STEEL SCRAP WRAP: Prices yet to hit bottom in downward drive
Global ferrous scrap prices have yet to hit the buffers in their downward plunge. Buyers in Asia were holding back from purchases in the week ended Friday January 29, swooping in only for low-priced cargoes, but demand from China could support prices in the near term.
- Turkey re-enters spot market
- Bearish sentiment in US on lower transaction prices
- Taiwan market in rapid descent
- Covid-19 in Vietnam damps sentiment
- India reports lower-priced bookings.
Turkish scrap buyers re-entered the spot market from Wednesday onward, booking deep-sea cargoes from the UK and United States. They had abstained from buying in the earlier part of the week due to weak demand for downstream billet and long steel products.
The latest transactions were heard at $425 per tonne cfr for a US-origin cargo comprising shredded and plate & structural scrap. Other transactions were concluded at $416 per tonne cfr Turkey, also for US-origin materials. A UK-origin cargo was sold at $408 per tonne cfr Turkey on Wednesday.
Sentiment in the US has turned increasingly bearish due to recent sales of European cargoes to Turkey. Talk of significantly lower ferrous scrap prices continued to be heard in the US export market, based on such sales.
Lower prices have resulted from a resurgence in Covid-19 infection rates near the capital Hanoi, and continuing cuts in Japanese export prices due to power outages and maintenance work at Tokyo Steel’s Utsunomiya facility.
steel scrap, HMS 1&2 (80:20), cfr Vietnam.
Taiwanese buyers have swooped on lower prices from traders, which were slashing their offer prices to offload cargoes quickly.
The price of scrap into India went down in the latest trades on the market.
steel scrap, shredded, index, import, cfr Nhava Sheva, India.