The weekly Davis Index for containerised HMS 1&2 (80:20) settled at $230/mt cfr South Korea, down by $1/mt.
Mills continued to struggle with weak finished and semi-finished steel demand and prices in the domestic and export markets. Imported scrap trades were close to nil this week as steelmakers relied mainly on domestic scrap.
Importers believe prices are unlikely to fall anytime soon as the index for US-origin HMS 1 & 2 (80:20) rose by around $5/mt to $258.17/mt from last Wednesday on the back of bullish offers.
The indexes for #1 busheling increased by $2/mt to $260/mt cfr and shredded rose by and $1/mt to $243/mt cfr. Bids for shredded were at $240/mt cfr South Korea with no trades heard.
The weekly index for containerised #1 HMS scrap settled at $237/mt, down by $3/mt.
On July 13, Hyundai steel announced bids for Japanese HS scrap equivalent to P&S, shindachi, and shredded grades at JPY24,500/mt ($229/mt) fob Japan. These, however, were down by JPY500/mt from the last week’s bids at JPY25,000/mt fob Japan.
Hyundai steel also placed bids for #2 HMS at JPY22,000/mt fob Japan and for a mix of H1: H2 at JPY22,500/mt fob Japan. Suppliers were reluctant to accept these bids. In fact, offers from Japan in small bulk turned up following higher bids recorded for Kansai and Kanto tender in the country.
South Korea Domestic
Domestic ferrous scrap prices dropped further amid high scrap inventories with mills. Dongkuk, SeAH, YK, Daehan, and Hyundai Steel lowered their domestic scrap purchase prices by KRW5,000-10,000/mt del plant for a fourth successive week.
Imported scrap prices in Taiwan rose by $2/mt on Wednesday on the back of bullish offers at $230-240/mt. No trades were heard due to sluggish demand for finished steel in the domestic market. The ongoing 2020 Pacific typhoon season expected to last till August at the minimum is likely to hit demand further. Buyers thus were not keen on higher prices.
The Davis Index for containerised US-origin HMS 1&2 (80:20) settled at $232/mt cfr Taiwan from Wednesday.
In the domestic market, scrap and rebar prices remained flat. Domestic steelmaker Feng Hsin steel rolled over the prices from the prior week.
In small bulk markets, Japanese HMS 1&2 (50:50) was offered at $248-250/mt cfr Taiwan, up by $8/mt with bids at $245/mt cfr Taiwan.
(1$= KRW1,201; JPY106.9; TWD29.48)