OfBusiness SS Scrap Dailies | 7th July 2023

Price

• The price of Steel Scrap (Bundled) import remains stable and is reported at $421-425/ton CFR India basis.
• The Scrap rate of SS 304 remains unchanged at Rs. 125/kg, while the rate for 201 J5/J8 mixed Scrap is Rs. 70/kg (also unchanged).
• Jindal offers Scrap at the following prices:-
  • 304: Rs. 1,35,167/ton 321: Rs. 1,46,430/ton 301: Rs. 1,16,598/ton 316L: Rs. 2,35,480/ton J5 Patta: Rs. 77,700/ton J8 Patta: Rs. 75,700/ton

Demand and Supply

• There is a shortage of 316L Scrap and bundled 304 Scraps, but the supplies of 400 series Scrap are abundant.
• There are some shortages in the 200 series Scrap, possibly due to dealers storing the Scrap in anticipation of a price rise caused by the potential implementation of CVD on the Chinese-origin 200 series. Additionally, there is a shortage of 200 series Scrap.

News

• According to statistical analysis, in 2019, the ratio of Scrap usage for stainless steel production in the world was 48%. Among them, Stainless Steel Scrap accounted for 37%, and carbon Steel Scrap accounted for 11%. At the same time, up to 95% of Stainless Steel was recycled after being Scrapped. Among them, 70% was used to produce Stainless Steel, and 25% was used to produce carbon Steel or Special Steel.
• According to a statement from the former Vice President of South Korean Hyundai Steel, in order to respond to global carbon reduction efforts, South Korean blast furnace Steel mills have modified the Steel-making process and increased the usage of Scrap. However, the Scrap self-sufficiency rate in South Korea is only 80%, and the availability of premium Scrap is scarce. As a result, the Scrap supply in South Korea is tight. Apart from South Korea, Taiwanese and Japanese blast furnace Steel mills are also aiming to incorporate more Scrap into their Steel-making process. Therefore, a tight global Scrap supply is expected in the future.
• Turkey imported around 1.73 million tons of Scrap in May, which is a decrease of 22.4% compared to the same month the previous year. Imports from the US accounted for the largest proportion, totaling approximately 486,000 tons, a decrease of 1.5% year on year. In the first five months of this year, Turkey’s Scrap imports amounted to approximately 8.4 million tons, a year-on-year drop of 23%. The US was the main import source with 1.74 million tons, followed by the Netherlands and Belgium.
• US Stainless Steel Scrap prices remained unchanged for the first week of July 2023, at 0.21 USD/LB for 201, 0.34 USD/LB for 301, 0.38 USD/LB for 304 Prepared Scrap, 0.07 USD/LB for 400 series, and 0.55 USD/LB for 316L Scrap. The price for 309 Scraps is 0.75 USD/LB, while 310 is priced at 0.95 USD/LB. 304 Unprepared Scrap is priced at 0.36 USD/LB.

OFB’s Opinion

• It is expected that there will be a slight shortage of Stainless Steel 304 (bundled) and 316L Scrap for the time being.
• Dealers may find it profitable to stock up on A-grade 316L Scrap if purchase rates are approx Rs. 230/kg.
• Regarding SS 304 and 202 Scrap, bundled Scrap is currently generating slight profits compared to cut utensils Scrap.