It is reported that as major buyers of sea borne global scrap trade Turkish and Japanese mils have returned back marketing last 10 days, scrap prices have re bounded off late.

Japan's largest electric steelmaker Tokyo Steel Mfg Co has increased what the company pays for locally available ferrous scrap by a uniform JPY 1,000 per tonne (USD 11) for all grades at its Okayama, Kyushu, Takamatsu, and Utsunomiya works, effective with November 6 arrivals.

Uptrend in Japanese domestic scrap prices will lift its exports prices to Korea so this will help strengthen Korean domestic scrap prices in November.

Prices of European scrap have also gone up by USD 10 per tonne, as Turkish mils resumed their buying.

On the back of recent pick up in long product prices, Chinese domestic scrap prices have also seen a boost. The scrap market is continuing on upward path and the main reasons behind it are the increased purchase volumes which are basically driven by downstream demand. It is reported that the spot resource in market is limited and part of traders want to stock scrap waiting for the price rebound.

Smaller buyers from India, despite very sluggish long product market, have also started accepting increased levels of about USD 300 per tonne for US origin shredded scrap this week

The movements in scrap prices have correlation with the steel prices albeit at a slow pace. However with the persistent flux in the global steel market the relation has become more pronounced as steel manufacturers aim to minimize inventory to prune cost thereby accentuating fickleness.

Scrap prices demonstrated the characteristic waxing and waning with of amplified magnitude thereby affecting the bottom line of steel manufacturers in this turbulence. On the flip side the movements bear a correlation with the swinging fortunes in the steel market albeit not in the same proportion.

1. Turkey - Back in the fray

Change is on November 13th as compared to November 6th 2009
In USD per tonne

2. China - Induction effect

Scrap
6-8mm

Change is on November 13th as compared to November 6th 2009

3. India - Unable to withstand domestic depression

Melting scrap
80:20
HMS

Change is on November 13th as compared to November 6th 2009
Change is in INR per tonne

There were hardly any buyers at USD 310 per tonne CFR levels in India as they expect prices to soften further

4. Rotterdam - Rock steady

Change is on November 13th as compared to November 6th 2009
In EUR per tonne

To keep tab on steel prices in Europe, subscribe to services of www.steelprices-europe.com by registering or sending a mail to admin@steelprices-europe.com with full contact details. Please note that this is a paid service with subscription charges of EUR 500 for 12 months.

(Sourced from www.steelprices-europe.com)

On the weekend signals started to appear that steel scarp prices have bottomed out after Japanese steel majors started to increase their buying price by about JPY 1,500 per tonne last week.

The other factors supporting price increase are:

1. A positive sentiment among steel scrap buyers in South Europe

2. Tightening of scrap supply situation in China

3. Buoyancy in scarp prices in SEA (Vietnam and Thailand)

4. Partial resumption of buying by some Turkish mills

On the other hand the sentiments in US market remained week, with expectations of at least USD 20 per tonne reduction in November.

1. Turkey - Resumption of buying on the anvil

Change is on November 6th as compared to October 30th 2009

In USD per tonne

2. China - Declines slows

Scrap
6-8mm

Change is on November 6th as compared to October 30th 2009

3. India - Reels under long back kick

Melting scrap
80:20
HMS

Change is on November 6th as compared to October 30th 2009
Change is in INR per tonne

There were hardly any buyers at USD 310 per tonne CFR levels in India as they expect prices to soften further

4. Rotterdam - Small gain

Change is on November 6th as compared to October 30th 2009
In EUR per tonne

To keep tab on steel prices in Europe, subscribe to services of www.steelprices-europe.com by registering or sending a mail to admin@steelprices-europe.com with full contact details. Please note that this is a paid service with subscription charges of EUR 500 for 12 months.

(Sourced from www.steelprices-europe.com)

1. Turkey - Buying to restart

Scrap is at a comfortably low level, there should be a bold return of Turkish buying in the scrap market.

Change is on October 30th as compared to October 23rd 2009
In USD per tonne

2. China - To follow steel price pick up

Scrap
6-8mm

Change is on October 30th as compared to October 23rd 2009

3. India - Under pressure

Melting scrap
80:20
HMS

Change is on October 30th as compared to October 23rd 2009
Change is in INR per tonne

There were hardly any buyers at USD 310 per tonne CFR levels in India as they expect prices to soften further

4. Rotterdam - No change

Change is on October 30th as compared to October 23rd 2009
In EUR per tonne

To keep tab on steel prices in Europe, subscribe to services of www.steelprices-europe.com by registering or sending a mail to admin@steelprices-europe.com with full contact details. Please note that this is a paid service with subscription charges of EUR 500 for 12 months.

(Sourced from www.steelprices-europe.com)

The main cause of the prices drop is the absence of serious purchases in Turkey and China, the countries which were the biggest scrap importers in the first three quarters of 2009. By now China almost stopped scrap importing due to domestic steel products prices decrease. Turkish companies which had to reduce steel melting volumes, buy small amounts of scrap. American and European companies have stopped making scrap stockpiles. They are to return to the market in January.

1.Turkey

Change is on October 23rd as compared to October 16th 2009
In USD per tonne

The fall in scrap market happened by the same reasons as steel products prices decrees. The main reason is steel overproduction caused by too optimistic expectations of the crisis finish by the end of current year and according steel prices increase. Metallurgical companies started buying raw materials in July to August, preparing for market recovery. This caused scrap shortage and scrap prices increase to about USD 320 per tonne CFR in Turkey and to mere than USD 350 per ton CFR Eastern Asia. Now steel makers use these excessive scrap stockpiles and they have all opportunities for operating for a fall.

The depth of the market fall will depend, first of all, on the situation in the Middle East finished products market. In 2009 the difference between the prices for HMS No 1&2/ CFR Turkey and rebar FOB Turkey was USD 180 per tonne to USD 230 per tonne. By all appearances Turkish long products manufacturers now try to keep rebar from the decrease to less than USD 450 per tonne FOB level. In this connection there are no reasons for scrap prices fall to less than USD 230 per tonne to USD 250 per tonne CFR Turkey. At that, it should be taken into account that Turkish metallurgists did not make large transactions with scrap in early September. That is why their scrap stockpiles are rather small. It is possible to rely on the fact that Turkish companies will resume scrap purchases in November and will help the prices to stabilize thereby.

2. China

Scrap
6-8mm

Change is on October 23rd as compared to October 16th 2009

3. India - Buckles under slow long demand

Melting scrap
80:20
HMS

Change is in INR per tonne

4. Rotterdam

Change is on October 23rd as compared to October 16th 2009
In EUR per tonne

To keep tab on steel prices in Europe, subscribe to services of www.steelprices-europe.com by registering or sending a mail to admin@steelprices-europe.com with full contact details. Please note that this is a paid service with subscription charges of EUR 500 for 12 months.

(Sourced from www.steelprices-europe.com)