Domestic ferrous scrap prices in most Southeast and East Asian markets were unchanged from a week ago due to limited demand for finished steel. Market participants believe prices could fall in the coming days with the bullishness in the Turkey market easing.
Tokyo steel has announced a third purchase price raise for domestic scrap in the month effective Tuesday. The steelmaker had kept prices unchanged for 10 days amid limited activities during Obon holidays from Aug 8.
Bids were increased by JPY1,000/mt ($9/mt) for ferrous scrap delivered to all five of its works. Purchase prices for #2 HMS will be at JPY24,500/mt ($231/mt) delivered Utsunomiya works in the Kanto region, up by JPY1,000/mt from the prior price revision on Aug 8.
Bids for busheling for deliveries to Tahara and Utsunomiya plants are at JPY27,000/mt and JPY26,500/mt del plant, respectively.
Bids for #2 HMS and busheling are at JPY25,000/mt and JPY26,500/mt delivered Kyushu and JPY24,000/mt and JPY25,000/mt delivered Okayama mill, respectively.
Japanese domestic scrap prices have surpassed early July levels reaching a 45-day high. In the Kanto region, #2 HMS was offered at JPY24,500-25,000/mt fas port while HS and shindachi prices were at JPY27,500-28,000/mt fas and JPY27,000-27,500/mt fas Japan, respectively.
In export markets, #2 HMS traded at $280/mt cfr Vietnam, and HS and shindachi scrap in small bulk cargo traded at $305/mt cfr Vietnam late last week.
Mills kept their bids for domestic ferrous scrap unchanged from a week ago. Many buyers preferred to imported scrap, mainly competitively priced A3 scrap from Russia. Volumes varied based on quotations.
The Davis Index for domestic Heavy A delivered Incheon and Pohang settled up by KRW17,500 at KRW302,500/mt ($240.8/mt) and KRW297,500, respectively, with deals close to the index price.
The weekly Davis Index for domestic Light A rose by KRW17,500/mt to KRW267,500/mt delivered Pohang mill. Limited trades for the grade were reported at KRW265,000-270,000/mt.
Offers for Japanese #2 HMS were at JPY26,500/mt fob Tokyo bay, up by JPY1,000/mt from the prior week.
Rebar and billet prices were flat this week which kept domestic ferrous scrap prices unchanged.
The Davis Index for domestic HMS 1&2 (80:20) in South and North Taiwan, Tuesday, settled flat at TWD7,100/mt($241/mt) and TWD7,300/mt delivered mill, respectively. Prices were flat for the second week as yards kept offers unchanged.
Feng Hsin Steel’s bids for domestic HMS 1&2 (80:20) remained flat at TWD7,100-7,200/mt delivered Taichung plant. The steelmaker’s base offers for rebar and billets too were unchanged at TWD14,200/mt and TWD12,700/mt ex-works, respectively.
Many mills canceled discounts on rebar base offers to pass on partial input costs to end buyers.
In seaborne markets, US-origin containerized HMS 1&2 (80:20) deals were heard at $260-265/mt cfr Taiwan and the index for containerized US-origin HMS 1&2 (80:20) rose by $3/mt to $261/mt cfr Taiwan from the day prior.
After the Obon festival, importers are expecting imported ferrous scrap prices to be weighed down by low finished steel demand in most Asian countries coupled with a drop in Turkey’s buying prices by $1.25/mt on Monday. Shredded offers for Taiwan were heard at $271/mt cfr, also unchanged.
Japanese small bulk cargoes of HMS 1&2 (50:50) were offered at $281-283/mt cfr Taiwan, up by $10/mt from a week ago, with no trades heard. Offers for shredded in small bulk cargoes were at $310-315/mt cfr Taiwan.
The weekly Davis Index for HMS 1&2 (80:20) declined by VND3,50,000/mt($15/mt) to VND6,650,000/mt($286/mt) delivered South Vietnam, inclusive of taxes. An increase in COVID-19 cases in the country has hit the economy and thereby the demand for finished steel for the last two months at the minimum.
After booking bulk cargoes from the US, importers focussed on small bulk trades with deals heard for Japanese #2 HMS at $280/mt cfr Vietnam and busheling and HS at $305/mt cfr Vietnam. Buyers await clarity on price direction from the Kanto tender scheduled to be announced on Wednesday.
Vietnamese billet suppliers kept their offers firm for October and November shipments on high imported scrap prices. Offers are at $440-445/mt cfr China against the bids of $435/mt cfr China.
In China, Shagang Steel purchased domestic #2 HMS (6-10mm thickness) at CNY2,750-2,760/mt($397/mt) del Jiangsu mill, inclusive of 13pc VAT. Offers for the grade, however, are higher by CNY30/mt from these levels. The weekly Davis Index for the grade settled at CNY2,755/mt delivered mill, up by CNY15/mt.
The steelmaker kept its rebar prices unchanged from a week ago for mid -August shipments. Prices for billets in the domestic market were at CNY3,450/mt ex-Tangshan mill on Tuesday.
The weekly Davis Index for domestic HMS 1&2 (80:20) inched up by THB600/mt to settle at THB9,400/mt (302$/mt) delivered Rayong mill, inclusive of taxes, with trades at the index price. Mills preferred domestic material over imports amid bullish offers from most supplier countries.
In the seaborne markets, US-origin containerized HMS 1&2 (80:20) scrap traded at $245-250/mt cfr Laem Chabang this week.
The weekly indexes for HMS 1&2 (80:20) were at MYR1040/mt (249$/mt), up by MYR5/mt delivered western mills and unchanged at MYR1095/mt delivered eastern mills, inclusive of taxes. Trades were limited and ranged between MYR1,090- 1,100/mt del mill. Market participants are expecting demand for finished steel to pick up in September and October, once government infrastructure projects gain momentum.
($1= JPY105; TWD29.4; CNY6.9; THB31; MYR4.2 ; VND23,247; KRW1,184)