Ferrous scrap prices in Asia increased this week on rising demand from South Korea, Indonesia and Vietnam mills. Trades picked up after two weeks of tepid activity. Scrap supply though remains tight. There are indications of Japanese export prices moving up. Bulk import prices in Turkish markets, however, are likely to drop.
Japan and South Korea
Japanese ferrous scrap export prices increased after golden week holidays. Kanto Tetsugen ferrous scrap export tender concluded with average bids higher prices by JPY1,840/mt than the prior month.
South Korean steel mills continued purchasing even though prices increased to JPY23,000/mt fob Japan.
A major mill booked 25,000mt Australian bulk ferrous scrap cargo comprising of #1 HMS at $255/mt fob Japan. While another steelmaker booked Russian ferrous scrap cargo at $239/mt cfr South Korea. In the bulk market, Japanese 50,000mt of #2 HMS traded at JPY23,000/mt fob Japan.
Taiwan
Imported ferrous scrap prices in Taiwan remained unchanged from the day prior but dropped from the early week.
The daily Davis Index for containerised US-origin HMS 1&2 (80:20) settled at $227/mt cfr Taiwan on Thursday, unchanged from the prior day. Offers for HMS 1&2 (80:20) were reported at $230-235/mt cfr Taiwan.
The Davis Index for containerised shredded settled at $235/mt cfr Taiwan, up by $5/mt from the prior week. US-origin containerised shredded was offered flat at $235-240/mt cfr Taiwan in TEUs. No major trades for busheling and P&S scrap were reported with their indexes settling unchanged at $240/mt and $250/mt cfr Taiwan, respectively.
In bulk markets, Japan offered #2 HMS at $225-230/mt cfr Taiwan and shredded at $245-250/mt cfr Taiwan, up by $5-10/mt from the prior week.
Vietnam
Vietnamese mills resumed production activities this week. With an increase in average bids for Kanto Tetsugen tender, Japanese suppliers raised offers for Vietnamese buyers.
US suppliers offered HMS 1&2 (80:20) in bulk cargoes at $260-265/mt cfr Vietnam, but no buyers were available in the market.
In small bulk markets, Japanese #2 HMS was offered at $250-255/mt cfr South Vietnam. Bids, however, were at $240-245/mt cfr Vietnam.
Japanese bulk shredded was offered at $255-260/mt cfr South Vietnam.
The Davis Index for containerised P&S settled at $253/mt cfr Vietnam, up by $3/mt from the prior week.
The index for containerised shredded settled at $245/mt, up marginally from $243/mt cfr Vietnam prior week. The Davis Index for containerised HMS 1&2 (80:20) settled at $228/mt cfr Vietnam, down by $2/mt from the prior week. US suppliers offered HMS 1&2 (80:20) at $225-230/mt cfr Vietnam, down by $5/mt from the prior week.
Indonesia
Indonesian mills increased enquiries for imported scrap with fresh orders for fabricated finished steel products. Importers booked a majority of cargoes from Hong Kong and US suppliers. Domestic steel demand picked up in Indonesia.
Rebar bundles were offered at $265-267/mt cfr Jakarta. Trades for Malaysia-origin busheling were reported at $265-266/mt cfr Jakarta. Brazilian Bluesteel concluded trades for the same gradeat $255/mt cfr Jakarta.
The Davis Index for containerised P&S 5ft settled at $255/mt cfr Jakarta, up by $2/mt from the prior week. US-origin P&S in FEUs was offered at $255-260/mt cfr Jakarta. UK suppliers offered P&S at $260/mt cfr Jakarta but the same grade of Hong Kong-origin was offered at $255/mt cfr Jakarta.
The weekly index for busheling scrap settled at $260/mt cfr Jakarta, up by $2/mt. The Davis Index for containerised shredded settled at $250/mt cfr Jakarta, up by $2/mt from the prior week.
The Davis Index for containerised HMS 1&2 (80:20) settled at $230/mt cfr Jakarta, up by $5/mt from the prior week. Offers of US-origin HMS 1&2 (80:20) were at $230-235/mt cfr Jakarta. Bids were at $225/mt cfr Jakarta.
($1=107.2)