East Asia’s imported scrap prices remained strong despite limited demand. High rebar prices in Southeast Asian markets like Singapore are supporting high scrap offers in the region. An increase in construction activities is reflected in faster depletion of finished steel inventories, which is expected to boost demand for raw materials in the coming weeks.
Feng Hsin raises scrap prices
Taiwan’s major EAF steel producer Feng Hsin steel Monday hiked its ferrous scrap procurement prices by TWD300/mt ($10/mt) from the prior week. Feng Hsin had last increased scrap prices on Aug 3. Feng Hsin’s domestic base HMS 1&2 (80:20) prices are at TWD8,200mt ($280/mt) delivered Taichung plant.
The steelmaker has kept its rebar sales offers unchanged amid weak domestic steel demand. Feng Hsin’s listed rebar prices are at TWD14,700/mt for 12-21 mm diameter bars ex-works Taichung excluding value-added tax. The company had raised prices for the grade on Aug 20, up TWD300/mt from Aug 17.
In Taiwan, steel mills are expected to place higher bids for domestic scrap in order to maintain regular supply from the yards. In seaborne markets, prices for US-origin containerized ferrous scrap remained high with a few offers for HMS 1&2 (80:20) at $265/mt cfr Taiwan on Aug 24. Some steelmakers are operating at 50pc capacity utilization rate due to maintenance activities.
Kansai tender
In Japan, the winning bid for Kansai ferrous scrap tender was at JPY27,110/mt ($255/mt) fas Japan in which 5,200mt of scrap was booked by the Shinsho Trading Company. The loading period for the tender is from Sep 1 to 30. The Kansai ferrous scrap tender was held on Aug 24 in Japan’s Osaka region. Average bids for the tender rose by JPY4,000/mt ($37.69/mt) from the prior month. A Vietnamese mill bought the shipment of 5,200mt #2 HMS, said sources to Davis Index.
In August, Japanese ferrous scrap has continued its uptrend with #2 HMS offered at JPY26,000-26,500/mt fas Kanto and HS and Shindachi scrap both at JPY28,000-28,500/mt fas Japan on Monday. Japanese #2 HMS scrap traded at JPY27,000-27,500/mt fob Japan to South Korean mills. Major steelmaker, Dongkuk Steel purchased #2 HMS at JPY27,500/mt fob Japan last week.