Asian imported ferrous scrap prices continued their downtrend as steel mills fear a drop in bookings amid global uncertainty with the Coronavirus related lockdown in China.
Finished steel demand weakened and buyers booked raw material only to meet immediate requirements.
South Korean containerised imported ferrous scrap prices fell by $10/mt from the prior week, amid lower global ferrous scrap prices and seasonal issues.
Hyundai Steel booked 45,000mt #1 HMS bulk cargo 1 at $287.5/mt cfr South Korea, down by $13.5/mt from the last bulk deal reported last week at $301/mt cfr South Korea.
Hyundai Steel booked Japanese #2 HMS at JPY25,500/mt fob Japan down JPY1,000/mt from the prior week. Russian A3 grade scrap traded at $268/mt cfr South Korea, down $24/mt from the previous bulk deal, according to a source. Though, there was no confirmation from Hyundai Steel.
Transport between countries like Vietnam and Taiwan, apart from China, is severely affected by the Coronavirus lockdown which is likely to affect ferrous scrap prices in the coming days.
The Davis Index for containerised HMS 1&2 (80:20) settled at $266/mt cfr South Korea, down $10/mt from the prior week amid marginal decline in West Coast offers from the US.
Busheling scrap from Japan was traded in the range of $290-295/mt cfr South Korea.
The offers for US-origin HMS1&2 (80:20) mixed scrap in bulk cargo fell in the range $285-290/mt cfr South Korea, down $5/mt from the prior week.
Tokyo Steel lowered its ferrous scrap purchase prices by JPY500/mt ($5/mt) for all plants effective Jan 29. This was the second price cut in five days. The company lowered ferrous scrap prices by JPY500/mt on Jan 25.
After the latest price revision, Tokyo steel will pay JPY24,000/mt for Japanese H2 scrap delivered to its Tahara plant in the central region and the Utsunomiya plant in the Kanto region.
The purchase prices for #2 HMS delivered to the Okayama plant and Takamatsu steel centre were at JPY22,500/mt and JPY21,500/mt, respectively. Busheling scrap prices delivered Okayama plant were lower by JPY1,500/mt from the prior week.
The weekly Davis Index for #2 HMS scrap lowered to JPY25,500/mt ($230/mt) fob Japan on Wednesday, down from JPY25,912/mt fob Japan the prior week.
Bids by steel mills were at $25,000/mt fob Japan in anticipation of a further decline in the coming days. Japanese suppliers made offers to South Korean mills at JPY1,000/mt lower than a week earlier.
The Davis index for Busheling settled at JPY28,000/mt fob Japan on Wednesday, down JPY650/mt from the prior week.
Traders paid JPY23,500-24,000/mt fas Tokyo bay levels for Japanese #2 HMS scrap. The Davis index for #2 HMS lowered to JPY23,500/mt fas and the index for Busheling to JPY26,500/mt fas Japan.Taiwan and Vietnam markets are closed for the Chinese New Year holidays.