Turkey’s import scrap market has indicated a small decline during the past week. Turkish mills have completed their bookings for February shipments and are in no rush to buy more cargoes. Early in the current week, some ex-Europe deals disclosed to the market showed that deep sea scrap prices had stabilized. However, later in the week, a Canadian scrap seller entered the Turkish market, resulting in two deals at reduced prices. The last time this exporter was in the market was in March last year.
A couple of major Turkish mills are looking for cargoes due to their higher crude steel production capacities. SteelOrbis hears that there are several US-based scrap suppliers actively seeking opportunities to sell their cargoes to Turkey. One source said there are up to five ex-US cargoes. SteelOrbis has heard that an ex-US scrap supplier offered a cargo with the HMS I/II 80:20 scrap price at around $425/mt CFR Turkey. While several European scrap suppliers are in the market intending to conclude deals, a source said that offer levels for ex-EU scrap cargoes are at around $420-425/mt CFR Turkey. At European ports, delivery prices are at around €335-345/mt DAP, depending on the scrap grades. Although the euro-US dollar exchange rate has softened a little to 1.08 to the dollar, the slow scrap flow to yards is an ongoing problem.
Under the current conditions, the deep sea benchmark HMS I/II 80:20 scrap prices in CFR terms have moved down by 0.24 percent week on week. The prices are now 0.94 percent lower month on month in the deep sea segment, with prices being in the range of $418-423/mt CFR.
January scrap trade in the US was a bit of a mixed bag, with mills pushing hard to take prime scrap prices down, and sellers throughout the US putting up quite a bit of resistance to the trend. And while some regions ultimately settled at down $30/gt for busheling, other regions were able to hold prices at sideways from December settled levels. Scrap market sources in multiple regions are saying that winter weather and snowstorms are impacting deliveries, which has the potential to impact pricing during next month’s buy-cycle. Depending on how the rest of the month goes, this may or may not influence scrap availability and price trends going into February. Other sources also believe that today’s snapshot of the market points to sideways to soft-sideways pricing.
SteelOrbis has learned that the current price for Mexican domestic shredded scrap is now at MXN 9,050/mt ($520/mt), compared to MXN 8,900/mt ($515/mt) last week. Additionally, HMS I/II scrap prices are now being heard at MXN 7,800/mt ($448/mt), compared to MXN 7,750/mt ($443/mt) a week ago.
The local Italian scrap market has seen increases of €5-20/mt for contracts closed in the past week, especially at the lower end of the range and for shredded scrap, which "is the most requested because there is little availability," according to one market participant.
As for market trends in the short and medium terms, uncertainty reigns among traders because of the many variables at play, amid ongoing conflicts and the recession in Germany directly affecting rebar prices. Many market players expected a clearer situation after the holidays, but the overall scrap demand picture still raises many doubts instead. Several sources, however, expect prices to remain stable as some large steel mills are not willing to increase scrap purchase prices and others would like to lower prices as demand for finished products does not seem to be improving.
Prices recorded in Japan’s Kanto scrap export tender have increased as compared to the levels recorded in December, while the total tonnage changing hands has also increased. In the Kanto tender, the highest bid was at JPY 53,081/mt FAS, indicating an increase by JPY 2,061/mt as compared to the levels recorded in early December. SteelOrbis has learned that 15,000 mt of scrap have changed hands in the tender, while the buyer is Bangladeshi.
The leading Japanese EAF-based steel producer Tokyo Steel has increased its prices for the first time since the small upward revision it made on December 9 last year. Tokyo Steel’s general range for H2 grade scrap has increased by JPY 2,000/mt and is now at JPY 50,000-53,000/mt ($341-361/mt) depending on the mill.
Taiwan’s import scrap market has been following diverse trends. Ex-US offers to Taiwan have softened a little, though prices in the actual deals have increased. On the other hand, Japanese offers have increased week on week due to the depreciation of the Japanese yen. Offers for ex-US HMS I/II (80:20) scrap in containers to Taiwan are now at $375-385/mt CFR. Japanese scrap suppliers’ offers for H1/2 (50:50) scrap by bulk to Taiwan have increased to $390-411/mt CFR.
Vietnamese import scrap market has indicated little change over the past week in terms of demand, while import scrap prices have remained stable. Prices for ex-US containerised HMS I/II 80:20 scrap has remained stable week on week at $385/mt CFR Vietnam. Meanwhile, prices for Japanese H2 grade scrap to Vietnam have moved sideways over the past week at around $400/mt CFR.
In Bangladesh, most offers heard for containerized scrap have remained stable but with an upward bias reported in new deals. In particular, at least 3,000 mt in total of ex-Australia HMS I/II 90:10 scrap are reported to have been booked at $415/mt CFR, while another deal for 1,000 mt of ex-Australia shredded scrap has been signed at $435/mt CFR, up by $5/mt over the past week. Besides, a deal for ex-Middle East HMS grade scrap in containers has been signed at around $430/mt CFR, against offers at $420/mt CFR last week. Meanwhile, offers for ex-Europe shredded scrap in containers have been voiced at $440-445/mt CFR, up by $5/mt week on week, while HMS I/II 80:20 scrap has been offered at $415-420/mt CFR, the same as last week. As for the bulk segment, both buyers and sellers have continued to avoid business, with only a deal for ex-Japan scrap reported to have been done this week. Specifically, a booking for 15,000 of ex-Japan H2 scrap in the Kanto Tetsugen export tender was done at JPY 53,081/mt FAS, indicating an increase by JPY 2,061 as compared to the levels recorded in early December. The dollar-based prices have increased from $354/mt to $362/mt from last month. The price translates to around $430-435/mt CFR Bangladesh.
In Pakistan, market insiders have continued to be extra cautious over the higher freight rates in new purchases. At the same time, import scrap prices in Pakistan have increased this week, with new deals reported at higher levels, since bookings of ex-Europe material have resumed via the Suez Canal route. Offers for ex-EU/UK shredded scrap in containers have been voiced at $440-450/mt CFR, against $435-445/mt CFR at the beginning of the week, and up by $5-10/mt week on week. Besides, according to sources, following several deals for ex-EU shredded scrap at $435/mt CFR, around 1,000 mt of the material has changed hands at $437/mt CFR. Meanwhile, offers for ex-Middle East shredded scrap have been voiced at $445-450/mt CFR, up by $5-10/mt week on week, while HMS grade scrap has been offered at around $410/mt CFR, according to sources.