Taiwan
Scrap import prices rose this week on the back of bullish offers by supplier countries. These offers were supported by demand in Turkey and Pakistan. Trades in the Indian market have also started rising.
The Davis Index for containerized US-origin HMS 1&2 (80:20) rose by $1/mt from the prior day to $242/mt cfr Taiwan, which was also up by $4/mt from the prior week.
Demand for finished steel continued to be under pressure, a usual phenomenon during the ongoing summer months. Turkish prices rose again with the Davis Index for US-origin HMS 1&2 (80:20) rising by $7/mt on Wednesday from Last Thursday. Market participants are expecting a further rise in offer prices amid increased buying in Taiwan.
Taiwanese mills booked South American HMS 1&2 (80:20) in limited quantities this week at $230-237/mt cfr. Only a few sellers from the region doled out offers in the Taiwan market this week.
The weekly Davis index for containerized #1busheling and P&S 5ft settled at $266/mt cfr and $261/mt cfr Taiwan, up by $13/mt and $10/mt, respectively. Offers for US-origin busheling were at $265-270/mt cfr with bids ranging in $260-265/mt cfr.
The index for shredded settled at $256/mt cfr Taiwan, up by $6/mt, and index for #1 HMS increased by $7/mt to $250/mt from the prior week. No major trades were heard for containerized scrap.
Australian-origin containerized HMS 1&2 (80:20) traded at $240-245/mt cfr Taiwan on Tuesday, up from $235-238/mt cfr Taiwan last week. Japanese small bulk cargoes of HMS 1&2 (50:50) were offered at $255/mt cfr Taiwan, while shredded traded at $270-275/mt cfr Taiwan.
Feng Hsin Steel kept domestic base HMS 1&2 (80:20) prices at TWD6,800/mt delivered Taichung mill. The steelmaker’s base offers for rebar and billet were unchanged at TWD13,800/mt and TWD12,300/mt ex-works, respectively. Some mills offered discounts on listed prices to boost demand.
Indonesia
Most mills have ramped up production with expectations of finished steel trades to improve in August when some major infrastructure projects are scheduled to commence. Amid a shortage of domestic ferrous scrap, many mills came under pressure to buy bullish imported scrap to keep up their production.
The index for HMS 1&2(80:20) rose by $8/mt to $252/mt cfr Jakarta.
Few trades for containerized #1 busheling and P&S 5ft from the US were heard at $293-295/mt cfr $280/mt cfr, respectively. The index for #1 busheling rose by $15/mt to $295/mt cfr and for P&S by $7/mt to $279/mt cfr Jakarta. Offers for #1 busheling were in the range of $290-300/mt cfr Jakarta
The index for shredded rose by $12/mt to $276/mt cfr with no trades heard.
The country’s government has introduced a new regulation mandating overseas supplier yards to register their firms with the Indonesian embassy to continue exporting to Indonesia. Offers had therefore dwindled last week. This week, however, international suppliers have slowly started returning to the Indonesian market. Sellers expect buying activity to increase in the country in the coming weeks. Domestic P&S scrap offers were at $300/mt.
Vietnam
In the containers market, the weekly index for shredded rose by $16/mt to $271/mt cfr Haiphong. US exporters were unwilling to match bids by Vietnamese mills which were in the range of $260-265/mt cfr.
No trades for shredded were heard in either the bulk or containerized markets as finished steel demand remains under pressure in Vietnam.
The weekly index for HMS1&2 (80:20) rose by $12/mt to $242/mt cfr. Deals were heard at the index price. The weekly index for #1 Busheling was up by $15/mt to $281/mt cfr, while the index for P&S 5ft rose by $13/mt to $273/mt cfr with no trades heard.
Japanese-origin HMS 1&2(50:50) was offered at $260-265/mt cfr Vietnam on Thursday.
A major steelmaker in the country, Formosa steel announced offers for September HRC shipments at prices $20/mt higher than prior month’s levels hoping for strengthened demand. Chinese buyers also opted for trades with Vietnamese suppliers amid trade tensions with India.
($1= TWD29.4)