Imported ferrous scrap prices in Southeast Asian markets continued to rise as mills started ramping up production. Steelmakers booked bulk cargoes this week to refill their dipping inventories.
Additionally, as Turkish mills continued booking bulk cargoes from the US at higher prices, offers for buyers from Taiwan, Vietnam and South Korea also increased.
Prices could, however, come under pressure if the Chinese steel demand slows further and the Asian billet market turns bearish.
Japanese ferrous scrap export prices lost its steam and started softening on Thursday. Japanese #2 HMS in small bulk was offered at $275-280/mt cfr Vietnam and $265-270/mt cfr Taiwan, down by $5-10/mt from the prior week.
Imported ferrous scrap prices in Taiwan rose form the prior week. Thin trades were heard.
The Davis Index for containerised US-origin HMS 1&2 (80:20) settled at $255/mt cfr Taiwan on Thursday, up by $4/mt from Wednesday and by $11/mt from the week prior. Australian-origin HMS 1&2 (80:20) was offered at $255/mt cfr Taiwan but bids were at $245/mt cfr as mills looked to lower input cost.
A few US suppliers offered HMS 1&2 (80:20) in FEU’s at $255-258/mt cfr Taiwan.
Demand for finished steel is weak, a seasonal occurrence during the ongoing monsoons, shares a Davis Index source. Thus, buyers are likely to consider purchases from other countries to reduce input cost. South American-origin HMS 1&2 (80:20) was offered at $240-245/mt cfr Taichung.
The Davis Index for containerised #1 HMS settled at $259/mt cfr Taiwan, up by $9/mt from last Thursday. Deals were heard at $260/mt cfr Taiwan.
The index for shredded and P&S settled at $259/mt and $265/mt cfr, respectively, both up by $2/mt from the week prior. No major trades were heard for both the grades as importers are expecting prices to soften next week.
In small bulk markets, Japanese HMS 1&2 (50:50) was sold at $265-270/mt cfr Taiwan, down by $5-10/mt from the prior week. Offers for HS, busheling and shredded were at $280-285/mt cfr Taiwan, down by $5-10/mt. But buyers are keen on reducing bids further. Japanese shredded in bulk traded at $283/mt cfr Taiwan.
Vietnamese mills booked limited quantities of scrap as a rise in offers from Japanese and the US suppliers squeezed their margins.
In the containers market, few bookings of HMS 1&2 (80:20) and #1HMS were heard at $255/mt and $260/mt cfr Vietnam with its index settling at $255/mt cfr and $260/mt cfr, respectively, both up by $5/mt from the prior week. Offers from US suppliers remained firm amid tight supply and continued bulk bookings by Turkish mills.
The Davis Index for containerised busheling and P&S settled at $282/mt and $274/mt cfr Vietnam, up by $6/mt and $7/mt, respectively, from the prior week. Limited trades were heard for busheling and P&S at $283/mt and $273/mt cfr Haiphong, respectively.
Trades remained slow for shredded which was offered at $270/mt cfr. The index for shredded settled at $268/mt cfr, up by $5mt from a week ago.
In small bulk markets, Japanese HMS 1&2 (50:50) traded at $275-280/mt cfr South Vietnam and Hong Kong-origin #1 HMS at $280/mt cfr North Vietnam. Offers for busheling in bulk were at $305/mt cfr Vietnam with bids at $295/mt cfr Vietnam. A mill in Southern Vietnam booked Japanese HS scrap at $292/mt cfr Vietnam. Vietnamese HRC export and domestic offers rose recently by $5-10/mt to $460-470/mt ex-plant.
Indonesian mills booked a limited volume of ferrous scrap as finished steel demand remains low. The index for HMS 1&2 (80:20) settled at $254/mt, up by $4/mt from the prior week. Offers for HMS 1&2 (80:20) were at $255-$260/mt cfr Indonesia but deals were heard at $250-$255/mt cfr.
The weekly index for busheling and P&S 5ft scrap settled at $284/mt and $278/mt cfr Jakarta, respectively, both up by $3/mt. Deals for P&S 5ft were heard at $270-280/mt cfr Jakarta and those for busheling at $280-285/mt cfr. European #1 busheling in TEUs traded at $295/mt cfr Jakarta. Brazilian P&S in TEUs traded at $275/mt cfr Jakarta.
Australian-origin HMS 1&2 (80:20) was offered at $275/mt cfr Taiwan but bids were at $265/mt cfr.
Few trades of US-origin shredded in TEUs concluded at $265-268/mt cfr Jakarta with the weekly Davis Index for the grade settling flat at $268/mt cfr. Offers were at $270-$275/mt cfr.
In the containers market, HMS 1&2 (80:20) from the middle east and the US was offered at $250-255/mt cfr Malaysia. A leading steel mill in Thailand booked 30,000mt bulk cargo comprising of shredded at $287/mt cfr Thailand for July shipments.
($1=JPY107.04; VND23,265.53; NTD29.62)