Imported ferrous scrap prices continued their downtrend for a fifth successive week on the back of weak finished steel domestic demand in Southeast and East Asian countries.
Taiwan
Taiwanese steel mills booked Japanese origin ferrous scrap in small bulk cargoes after they fell by $15-20/mt this week from Feb 6.
Japanese H1:H2 scrap of volume 12,000-15,000mt in small bulk cargoes traded in the range $225-230/mt cfr Taiwan, down $15-20/mt from the prior week. But few yards held their offers for the same grade at $230-235/mt hoping prices would increase in the near term.
The weekly Davis Index for containerised US-origin HMS 1&2(80:20) settled at $217/mt cfr Taiwan on Thursday, down by $16/mt from the prior week. Containerised HMS 1&2 (80:20) traded at $213-217/mt cfr Taiwan early this week as buyers were unwilling to accept offers at $220-223/mt cfr Taiwan.
Japanese busheling in bulk was offered at $260/mt cfr Taiwan. The Davis Index for containerised Busheling settled at $247/mt cfr Taiwan.
Vietnam
Vietnamese steel mills also preferred competitively price Japanese bulk scrap over other origins. Mills wait for Chinese steel exports to resume which will offer them a clarity on finished steel prices before restocking ferrous scrap.
The weekly index for containerized HMS 1&2 (80:20) fell to $235/mt cfr Vietnam, down by $15/mt. US origin West coast ferrous scrap suppliers offered containerised HMS 1&2 (80:20) at $240/mt cfr Vietnam and in bulk at $280/mt cfr Vietnam, down $10/mt from the prior week. There were no takers at those levels.
Japanese busheling scrap traded at $263/mt cfr north Vietnam with offers at $265/mt cfr Vietnam.
Japanese #2 HMS in bulk cargoes were offered in the range of $245-250/mt cfr Vietnam, down $10/mt from the prior week.
Mills in southern region booked Hong Kong origin HMS 1&2 (50:50) at $240/mt cfr Vietnam. Japanese #2 HMS trades were at $242/mt cfr Vietnam.
The Davis Index for US origin P&S 5ft settled at $260/mt cfr Vietnam.
Indonesia
Indonesian mills stated they are facing delays in processing of license renewal mainly due to country’s import quotas. This has resulted in the cancellation of ferrous scrap contracts for traders. Chinese workers in Indonesia too remained under quarantine affecting production at many induction furnaces.
The Davis Index for containerized P&S 5ft settled at $288/mt cfr Jakarta, down $2/mt from the prior week. No major trades for P&S were reported as demand remained subdued this week.
The weekly index for Busheling settled at $296/mt cfr Jakarta, down $9/mt. Containerised busheling in containers from South Korea traded at $297/mt cfr Jakarta early this week. Bids declined to $295/mt cfr Jakarta later in the week, but sellers held offers at $300/mt, according to a Davis source.
The Davis Index for containerised shredded settled at $277/mt cfr Jakarta, down by $4/mt from the prior week.
The index for HMS 1&2 (80:20) settled at $248/mt cfr Jakarta, down $7/mt from the prior week. US suppliers were reluctant to lower their offers and match mills’ bids which were at $245/mt cfr Jakarta this week.
Market highlights
In Thailand, Central America origin HMS 1&2 (80:20) in containers was offered in the range of $235-240/mt cfr Thailand with no buyers interested. Mills expect steel prices to rise as exports are likely to pick up.
In Malaysia, US origin containerised HMS 1&2 (80:20) traded at $250-255/mt cfr Malaysia this week down $5/mt from the prior week.
In Pakistan, imported ferrous scrap prices rose by $10/mt to $295/mt cfr Qasim from the prior week.
In Bangladesh, trades for containerised HMS 1&2 (80:20) from South America were at $280/mt cfr Chattogram, up $10/mt from a week ago. Containerised shredded was offered at $295-300/mt cfr Chittagong, with limited trades at those prices.
In India, imported ferrous scrap prices rose after the recent rise in global ferrous scrap prices. Containerised shredded traded in the range $285/mt cfr Nhava Sheva and offers rose to $290/mt cfr Nhava Sheva. Containerized HMS 1&2 (80:20) from Dubai traded at $280/mt cfr Nhava Sheva, up $5/mt from Feb 7.
The recent rise in Turkish ferrous scrap prices pushed prices up in India, Pakistan and Bangladesh.In the hopes of further rise in global ferrous scrap prices drive by increase in Turkish bulk scrap import prices, sellers held back their offers. The Davis Index for US-origin bulk HMS 1&2 (80:20) rose by $9/mt from Feb 12 to $272/mt cfr Turkey.