Imported ferrous scrap prices in Asia reversed a downward trend this week, following a rise in the global market. Though a few steel mills still continued to bid low. The price rise was driven by supply crunch despite weak demand from major regions as most countries remain under a partial or total COVID-19 lockdown.
Japan
Japanese ferrous scrap export prices increased by JPY1,000-1500/mt from the prior week amid tightening supply.
In the Kanto region, #2 HMS traded at JPY19,500-20,000/mt fas Tokyo bay, while HS and Busheling traded at JPY23,000-23,500/mt and JPY23,500-24,000/mt fob Japan.
Taiwan
Imported ferrous scrap prices in Taiwan increased following a rise in Turkish bulk scrap prices. In container markets, the weekly Davis Index for containerised US-origin HMS 1&2 (80:20) settled at $211/mt cfr Taiwan on Thursday, up by $9/mt.
Trades for containerised HMS 1&2 (80:20) concluded at $210/mt cfr Taiwan early in the week but offers from suppliers in the $215/mt cfr Taiwan range.
The Davis Index for containerised shredded settled at $225/mt cfr Taiwan, up by $9/mt from the prior week.
US-origin containerised shredded was offered at $225-230/mt cfr Taiwan, with bids from steel mills not above $220/mt cfr.
In bulk markets, Japanese HMS 1&2 (50:50) in small bulk cargoes traded at $220-225/mt cfr Taiwan, up by $10/mt from the prior week. Japanese HMS 1& 2 (50:50) prices are likely to remain on an upward trend as suppliers withdrew lower offers from the market, shared a trader. Indian steelmakers offered billets at $380-385/mt cfr Taiwan, up by $10/mt from the prior week.
Vietnam
In bulk markets, Vietnamese steel mills continued booking Japanese #2 HMS scrap despite prices moving up by $10-15/mt.
Offers for #2 HMS in small bulk cargoes were in the range of $230-235/mt cfr South Vietnam and between $235-240/mt cfr in the northern region.
Japanese HS scrap was offered at $265-270/mt cfr North Vietnam. A Russian supplier offered A3 grade bulk cargo at $235/mt cfr South Vietnam, but the deal remained under negotiation as bids were around $230/mt cfr South Vietnam.
Two deals by major steelmakers for #2 HMS concluded in the southern region, one at $228/mt and the other at $230/mt cfr Vietnam, up by $10-12/mt from the prior week.
Offers for HS scrap were in the range $260-265/mt cfr North Vietnam, while a deal was reported at $253/mt cfr Vietnam.
Hong Kong-origin HMS 1&2 (50:50) in bulk was offered at $230-235/mt cfr North Vietnam.
In the container market, the Davis Index for containerised busheling, P&S 5ft and shredded, settled at $250/mt cfr, $243/mt cfr and $236/mt cfr Vietnam.
The Davis Index for containerised HMS 1&2 (80:20) settled at $219/mt cfr Vietnam, up by $4/mt from the prior week. US suppliers offered HMS 1&2 (80:20) at $223-225/mt cfr Vietnam in 60ft containers. Japanese busheling was offered at $250/mt cfr Vietnam.
Indonesia
Indonesian mills stayed away from buying ahead of the Ramadan month, and the resulting unavailability of labour, as most travel to their hometowns to mark the occasion.
The impact of the COVID-19 outbreak has also lowered the demand from major mills.
Trades for imported scrap were very limited this week. The Davis Index for containerised P&S 5ft settled at $246/mt cfr Jakarta, up by $6/mt from the prior week.
US-origin P&S in 40-foot containers traded at $245-250/mt cfr Jakarta.
Domestic heavy melt scrap was priced at $230/mt del Indonesia mills, up by $5/mt from the prior week.
The weekly index for busheling scrap settled at $251/mt cfr Jakarta, up by $1/mt.
Mills were bidding for material from South Korea at $245/mt cfr, but offers were around $250-255/mt cfr Jakarta.
The Davis Index for containerised shredded settled at $240/mt cfr Jakarta, up by $5/mt from the prior week, though bids from mills were still at $225-230/mt cfr Jakarta levels.
The Davis Index for containerised HMS 1&2 (80:20) settled at $225/mt cfr Jakarta, up by $5/mt from the prior week.
Malaysia
Malaysian steel mills were interested to book US origin containerised shredded at $235/mt cfr Malaysia, though an extension to the country’s lockdown kept trades at a minimum. South American origin HMS 1&2 (90:10) in 40ft containers traded at $220-225/mt cfr Malaysia.
($1=JPY107.4; NT$30.09; VND23,447.38)