Taiwan
Imported scrap prices rose this week on the back of bullish offers in most global markets. Demand in Turkey and Pakistan has largely supported these prices. But trades in other South Asian markets were limited.
The daily Davis Index for containerized US-origin HMS 1&2 (80:20) rose by $7/mt to $239/mt cfr Taiwan on Thursday and $12/mt from the prior week.
Few deals were heard at $240/mt cfr for US-origin HMS 1&2 (80:20) this week. Demand for finished steel continued to be under pressure, a usual phenomenon in the ongoing summer months.
It usually takes two months for the booked material to arrive and a few buyers were willing to negotiate in anticipation of strengthened markets in the coming months.
Traders believe prices could rise further next week after which they could trend flat on the graph.
Trades for scrap with shorter delivery time, however, were subdued as most mills exercised caution during the ongoing Typhoon. These shipments are usually booked from Australia and Hong Kong.
The weekly Davis index for containerised shredded settled at $250/mt cfr Taiwan, up by $9/mt from last Thursday. Offers for US-origin shredded were at $250-255/mt cfr. The index for #1 HMS settled at $243/mt cfr Taiwan, up by $8/mt, and index for P&S5ft increased by $7/mt to $251/mt from the prior week. No major trades were heard for containerised scrap.
In small bulk markets, bids for Japanese HMS 1&2 (50:50) were at $250/mt cfr, up by $10/mt from the week prior. But Japanese exporters are expecting ferrous scrap prices to rise further next week and refrained from accepting the present bids.
Indonesia
The demand for finished steel in Indonesia is still weak. Ferrous scrap prices, however, rose on global cues. A slowdown in the construction sector and new infrastructure projects are the major causes of the subdued steel demand.
Few trades in containers for #1 busheling 5ft from the US were heard at $280/mt cfr Jakarta with the index for the scrap grade falling by $2/mt to $280/mt cfr. Except busheling, all grades of ferrous scrap rose this week fueled by higher offers.
The country’s government has introduced a new regulation mandating supplier yards to register their firms with the Indonesian embassy to continue exporting to Indonesia. This has dwindled the offers in the market. A weak demand, however, kept prices from rising significantly.
Deals for P&S 5ft were heard at $270-273/mt cfr with its index settling at $272/mt, up by $3/mt from the week prior.
The weekly index for US-origin HMS 1&2 (80:20) and shredded scrap settled up by $8/mt and $13/mt to $244/mt and $264/mt cfr Jakarta, respectively, with no trades heard. US suppliers increased offers looking at firm Turkish bulk prices in the week. The index for US-origin HMS 1&2 (80:20) settled at $258.5/mt cfr Turkey on Wednesday, up by $6/mt from July 10. Traders are expecting prices to rise further next week with Japanese export prices gradually picking up.
Vietnam
In bulk markets, Japanese-origin HMS 1&2(50:50) was offered at $250/mt cfr Vietnam earlier this week. No trades were heard either in bulk or containerised markets with finished steel demand under pressure in Vietnam.
In containers markets, the weekly index for shredded rose by $9/mt to $255/mt cfr Haiphong. US exporters were unwilling to match bids by Vietnamese mills.
The weekly index for HMS1&2 (80:20) rose by $5/mt to $230/mt. Offers were at $230-235/mt cfr while bids at $225/mt cfr on Thursday. The weekly index for #1 HMS was unchanged at $238/mt cfr, while the index for P&S 5ft rose by $2/mt to $260/mt cfr with few deals heard at the index price.
In small bulk markets, Japanese HMS 1&2 (50:50) was offered at $255-260/mt cfr South Vietnam and Hong Kong-origin material at $250/mt cfr North Vietnam. Offers for HS grade in bulk were at $270-275/mt cfr Vietnam, up by $10/mt from the prior week.
A major steelmaker in the country, Formosa steel is expected to announce offers for September HRC shipments $20/mt higher than the present market amid a stable outlook