STEEL SCRAP WRAP: Strong finished steel demand, limited supply boost prices

Improving demand for finished and semi-finished steel products across the major outlets has increased scrap prices in the major markets over the week to Friday November 13.

Turkish mills continued to pay more for deep-sea scrap cargoes, because they have secured a lot of rebar sales, while demand for billet in China drove up the prices in Asia. The supply of scrap, however, was tightening and supporting higher prices.

  • Turkish steel mills book three deep-sea cargoes at escalating prices
  • US scrap prices rise with a further increase expected
  • Strong demand for Vietnamese billet in China pushes up scrap prices
  • Tighter supply together with container freight problems raise Taiwan import scrap prices
  • India reports higher prices on material shortage.

Turkey
The Turkish steel mills resumed their deep-sea scrap purchases at higher prices this week with support from strong finished sales of long steel.

The country’s steelmakers booked three dee-sea cargoes early in the week, raising the HMS 1&2 (80:20) price to $306.50 per tonne cfr late on Wednesday from $305 per tonne cfr on Tuesday.

But suppliers raised their offers to Turkey to $320 per tonne cfr later in the week, pushing buyers away from the market for the moment.

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 US ferrous scrap export market has leapt past the $300-per-tonne threshold price for HMS 1&2 (80:20), with the latest sales to Turkey at $305-306.50 per tonne cfr. Market participants expected further increases in prices with strong rebar export sales out of Turkey.

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
Scrap import prices into Vietnam increased sharply amid a strong upturn in the Japanese market and firm demand for Vietnamese billet in China this week.

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

Taiwan
Import prices in Taiwan were boosted by limited offers and freight problems during the week. A shortage of containers, together with a spike in exports from China, has led to container shipping lines increasing the prices for scrap shipments in recent weeks.

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

India
Prices in India moved higher due to the material shortage before the market fell quiet ahead of the Diwali religious celebrations.

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

What to read next
The growth in Chinese shipments of batteries for energy storage systems (ESS) is far outstripping the growth in deliveries of batteries for electric vehicles (EVs), sources told Fastmarkets in the week to Friday November 1.
A new Chinese state-owned enterprise (SOE) called China Resources Recycling Group (CRRG) has been established to build a national platform for recycling and reusing resources, according to an announcement from Chinese officials on October 18. While details of the company's specific plans remain scarce, market participants remain concerned about weak market fundamentals, sources told Fastmarkets..
After a consultation period, Fastmarkets has discontinued the price due to a lack of liquidity and production of the commodity. All short-term forecasts associated with this price produced by the Fastmarkets research team, if any, have also been discontinued. If you have any comments on the discontinuation of this price, please contact Zihao Li by email […]
Steel leaders from throughout Latin America gathered during October 29-31 in Buenos Aires, Argentina, at Alacero Summit 2024 to learn more about the region's growing importance in the global steel market
On Thursday October 24, the US Department of Treasury and the Internal Revenue Service (IRS) released the final rules regarding the Section 45X credits under the US Internal Revenues Code. The final rules clarify definitions and confirm credit amounts for eligible components, including solar and wind energy, inverters, qualifying battery components and applicable critical minerals. […]
In late September, the People’s Bank of China (PBOC) announced a cut in the existing mortgage rate by an average of 50 basis points.