STEEL SCRAP WRAP: Weak demand in major markets pulls down prices
Poor demand in key import markets in Turkey and Asia continued to pull steel scrap prices downward in the week ended Friday September 3. High freight costs and a lack of container ships also damped spot trading liquidity.
- Turkish mills book handful of cargoes for requirements
- US sees limited export transactions
- China demand weak amid more production cuts
- Vietnam spot liquidity limited due to holidays
- Taiwan looks toward Japanese scrap
- Indian prices steady in recent trades.
Turkish steel mills booked a handful of scrap cargoes this week, but strictly to cover requirements amid poor sales of finished steel in the export and domestic markets.
Buyers were heard bidding as much as $10 per tonne lower than previous transactions, but did not manage to book any materials.
A short working week, due to public holidays in Turkey and the UK on August 30, also limited spot trading activity.
The US saw limited transactions to key import markets in Turkey and Asia this week.
More production cuts announced in various parts of China have added further uncertainty to market sentiment, with buyers continuing to bid at levels far below offers for Japanese HS scrap.
Spot liquidity was limited by a four-day holiday starting from September 2. The worsening Covid-19 pandemic also damped import demand.
steel scrap, HMS 1&2 (80:20), cfr Vietnam.
Buyers of containerized scrap were increasingly looking toward bulk supplies of Japanese H1&H2 (50:50) to fill a supply gap.
Prices for shredded steel scrap into India remained steady after trading activity was resumed.
steel scrap, shredded, index, import, cfr Nhava Sheva, India.