Global ferrous scrap trading continued to rise last week, with active deals in Turkey following the uptick in domestic and international markets.
Japan's Tokyo Steel increased its scrap prices for the second time in February this week, following the increase in offers from South Korean and Vietnam-based mills. Meanwhile in India, this week HMS continued to make deals on small quantities for quality material.
Turkey's imported scrap prices rised
Turkey's import scrap offers rose last week. Prices rose slightly as suppliers increased their offers for cargo shipments during the remainder of March and buyers actively avoided new orders.
US origin HMS 1&2 (80:20) scrap prices increased by $3-5 to $507 CFR Turkey.
Japan's ferrous scrap export offers set new record
Japanese scrap export offers have increased further, reaching an all-time high since mid-2017. Prices rose on the back of limited scrap availability and increased demand in Japan. The main reason for the continued price upward trend was the decline in shredded scrap production as automobile production fell during the sawdust shortage.
Japanese H2 scrap export prices rose by JPY 58,000/tonne FOB and JPY 2,000/tonne more.
Kansai scrap export tender offers skyrocket
The Japanese Kansai-Cheorwon scrap export tender was concluded recently for Feb'22 and the loading time ranged from 21-Feb'22 to 31-Mar'22. The winning bid was awarded in June'18 for a total of 5,000 tons, predominantly Japanese H2 scrap, with an average price of JPY 66,300/ton ($573/t) followed by the second highest bid of JPY 58,220/ton ($503/t) FAS. In particular, offers in Kansai have increased by $20/ton compared to the Kanto auction, which was concluded last week.
Hyundai Steel further increases its offers for Japanese scrap
On February 17'22, Hyundai Steel increased its offers for Japanese scrap by JPY 3,500/tonne ($30/t) for H2 grade and JPY 3,000/ton ($26/t) for HS grade from the previous year. Foreign sources reported that the last bid was given on 10 February'22. Offers for H2 scrap are currently at JPY 58,500/tonne ($507/t) while offers for HS scrap are at JPY 64,000/ton ($555/t) FOB. Offers for Shindachi bar scrap and milled material stand at JPY 64,000/tonne ($555/t).
Tokyo Steel raises scrap procurement prices by up to $17/t
Tokyo Steel increased its scrap purchasing prices by as much as $17/ton on February 14'22 for the second time this month. Post revision, the company's offer price for H2 scrap stands at JPY 57,000/tonne ($494/t) delivered to Tahara and Utsunomiya mills as of February 15'22. The increase in bids in the Kanto scrap export tender pushed local bids up.
Vietnam's import scrap offers rise
South East Asia's imported scrap market has seen a sharp increase in offers from the last Kanto auction. Vietnam's import scrap offers rose further after the increase in Japan's Kanto scrap export tender. The rise in billet prices and the outlook for better finished product demand supported import scrap prices.
The Japanese bulk H2 scrap price was up $25-30/tonne at $550/ton CFR.
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