Prices of containerized imported ferrous scrap fell pressured by lowered bids by Korean mills. Limited demand for finished steel and holidays in most regions kept buyers away from any new purchases. 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 $430/mt cfr South Korea, down by $4/mt, despite firm offers. Bids were at $420/mt cfr on Wednesday with no deals heard.
The weekly Davis Indexes for P&S 5ft, #1 HMS, and shredded fell by $6/mt, $5/mt, and $5/mt to $453/mt, $438/mt, and $445/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 domestic offers to assess the scenario. Domestic scrap bids increased this week as Korean mills may buy locally for immediate requirements and wait till January first week before any purchases from the import market.
The Davis Index for domestic Heavy A rose by KRW17,500/mt ($16/mt) to KRW417,500/mt and KRW427,500/mt ($390.8/mt) delivered Incheon and Pohang, respectively, on Tuesday.
The Davis Index for containerized US-origin HMS 1&2 (80:20), Wednesday, fell by $5/mt from the prior day to $433/mt cfr Taiwan. Many mills resisted current offer levels and placed bids of $420/mt cfr. Amid the holiday season, most mills have limited purchase and reduced bids considering the pause in the Turkey market this week. Iron ore prices cfr China have also reduced. Most yards with limited inventories are holding back on offers.