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STEEL SCRAP WRAP: Global prices fall on poor market sentiment

Scrap prices across the global markets moved down in the week ended Friday October 9, largely due to Turkey’s return to the market, although making purchases at lower prices than previously.

October 9, 2020
By Generic people page
  • Turkish steel mills purchase cargoes at lower prices
  • US export market follows Turkish lead
  • Vietnam reports thin trading
  • Taiwanese scrap import market dips ahead of holiday
  • Indian material booked at lower prices.

Turkey
Turkish steel mills were largely out of the deep-sea markets for most of this week, until Thursday when two cargoes were booked at lower prices than in the most-recent previous deals.

This was followed by another cargo traded against a lower price on Friday.

Market participants had been expecting the price downturn because Turkish steelmakers have been struggling to sell long steel products, due to limited demand.

Pricing history
steel scrap HMS 1&2 (80:20 mix), Northern Europe origin, cfr Turkey.
steel scrap HMS 1&2 (80:20), US origin, cfr Turkey.

United States
At the time of Fastmarket’s report on October 7, the United States’ ferrous scrap export market was still quiet, with new no cargo deals reported, while recyclers operating at the docks adjusted their buying prices further amid expectations of lower-priced sales.

The next day, however, Turkey returned to the markets and prices did fall, as expected.

Pricing history
steel scrap HMS 1&2 (80:20), export index, fob New York.
steel scrap shredded scrap, export index, fob New York.
steel scrap, HMS 1&2 (80:20), export index, fob Los Angeles.

Vietnam
Prices for HMS material into Vietnam narrowed upward this week, despite thin activity with buyers taking a wait-and-see approach.

Pricing history
steel scrap, HMS 1&2 (80:20), cfr Vietnam.

Taiwan
Prices in Taiwan moved downward this week on lower prices being agreed for cargoes ahead of a pause in trading for a national holiday.

Pricing history
steel scrap, HMS 1&2 (80:20 mix), US material import, cfr main port Taiwan.

India
On the Indian scrap market, prices moved down following a flurry of trading.

Pricing history
steel scrap, shredded, index, import, cfr Nhava Sheva, India.

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