Taiwanese mills reduced bids amid sluggish finished steel demand and weak global cues. The Davis Index for containerized US-origin HMS 1&2 (80:20), Friday, fell by $10/mt to $419/mt cfr Taiwan with bids dropping to $410/mt cfr. US-based exporters lowered offers to $425/mt cfr but buyers expected a further drop. The index fell by $17/mt from the prior week (March 5).
Mills are tracking Chinese and Korean bids for Japanese scrap to gauge price direction. Hyundai steel lowered bids by JPY1,000/mt to JPY42,000/mt fob on Thursday. Mills are also picking cues from the Turkish market. The Davis Index HMS 1&2 (80:20) cfr Turkey fell by $17/mt to $447/mt cfr on Thursday from the prior week (March 5).
Tokyo steel reduced scrap prices twice this week. On Friday, the steelmaker reduced ferrous scrap purchase prices by JPY500/mt ($4.6/mt) delivered all plants, effective March 13, except for Kyushu works which was kept flat. Bids were at JPY42,000/mt ($384/mt) delivered Tahara, JPY41,000/mt delivered Okayama, JPY41,000/mt delivered Kyushu, JPY41,500/mt delivered Utsunomiya and JPY40,000/mt delivered Takamatsu.
Market participants expect prices to fall as South Korean, Vietnamese and Taiwanese mills have halted purchases in anticipation of a further drop in global scrap prices this week.