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.

Turkey
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.

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
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.

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
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.

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

Taiwan
Taiwanese buyers have swooped on lower prices from traders, which were slashing their offer prices to offload cargoes quickly.

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

India
The price of scrap into India went down in the latest trades on the market.

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

What to read next
The publication of Fastmarkets’ Mineral Sands Monthly price assessments for Thursday October 3 was delayed to 17:51 from 16:00 due to a reporter error. Fastmarkets’ pricing database has been updated.
The publication of Fastmarkets’ price assessments of calcined alumina on Thursday October 3 were delayed due to a reporter error. Fastmarkets’ pricing database has been updated.
The publication of Fastmarkets’ India import aluminium scrap price assessments for Wednesday October 2 were delayed because of the Gandhi Jayanti public holiday in India. Fastmarkets’ pricing database has been updated.
The heightened importance for the steel reinforcing bar (rebar) industry was apparent to market participants immediately, and has expanded to include multiple arms of the wider construction sector, including merchant bar, beams and wire rod, according to multiple sources in the rebar and general construction markets contacted by Fastmarkets on Wednesday October 2. The Category 4 […]
The deadly storm may lead to a temporary near-to-medium-term uptick in steel prices, as scrap flows dwindle and the need for new steel soars, sources said. “[Original equipment manufacturers] and service centers will experience a boost in sales to rebuild from the hurricane,” one mill source said. “The rebuild includes new equipment like tree-trimming trucks, […]
The economy is expected to grow gradually, driven by strong exports, investments in emerging industries and stimulus packages.