CHINA STEEL SCRAP: Buyers consider new scrap origins

Some Chinese mills are seeking alternative scrap import suppliers because of expensive offers for Japanese heavy scrap (HS), sources said on Friday July 16.

Bids were heard at $535 per tonne cfr northern China on July 16, which would be equivalent to $525 per tonne cfr eastern China, and no new offers were heard on July 16. Prior to that, the latest to come in was on July 14 at $580-590 per tonne cfr China.

But some mill sources have recently received offers of Canadian scrap cargoes, they told Fastmarkets.

“The quality of the material is similar to the current grade of heavy scrap we have been using, which is acceptable to us,” a mill source based in Hebei province said. “Once we further confirm their scrap quality, it is highly likely we will book a trial cargo.”

The source was not willing to disclose the exact offer level for the Canadian scrap cargo but described it as “a very favorable price.”

Japan has been China’s most important scrap importer since China officially eased restrictions on scrap imports in January 2021. China imported 111,432 tonnes of ferrous scrap in May 2021, 71.2% of which originated in Japan.

Steel scrap negotiations between Chinese buyers and Japanese sellers have been limited in recent weeks, however, due to large discrepancies between bids and offers.

“[There are a] very limited number of offers from Japan to China right now,” a Japanese exporter source said. “The Chinese buyers were showing little interest in booking cargoes from Japan, so many sellers stopped offering as well.”

Key market participants had believed that the maximum workable prices for buyers on July 16 would be about $540-550 per tonne cfr northern China, which would be roughly equivalent to $530-540 per tonne cfr eastern China.

Fastmarkets’ daily price assessment for steel scrap, heavy recycled steel materials, cfr China, which takes into account prices at ports in eastern China, was $530-540 per tonne on Friday, unchanged from a day earlier.

Taiwanese buyers have continued to pressure prices lower, securing containerized HMS 1&2 (80:20) materials from the west coast of the United States at $460 per tonne cfr Taiwan most recently.

Taiwanese market sources continue to harbor bearish sentiments due to the lack of demand from other Asian countries.

As well, the Vietnamese scrap import market remains in a state of almost “total shutdown” due to the worsening Covid-19 pandemic, a source in the country said. This has led to lock-downs and business closures in key commercial hubs such as Ho Chi Minh City and Hanoi.

Offers of bulk H2 cargoes were at $490-505 per tonne cfr Vietnam, while bulk HMS 1&2 (80:20) from Australia and the US were at $510-520 per tonne cfr Vietnam. There was low interest for imported cargoes.

What to read next
This strategic launch is designed to better delineate the relationship between these two competing steelmaking materials. The differentials offer the market a single reference price denoting the spread between Turkey import billet and No1 and No2 heavy melting scrap (80:20) and between Turkey import billet and shredded scrap exported from the US East Coast respectively. […]
The United States' copper recycling industry is ramping up pressure on policymakers to impose some form of export controls on high-purity copper scrap, arguing that current trade dynamics – particularly with China – are distorting prices, weakening domestic capacity and undermining national security goals.
After a month-long consultation period, Fastmarkets is amending the below specifications, following no negative feedback from market participants and internal data analysis. The following changes will take place: The new specifications are as follows, with amendments in italics: MB-CU-0002 Copper grade 1 cathode premium, ddp Midwest US, US cents/lb Quality: Grade A 99.9935% min copper cathode conforming to LME […]
Explore the implications of the 50% tariff on the pulp market, impacting trade dynamics and costs for industries reliant on pulp.
The publication of the affected prices was delayed for 50 minutes. The following indices were published late: MB-MNO-0001 Manganese ore high grade index, cif Tianjin, $ per dmtu MB-MNO-0002 Manganese ore semi carbonate index, 36.5% Mn, fob Port Elizabeth, $/dmtu MB-MNO-0003 Manganese ore semi carbonate index, 36.5% Mn, cif Tianjin, $/dmtu These prices are a part of the […]
The global copper market has finally received the widely anticipated news that imports to the US will be tariffed from August 1. The finer details of the tariffs, including their scope, and whether key copper-exporting nations like Chile, Canada and Peru will be exempt, remain unclear.