Japanese ferrous scrap export prices continued to rise. Deals for #2HMS were heard at JPY26,500-27,000/mt ($244-251/mt) fas while deals on fob basis were at JPY27,000-27,500/mt. Trades for #2HMS were at $295 cfr Vietnam while HS scrap sold at $315-320/mt.
Most mills in South Korea preferred domestic scrap amid higher Japanese offers.
The weekly Davis Index for #1 busheling (Shindachi) rose by JPY1,000/mt to JPY31,000/mt fob, while fas price remained flat from the prior week at JPY28,750. The index for HS remained flat at JPY28,750/mt fas, while on fob basis rose by JPY300/mt to settle at JPY30,000/mt.
The weekly index for #1HMS rose by JPY750 to JPY27,750/mt fas, while it rose by JPY775/mt to JPY28,750/mt on fob basis. Deals for the same grade were heard at JPY28,500-29,000/mt fob.
Market participants indicated that export prices rose this week by JPY500-1,000/mt, while domestic scrap traded flat from the prior week.
Yards offered Japanese HMS 1&2 (50:50) at $295/mt cfr Taiwan early this week but trades were heard at $285/mt cfr, with the index settling up by $2/mt at $287/mt. Trades were also heard for the same grade to Vietnam at $290/mt with index settling up by $4/mt to $292/mt.
Domestic scrap prices in Vietnam are not as strong as imports. Mills cut long steel prices amid weak domestic demand. Vietnamese mills are cautiously buying imported ferrous scrap, while traders are expecting this to change very soon as productions will ramp up in September.
The weekly Davis Index for shredded rose marginally by JPY50/mt to JPY28,500/mt fas with deals at JPY28,500-290,00/mt.
Suppliers to southeast Asian markets raised offers by around JPY500-1,000/mt from the prior week. Domestic supply crunch in South Korea, Taiwan, and Vietnam have also pushed up scrap prices. One Korean mill bought Japanese shredded at JPY29,500/mt fob this week.