STEEL SCRAP WRAP: Asian prices diverge from subdued Turkish market

Global scrap prices in the key markets diverged in the week to Friday June 18, with those in Asia moving upward, while Turkish scrap prices fell amid slow buying driven by uncertainty over finished steel sales.

  • Turkish buyers had to pay a premium for US-origin shredded scrap
  • US export market reported new sales to Turkey
  • Solid demand in Vietnam resulted in higher prices
  • China reported stability in imported scrap prices
  • Competition for scrap on the Taiwan market was linked to higher prices
  • Indian scrap prices moved up despite weaker sentiment.

Turkey
Turkish steel mills booked just two cargoes this week, on the same day, with prices moving down by $10 per tonne from June 11. Mills were said to be keen to obtain sales of finished steel before booking further scrap cargoes.

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
Export prices for HMS 1&2 and shredded scrap sold to Turkey from the US East Coast took different directions in two cargo sales reported early this week. A clear preference has emerged for shredded material, which went for $7 per tonne more than in recent sales, while HMS prices were down by $2-3 per tonne.

The spread between HMS and shredded, typically $5 per tonne, widened to $19-20 per tonne on the basis of these sales, with domestic mills’ own significant appetite for the latter grade forcing Turkish importers to pay more for shredded material.

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 have increased amid stable demand for US- and Hong Kong-origin materials, and higher Japanese offers.

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

China
Prices in China were largely stable because the import arbitrage window remained closed.

Pricing history
steel scrap, heavy recycled steel materials, cfr China

Taiwan
Taiwanese buyers purchased cargoes at higher prices this week amid competition for supplies in the bulk-shipment markets.

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

India
Prices for scrap imported into India rose on active purchasing that tailed off toward the end of the week following a change in sentiment.

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

What to read next
Fastmarkets has corrected its MB-STE-0523 Steel scrap shredded auto scrap, consumer buying price, delivered mill, $/gross ton, weekly composite, which was published incorrectly since June 14.
China’s lithium prices continued to trend downward amid weak demand and futures weakness over the week to Thursday July 25
Fastmarkets proposes to amend the pricing frequency of its MB-STE-0889 steel scrap, index, heavy recycled steel materials, cfr east China, and MB-STE-0895 steel scrap, index, heavy recycled steel materials, cfr north China to once a month from the current weekly basis.
Fastmarkets will launch its new suite of US black mass payable indicators on Wednesday August 7, following a one-month consultation period.
Persistently high import volumes of lithium carbonate into China have intensified oversupply in the country's domestic market for the material at a time when demand remains weak, sources told Fastmarkets on Tuesday July 23
Aluminum scrap generation in Europe is expected to decrease in the current quarter due to lower demand from downstream metal producers amid the domestic seasonal summer slowdown, according to the latest market overview from the Bureau of International Recycling (BIR)