STEEL SCRAP WRAP: Global prices continue surge on strong demand

Steel scrap prices continued to surge this week due to sustained demand from buyers in all markets, with the exception of India. Downstream steel prices have supported raw material price increases in Asia, with buyers melting scrap to feed demand for billet and long steel products.

  • Turkey books Canadian, Baltic Sea scrap
  • US export prices to go higher
  • Vietnam buys deep-sea bulk cargoes
  • Taiwan chases containerized scrap prices higher
  • Indian market remains subdued.

Turkey
Turkish steel mills continued to purchase imported scrap cargoes at higher prices to feed downstream long steel production. Steel mills in the country have been actively offering rebar cargoes to Hong Kong and Singapore, with at least one cargo sold and one more under price negotiation.

Turkish scrap buyers booked Canadian and Baltic Sea cargoes this week instead of United States-origin material, which has been offered at higher prices compared with other origins.

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
Market sources expected more purchasing activity in the near term and at higher prices, due to strong demand from global steel mills and limited scrap flows.

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
Vietnam has purchased at least two deep-sea cargoes this week, turning away from Japanese H2 cargoes due to the narrow premium.

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

Taiwan
Taiwanese buyers have continued to purchase containerized cargoes at higher prices because of high prices for finished products.

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

India
Indian prices were largely unchanged this week due to lackluster interest for imports among mills.

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

What to read next
Fastmarkets has clarified the specifications of its copper grade A cathode and non exchange-deliverable equivalent-grade (EQ) copper cathode premiums, to avoid any confusion regarding the deliverable status of its copper cathode assessments.
This consultation, until which is open until June 24, 2023, seeks to ensure that our methodologies continue to reflect the physical market under indexation, in compliance with the International Organization of Securities Commissions (IOSCO) principles for Price Reporting Agencies (PRAs). This includes all elements of our pricing process, our price specifications, and publication frequency. You […]
Fastmarkets invited feedback from the industry on the methodology for its audited lithium and spodumene price assessments, via an open consultation process between April 18 and May 17, 2024. This consultation was done as part of our published annual methodology review process.
Fastmarkets invited feedback from the industry on the pricing methodology for its International Organization of Securities Commissions (IOSCO)-audited ferrous scrap materials, via an open consultation process between April 4 and May 6, 2024. This consultation was done as part of our published annual methodology review process.
Chinese cobalt metal prices fell to an eight-year low on Wednesday May 8, amid significant market oversupply and bearish sentiment, market participants told Fastmarkets
Here are the four key takeaways from the US scrap market participants in our May survey