STEEL SCRAP WRAP: Markets impacted by poor sentiment due to high freight rates, rising Covid-19 cases
Global ferrous scrap prices have continued to fall in the week to August 13 due to high freight rates, Covid-19 outbreaks in importing countries and poor downstream steel demand.
- Turkish scrap prices fell amid weak downstream demand
- United States scrap exports were poor due to high freight costs
- Weak demand for imports in Vietnam due to Covid-19
- China abstains from purchasing due to large bid-offer spread
- Taiwan reports price rebound amid reluctance to offer lower
- Indian scrap demand remains tepid on monsoon season
Turkish steel mills have been out of the spot market in the week due to falling downstream steel prices, which have continued to weigh on buying sentiment and which have reduced appetite for imports.
News of transactions concluded late the previous week came to light at the start of the week, with overall price levels falling from the last tranche of deals.
The recent spike in freight rates have limited exports from both the East Coast and the West Coast.
Import prices for ferrous scrap in Vietnam fell due to the worsening Covid-19 pandemic dampening downstream steel demand.
Chinese import steel scrap trade was largely silent amid a large bid-offer gap.
Containerized ferrous scrap import prices in Taiwan started to rebound from Thursday amid increasing reluctance by sellers to drop prices further.
Prices for shredded steel scrap into India continued to trend downward because demand remained tepid during monsoon season.