The weekly Davis Index for containerized HMS 1&2 (80:20), Wednesday, rose by $13/mt to $281/mt cfr South Korea. Import prices for other scrap grades also increased as suppliers raised offers.
Domestic scrap prices, however, are expected to fall this week by KRW10,000/mt amid excess supply. Mills could thus opt for lower-priced domestic scrap in the coming days.
Medium-scale steel mills refrained from importing amid the rising global ferrous scrap prices. Demand for finished steel on the other hand in the domestic and export market remains tepid.
The weekly index for P&S 5ft, #1 HMS, and shredded rose by $16/mt, $15/mt, and $14/mt to $296/mt, $285/mt, and $291/mt cfr South Korea, respectively.
No deals were heard either in the container or the bulk market this week. A deal Japanese #2 HMS at JPY28000-28500/mt fob was heard last Thursday.
South American suppliers offered HMS 1&2 (80:20) at $275/mt cfr, up by $10/mt from the prior week.
In the domestic market, the Davis Index for domestic Heavy A delivered Incheon and Pohang, rose by KRW6,700/mt and KRW7,500/mt ($6.4/mt) to settle at KRW332,500/mt ($284/mt) and KRW327,500, respectively. Deals were heard at the index prices.
The daily index for US-origin containerized HMS 1&2 (80:20) trended up by $2/mt to $281/mt cfr Taiwan on Wednesday. With Japan and US-origin bulk prices rising this week, importers stayed away from booking material.
Offers for the US and Australia-origin HMS 1&2 (80:20) were at $285-290/mt cfr levels, while bids lagged at $275/mt cfr.
Sustained trading in Turkey and the rise in average bids for the Kanto tender pushed offers for imported material higher. Finished steel demand, however, is yet to improve. Mills thus opted for purchasing domestic scrap in limited quantities. Some US traders indicated that offer prices may have reached a short-term peak and could soften in the coming days if Turkish mills reduce buying. Offers for South American HMS 1&2 (80:20) were at $270-275/mt cfr with no trades heard.
A rise in global finished steel prices and demand in October seems to be on the cards with trades across the world picking up.