Posted on 20 May 2021
Steel scrap prices in most regions across Asia rose again over the week of May 7-14, as firm demand in these markets continued to propel scrap prices upward, according to Mysteel’s latest survey.
In China, Mysteel’s steel scrap price index increased by another Yuan 460.4/tonne ($71.5/t) on week to Yuan 4,043.3/t on delivery and including the 13% VAT as of May 14, mainly thanks to the domestic steelmakers’ strong demand and these mills’ low scrap availability.
As of May 13, the capacity utilization rate of the 71 independent electric-arc-furnace (EAF) steelmakers across China which Mysteel monitors weekly had nudged up by 0.58 percentage point on week to 76.78%, as the continuing high profit margins China’s EAF mills were enjoying encouraged them to maintain high production.
Meanwhile, India’s steel scrap market also stayed strong last week, with the price of shredded scrap increasing by $25/t on week to reach around $510/t CFR as of May 17, Mysteel Global noted, a rise that was in line with strengthening scrap prices globally.
Yet despite the uptick in scrap prices, scrap market sentiment in India was bearish, as the rise in coronavirus infections has deeply impacted Indian steel mills’ production and so dampened their demand for scrap. Moreover, the upcoming monsoon season also continued to undermine the mills’ enthusiasm for producing, according to an Indian market watcher.
In Japan over May 10-14, H2 grade scrap prices rose Yen 5,000-6,000/tonne ($46-55/t) for both domestic sales and for export, with scrap traders in Tokyo attributing the uptick to scrap sellers shepherding their stocks in anticipation of further price rises, as reported.
“The Japanese scrap market has resumed from the quiet Golden Week (the first week in May), and currently, the firm steel sales have boosted market sentiment and prompted scrap prices to move higher,” a Japan-based market watcher told Mysteel Global. However, she also warned that the strong price rises had caused some concerns among Japanese scrap market participants.
Apart from the Asian scrap market, Turkey’s market for imported steel scrap also performed well last week, with imported HMS 1&2 (80:20) scrap prices increasing by another $43/t on week to $508/t CFR as of May 14, according to Mysteel’s assessment.
Turkish steel mills have actively procured steel scrap for June and July shipment. Also, some had replenished their inventories at the beginning of last week, as they feared that the country’s Bayram holiday over May 12-15 might affect trading activity, Mysteel Global learned.
Source:Mysteel Global
