South Korea
Prices of containerized imported ferrous scrap fell amid slow finished steel demand. Also a switch to bulk buying from Japan due to container shortage and vessel delays lowered containerized scrap prices. Construction projects in the country have slowed amid a steep rise in the price of raw materials such as steel and cement. Many mills have lowered bids in line with a decline in scrap and ore prices in other Asian countries. The weekly Davis Index for containerized HMS 1&2 (80:20), Wednesday, settled at $380/mt cfr South Korea down $45/mt from the prior week. Bids at $370-375/mt cfr with no deals heard this week.
The weekly Davis Indexes for P&S 5ft and #1 HMS, Wednesday, dropped by $40/mt and $38/mt to $403/mt and $385/mt cfr South Korea, respectively. The index for shredded fell by $38/mt to $400/mt from the prior week.
A South Korean mill Dongkuk bought Japanese #2 HMS at JPY36,500/mt fob ($351.6/mt) on Tuesday, down by JPY5,000/mt from prior deal.
On Wednesday, domestic scrap bids fell by KRW10,000/mt ($9/mt) with domestic Heavy A trading at KRW420,000-425000/mt delivered Pohang in line with the drop in global scrap prices.
Taiwan
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) fell by $14/mt on Wednesday from Monday to $382/mt cfr Taiwan. Some traders reduced bids to $375/mt, while exporters revised offers to $385/mt to offload inventory and avoid a cash crunch. Few deal for USWC HMS 1 & 2 (80:20) heard at $380/mt cfr on Wednesday.
Mills are tracking Japanese export and South Korean import price trends to gauge price direction. With Turkish purchase prices falling $25.2/mt on Tuesday, Taiwanese importers are expected to reduce bids further.
Domestic scrap prices Wednesday fell by $14/mt from Monday amid a fall in finished steel demand, said traders.