IRON and STEEL
Scrap & Recycling
SteelMint learned from the updates that South Korean leading EAF steelmaker- Hyundai Steel has recently booked two more bulk ferrous scrap cargoes from the US.
The steelmaker reported to have contracted around 40,000 MT cargo from Schnitzer scrap yard and 43,000 MT of cargo from SIMS scrap recycler at an average equivalent price of (HMS 1) USD 312/MT, CFR South Korea.
As per data available with SteelMint, the company had booked one June shipment bulk cargo at USD 333/MT, CFR during the first week of April while another bulk cargo was booked for equivalent HMS 1 at USD 329/MT, CFR three weeks back. Thus, bulk scrap prices from US suppliers have been observed a sharp fall of around USD 17/MT as against prior bulk contract made.
Hyundai’s bid for Japanese H2 scrap was at JPY 31,000/MT (USD 278) on 26th April before starting of Golden Week holidays.
Market awaits Kanto’s scrap export tender response - Most of the Japanese market participants are waiting for Kanto Tetsugen monthly scrap export tender, scheduled on 10th May for this month to have more clarity on market direction. Participants believe that Japanese prices have already reached the bottom and may rebound in the near terms.
A spokesman of the Afghan ministry of oil and gas rejected media reports claiming that the country has stopped crude imports from Iran.
Turkey has closed its ports to Iranian oil, fully complying with US sanctions against its main supplier, despite Ankara publicly criticizing the United States’ move to end import waivers and warning of a struggle to tap alternative producers.
The United States is increasing its oil imports from Russia, according to a Bloomberg source, as US refineries clamor for more oil now that refineries oil supplies have dried up.
Pellet offers for this week increased sharply in the recently concluded deals. SteelMint’s assessment stands at INR 6,900-7,000/MT (ex-Raipur, GST extra) against last week’s assessment of INR 6,600/MT. Current prices are hovering at 3-month high.
Sponge iron market seems to remain strong, as per manufacturers in central & eastern India. Rising raw material prices & active demand are likely to keep Indian sponge iron prices supported, they added.
US tariff cuts on steel imports from Turkey has started strengthening the trade sentiment in CIS nations, effects can be witnessed with recent billet export indications from CIS nations, which was reported to be USD 420-423/MT, FoB Black Sea. This is higher against last week offers of USD 410-415/MT, FoB Black Sea.