STEEL SCRAP WRAP: Seasonal slowdown sends down prices in major markets [CORRECTED]

The Turkish steel mills continued to limit their deep-sea scrap bookings in the week ended Friday July 16 due to weak finished steel sales, while the downturn in the country had a knock-on effect on prices in the global markets.

  • Turkish mills restrict deep-sea purchases to put downward pressure on prices
  • Summer slowdown hits US export market
  • Covid-19 pandemic shuts down local long steel and scrap markets in Vietnam
  • Domestic supply tightened by rainy season in the north and high temperatures in the south of China
  • Lower prices in Turkey and limited demand weaken Taiwanese scrap values
  • Tepid demand continues to push Indian scrap prices downward.

Turkey
Turkish steel producers managed to secure lower prices from deep-sea suppliers after continuing to keep their deep-sea bookings at a slow pace.

The mills had been keeping purchases as slow as possible due to the weak markets for finished steel products.

The Turkish steel mills booked five deep-sea cargoes last week.

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
The decline in prices for deep-sea scrap exports to Turkey was expected to continue, extending throughout the global scrap markets with the start of the traditional summer slowdown period.

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
The demand for imported scrap in Vietnam was sluggish this week due to the Covid-19 pandemic, which caused a complete shutdown in the local long steel and scrap markets.

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

China
Chinese scrap import prices remained stable despite supplies of domestic scrap being tightened by the rainy season in the north and by high temperatures in the south.

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

Taiwan
Prices for containerized ferrous scrap in the Taiwan import market went down on softer sentiment among end-users and falling prices in the Turkish import market.

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

India
Prices for shredded imports into India fell further with demand remaining tepid.

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

(The table accompanying this story has been updated with the correct price for steel scrap, shredded, import, cfr delivered Turkish port, which was $498.50 per tonne on July 16, not $493.50 per tonne as originally shown.)


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