled down by $41/mt for HMS I grades, and down $50/mt for higher grades.
The Kanto scrap export tender in Japan has closed with lower price levels month on month against the backdrop of low demand. Asian buyers are still cautious, citing lower demand for steel in the region. The Kanto tender average price was at JPY 46,173/mt ($341/mt) FAS, down by JPY 4,383/mt, with dollar-based quotations declining by $39/mt from April. A total of 20,500 mt of scrap was booked. 15,000 mt of the volume will be shipped to Bangladesh, while the rest will go to South Korea or Taiwan.
Following the significant fall observed in Japan’s Kanto scrap export tender, Tokyo Steel, the leading EAF-based steel producer in Japan has also cut its domestic scrap procurement price. Tokyo Steel’s general range for H2 grade scrap has moved down by JPY 2,000-2,500/mt from the levels recorded on April 215 to JPY 45,000-47,500/mt ($333-351/mt), depending on the mill. On May 9, Tokyo Bay FAS-based prices for H2 grade scrap were at JPY 48,000-49,500/mt ($355-366/mt) FOB. Meanwhile, HS grades are standing at JPY 51,000-52,500/mt ($377-388/mt) FAS, and shindachi grades are at JPY 50,000-51,000/mt ($369-377/mt) FAS.
The downtrend in South Korea’s import scrap procurement prices has continued this week. Domestic steel producer Hyundai Steel has announced its bids today, May 11, for Japanese scrap with a significant price reduction. Hyundai Steel has reduced its bid for Japanese H2 grade scrap to JPY 46,300/mt ($342/mt) FOB. The buyer’s price idea for H1/2 (50:50) from Japan has been released at JPY 46,800/mt ($346/mt) FOB, declining by JPY 1,500/mt or $14/mt since April 27. As compared to the levels on April 27, Hyundai Steel has also reduced its bids for shredded and HS scrap by JPY 1,500/mt ($14/mt) and JPY 1,000/mt ($10/mt) to JPY 49,300/mt ($364/mt) FOB and JPY 50,300/mt ($372/mt) FOB, respectively.
Vietnam’s import scrap market is still silent. Since Vietnamese buyers’ bids are on the low end, market players stated that it is hard to get material. Meanwhile, following yesterday’s Hyundai Steel bids for Japanese scrap, POSCO has also announced its bids today, May 12. In the current week, Vietnamese mills have voiced their bids for Japanese bulk H2 scrap at $360/mt CFR, $30/mt lower than the offer levels recorded two weeks ago.
As a result, the SteelOrbis reference prices for ex-Japan H2 scrap have declined by JPY 1,500 ($12/mt) on the lower end and by JPY 1,127/mt ($10/mt) on the upper end over the past week to JPY 46,300-47,173 ($344-350/mt) FOB. The lower end of the range represents the recent Hyundai Steel bid, while the higher end of the range reflects the Kanto tender’s price levels since there is a lack of deals coming out of Vietnam.
Meanwhile, POSCO has shared its bids for Japanese HS, shindachi and shredded grades at JPY 53,500/mt ($397/mt) CFR, JPY 53,000/mt ($393/mt) CFR and 52,500/mt ($390/mt) CFR, respectively.
Taiwan’s import scrap market has been impacted by the return of South Korea as a competitor. This week, a deal for ex-US HMS I/II 80:20 scrap in containers to Taiwan was closed at $355/mt CFR, indicating a $5/mt fall on the upper end. According to market sources, US suppliers are also taking a step back from Taiwan as they find the current levels very low. The lowest offer levels for Japanese H1/2 50:50 scrap by bulk to Taiwan are now at $370-375/mt CFR, $5/mt lower than last week.