Posted on 27 Apr 2023
Kazakhstan’s industry and infrastructure development ministry has extended the ban of ferrous scrap exports for another six months from 3 May, Kallanish learns.
The ban continues to be applicable to all types of ferrous scrap, but does not include alloyed or corrosion-resistant scrap, shipped by all modes of transport. Although the purpose of the measure, first introduced six years ago, is to support Kazakh steelmaking enterprises, the lion's share of Kazakh scrap is exported to Russia. Both Russia and Kazakhstan are members of the Eurasian Customs Union, and the ban does not apply to union members.
Meanwhile, according to the ministry, there will be tighter restrictions on exports of non-ferrous scrap, with copper, aluminium, lead scrap, and lead acid batteries to be prohibited.
Kazakh scrap shipments to Russia amounted to 276,000 tonnes in the first half of 2022, down by around 7% on-year, with around 250,000t shipped by rail, up 2% on-year (see Kallanish passim).
At the same time, Kazakhstan's crude steel output fell by 15.3% on-year to 923,324t in January-March of this year. In March alone, output amounted to 337,374t, down by 11.7% on-year. However, it increased in February, when output reached 264,429t.
Meanwhile, bulk offers from India were heard at $750-770/t cfr Italy, depending on the buyer and quantity. There was a rumour that an Indian steel major had reportedly offered bulk HRC at $730/t cfr Italy; however, the deal was not concluded.
Current offers for DC-01 cold-rolled coil plummeted to $865-870/t cfr Antwerp. A few small tonnage deals were concluded at $870/t cfr Antwerp this week.
"The falling Chinese market has plummeted market sentiment globally," a source opines. "Chinese traders taking short-selling positions are driving the overall market, and hence things have turned bearish. This has further slowed the market in Europe, which was itself suffering from sluggish demand for quite a long time."
Indian re-rollable HRC offers in the GCC for May shipment are at $700-720/t cfr GCC for May shipment, netting back to around $680-700/t fob India. The Indian offers continue to remain the costlier option in the region; hence, no deals were concluded.
Source:Kallanish
