Domestic ferrous scrap prices in most Asian markets rose due to tightened supply.
Tokyo steel kept domestic scrap bids unchanged from the prior Tuesday for deliveries to all five of its works.
Bids for busheling were at JPY27,000/mt($255/mt) del Tahara plant and JPY26,500/mt del Utsunomiya plant. 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.
In the Kanto region, #2 HMS was offered at JPY26,500-27,000/mt fas port while offers for HS and shindachi were at JPY28,500-29,500/mt fas Japan, up by JPY500-1,000/mt
Mills raised their bids for domestic from the prior week. Buyers also opted for Russian A3 scrap due to a shortage of domestic scrap and an increase in Japanese and US scrap offers.
The Davis Index for domestic Heavy A delivered Incheon and Pohang rose by KRW23,333/mt and KRW22,500/mt ($19/mt) to settle at KRW335,833/mt($283.4/mt) and KRW330,000, respectively, with deals heard at the index price. The weekly Davis Index for domestic Light A rose by KRW22,500/mt to KRW300,000/mt delivered Pohang mill. Limited trades for the grade were reported at the index price.
Offers for Japanese #2 HMS were at JPY28,000-28,500/mt fob Tokyo bay, up by JPY1,000-1500/mt from the prior week.
Rebar and billet prices remained unchanged this week driving Feng Hsin Steel to keep its domestic scrap bids unchanged. Following Feng Hsin’s footsteps, other mills too kept their bids unchanged.
The Davis Index for domestic HMS 1&2 (80:20) in South and North Taiwan, Tuesday, rose by NT$ 800/mt to NT$8,200/mt($279/mt) and NT$8,400/mt delivered mill, respectively, mainly due to firm offers. Feng Hsin’s base offers for rebar and billets were flat at NT$14,500/mt and NT$13,000/mt ex-works, respectively.
In seaborne markets, US-origin containerized HMS 1&2 (80:20) offers were unchanged at $270-275/mt cfr Taiwan and the daily index for containerized US-origin HMS 1&2 (80:20) too settled flat at $270/mt cfr Taiwan with no trades heard.
Bids for South American scrap were at $255-260/mt cfr. Market participants believe mills could raise their bids in the coming weeks after finished steel demand and prices pick up.
No bids for Japanese bulk were heard in Taiwan after the Kanto tender supported exporters to raise offers. The current price levels remain unviable for Taiwanese mills.
The weekly Davis Index for HMS 1&2 (80:20) rose by VND12,5000/mt ($5.4/mt) to VND6,833,333/mt ($294/mt) delivered South Vietnam, inclusive of taxes. Offers rose to VND7,000,000/mt, while few trades were also heard at VND6,800,000/mt.
Domestic demand in Vietnam is yet to improve as the country continues to reel under the pandemic. A shortage of domestic scrap and a rise in offer prices for imported scrap has made buyers adopt a wait-and-watch approach. Few traders are expecting finished steel prices to rise in the coming days.
An import deal for HRC from India was heard at $525/mt cfr Vietnam.
Limited bulk deals have concluded since the prior Tuesday. An increase in Japanese scrap export prices after the Kanto bids have driven Vietnamese buyers to explore the US market for lower-priced bulk. Offers for US-origin HMS 1&2 (80:20) were at $310-315/mt on Tuesday.
Vietnamese billet suppliers focused on exports as domestic demand for finished steel is yet to recover to pre-pandemic levels. They kept their offers firm for October and November shipments amid bullish imported scrap prices. Offers for billets are at $440-445/mt cfr China against bids of $435/mt cfr China.
In China, Shagang Steel’s bids for domestic #2 HMS (6-10mm thickness) were at CNY2,750-2,850/mt del Jiangsu mill, inclusive of 13pc VAT. The weekly Davis Index for the grade settled at CNY2,800/mt($410/mt) delivered mill, up by CNY65/mt.
The steelmaker raised rebar prices by CNY50/mt this week to cover bullish raw material prices. Prices for billets in the domestic market were at CNY3,460/mt ex-Tangshan mill on Tuesday.
The weekly Davis Index for domestic HMS 1&2 (80:20) inched up by THB200/mt ($6.4/mt) to settle at THB9,800/mt ($315/mt) delivered Rayong mill inclusive of taxes, with trades at the index price. Most mills preferred domestic material over imports amid firm offers from suppliers.
In seaborne markets, no trades were heard for US-origin containerized HMS 1&2 (80:20), while offers were at $265-270/mt cfr Thailand. In the bulk market, a deal for 30,000mt of shredded from the US West Coast was heard at $316/mt.
The weekly indexes for HMS 1&2 (80:20) remained flat this week at MYR1,040/mt ($251/mt) delivered western mills and MYR1,095/mt delivered eastern mills inclusive of taxes. Limited trades were heard at the index price. Market participants are expecting demand for finished steel to pick up in September and October when the government-funded infrastructure projects are expected to gain momentum.
($1= JPY105; NT$29.4; CNY6.8; THB31; MYR4.1; VND23,181; KRW1,184)