Prices of containerized imported ferrous scrap rose pressured by limited domestic scrap and imported offers. Many mills reduced bids in line with falling raw material prices like iron ore. The weekly Davis Index for containerized HMS 1&2 (80:20), Wednesday, settled at $440/mt cfr South Korea, up by $10/mt, despite bids at $430/mt cfr on Wednesday. No deals heard.
The weekly Davis Indexes for P&S 5ft, #1 HMS, and shredded rose by $10/mt, $10/mt, and $8/mt to $463/mt, $448/mt, and $453/mt cfr South Korea, respectively.
Unable to gauge the price direction, some South Korean mills were undecided on bid levels. They are, therefore, closely watching Turkish ferrous scrap trends and Japanese exports to China. Domestic scrap bids increased this week as Korean mills may buy locally for immediate requirements and adopt a wait and watch approach for imports.
The Davis Index for domestic Heavy A rose KRW7,500/mt($6.9/mt) to KRW425,000/mt and KRW435,000/mt ($399.5/mt) delivered Incheon and Pohang, respectively, on Tuesday.
The Davis Index for containerized US-origin HMS 1&2 (80:20), Wednesday, rose by $5/mt from the prior day to $440/mt cfr Taiwan. Many mills resisted current offer levels and placed bids of $420-425/mt cfr. Few deals heard at $440/mt on Wednesday amid limited supply.
Traders indicated that US yards are still offering limited volumes forcing importers to seek South American scrap. While exports for South America are constrained due to container shortage and rise in freight rates.