In the deals disclosed in Turkey’s import scrap market this week, deep sea scrap prices have been moving up at a very slow pace.
An ex-Demark deal disclosed to the market today, April 26, done by a Marmara-based producer, confirmed that ex-Baltic HMS I/II 80:20 scrap prices have increased to $385.5/mt CFR Turkey. This level is similar to the ex-Baltic deal closed from Sweden earlier this week.
An Amsterdam-based export yard is currently paying €310/mt DAP for scrap collection, while three other export yards located in Belgium and Amsterdam are paying higher levels in the range of €315-320/mt DAP. A Germany-based sub-collector contacted on April 25 mentioned that its own collection prices for uncut scrap material have never dropped below €260-270/mt delivered. Collection prices in the Baltic segment are at around €325-330/mt DAP for HMS I scrap. Market sources report that Germany is paying higher levels for this grade, with two separate sources indicating prices for HMS I in Germany at €355-360/mt delivered to mill. Collection prices supported by the ongoing slow scrap flow in the EU mean that export yards will try to keep their offer prices to Turkey firm and even try to find higher levels in the coming period.
Under the current conditions, the deep sea benchmark HMS I/II 80:20 scrap prices in CFR terms have moved up by 0.66 percent week on week. The prices are now 0.9 percent lower month on month in the deep sea segment, with prices being in the range of $380.5-387.5/mt CFR.
SteelOrbis has learned that the average price for dock delivered HMS I/II 80:20 scrap in Houston is being heard at approximately $300-$315/gt, and in Portland is being heard at approximately $290-$305/gt. The dock delivered price range for HMS I/II 80:20 scrap in Philadelphia is now being heard at approximately $275-$300/gt, and the price in New York is being heard at approximately $280-$300/gt.
SteelOrbis has learned that the current price for Mexican domestic shredded scrap is still at MXN 6,550/mt ($374/mt) ex-works, unchanged in pesos in past week. Additionally, HMS I/II scrap prices are also still being heard at MXN 4,650/mt ($265/mt) ex-works, unchanged in pesos week on week.
Local scrap prices in Italy have remained unchanged over the past week. Market participants are optimistic, as mills that had not increased their purchase prices by €5-10/mt last week have done so in recent days, and further increases are expected in May since new scrap continues to be hard to find and sellers' stocks are falling. Supply and demand continue to be in balance, although mills are still struggling with sales of finished products and will reduce or stop production until May 1.
The Spanish scrap market has also been stable this week. A cautious attitude continues to prevail among market participants, though sources report a slight increase in demand compared to supply.
Domestic scrap prices in Germany have moved up over the past month. Demand from European producers has supported the slight price increase in April. The low level of scrap availability has been another factor. The absence of Turkey on the export side has limited the price increase for lower grades.
European collection prices are currently at around €310-320/mt DAP. A fluctuation was seen in April, with collection prices falling to €305/mt but they recovered quickly after Turkey’s return to the market. Market sources in Germany say that demand received from European mills has improved over the past week.
Import scrap offers to Taiwan have softened over the past week. Market players report that the Taiwanese rebar market has been sluggish this week. Offers for ex-US HMS I/II (80:20) scrap in containers have remained limited in Taiwan, with offer prices standing at $360-365/mt CFR. Ex-Japan offers for H1/2 (50:50) scrap by bulk to Taiwan have moved down from $368-372/mt CFR recorded late last week to $366-372/mt CFR.
The scrap market in Vietnam shows little appetite for import scrap but there is hope for a recovery. According to Vietnamese sources, there is some demand for steel in the country. Japanese H2 scrap offers to Vietnam have softened a little on the upper end by $3/mt week on week and are currently in the range of $375-377/mt CFR. Offers for ex-US bulk HMS I/II 80:20 scrap are now at $390-395/mt CFR Vietnam, moving up from $385-390/mt CFR.
South Korea is also relatively silent. Domestic scrap prices are declining in the country due to lower capacity utilization rates. Indications for ex-US HMS I/II 80:20 bulk cargoes for South Korean buyers are at around $400/mt CFR. SteelOrbis has also heard that bid prices of South Korean steelmakers for Japanese scrap are now at around JPY 50,500/mt ($322/mt) FOB.
SteelOrbis’ reference price for ex-Japan H2 scrap has moved up on Japanese yen-basis from JPY 49,500-51,500/mt ($327-340/mt) FOB to JPY 51,400-53,350/mt ($328-340/mt) FOB. Hardly any change has been observed in the dollar-based prices.
This week, trade activity has improved to some extent in Bangladesh with more deals signed for containerized scrap at mainly the same prices as reported last week. Specifically, in the containerized segment, several deals for ex-EU/UK shredded scrap have been signed at $430-431/mt CFR, the same as last week. Besides, following offers for ex-Australia shredded scrap at $425/mt CFR last week, this week a few deals for small quantities are reported to have been signed at $425/mt CFR. Furthermore, a parcel of 500 mt of ex-Malaysia shredded scrap is reported to have been booked at $430/mt CFR. Furthermore, deal prices for ex-EU/UK HMS I/II 80:20 scrap in containers have been assessed at $408-410/mt CFR, against $410/mt CFR last week. Besides, according to sources, a deal for ex-Canada HMS I scrap has been reported at $405/mt CFR this week. In the bulk segment, more inquiries have been reported, which have resulted in more negotiations and consequently occasional deals. Particularly, a deal for ex-US scrap has been confirmed at $403/mt CFR for 13,000 mt of HMS I/II 90:10 and at $414/mt CFR for 14,000 mt of PNS scrap. According to sources, offers for ex-US HMS grade scrap have been assessed at $405/mt CFR, mainly the same as last week.
Import scrap activity in Pakistan has been mainly moderate, with many buyers holding back in anticipation of a clearer price direction. At the same time, those customers who have remained in the market have continued to push for additional discounts, and so the limited deals which have been reported this week have been signed at slightly lower levels. Pakistani buyers are reported to have booked around 3,000-5,000 mt in total of ex-EU/UK shredded scrap in containers at around $428-430/mt CFR, against $430/mt CFR last week. Besides, by the middle of the week, most offers for shredded scrap rolled back to the offer level reported two weeks ago - $425/mt CFR. In the meantime, offers for ex-Middle East HMS grade scrap have been heard at $405-410/mt CFR, against $405/mt CFR last week.