Japanese ferrous scrap export prices trended up on Wednesday, while Tokyo Steel domestic scrap prices remained flat this week after raising prices by JPY1500/mt last week for Okayama and Takamatsu plant. As export offers rise on global cues, traders are expecting Tokyo Steel to raise domestic scrap prices on Friday or next week.
With the increased buying by Turkish importers, market participants expect a further rise in global ferrous scrap prices. Scrap exporters raised offers despite limited deals as they expect demand for ferrous scrap to improve in the domestic market. However, Japanese HRC prices remained under pressure due to the availability of lower-priced material from China.
In the Kanto region, the Davis Index for #2 HMS settled at JPY27,250/mt($253/mt) fas port, up by JPY750/mt. Deals were heard at JPY27,000-27,500. The index for the same grade rose by JPY1,144/mt to JPY27,977/mt fob Japan. Offers for the grade rose to $315/mt cfr, while deals were heard at $305/mt prior week. Traders expect Japan export prices to rise further on rising demand.
HS deals were heard for Vietnam at $330/mt cfr last week. The weekly index for the grade settled at JPY30,250/mt fas. Deals were heard at JPY JPY30,000-30,500/mt fas.
Limited deals were heard for #1 busheling (Shindachi) amid high offers. Deals were heard for the grade at $332-335/mt cfr Vietnam last week and JPY33,500/mt cfr Korea on Wednesday. Weekly Index for the grade rose by JPY750/mt to settle at JPY30,000/mt fas from the prior week. In the export market, the weekly index for #1 busheling (Shindachi) rose by JPY750/mt to JPY30,500/mt fob Japan. Deals were heard at Index price.
The weekly Davis Index for shredded settled at JPY29,750/mt fas, up by JPY550/mt from a week ago, deals were heard at JPY29,500-30,000/mt fas. South Korean mills focused on more bulk cargo deals which are priced lower than containerized scrap.
Yards offered Japanese HMS 1&2 (50:50) Wednesday at $295-300/mt cfr Taiwan, up by $5-10 from the prior week, while deals were heard at $295/mt cfr Taiwan. The index for the grade rose by $10/mt to settle at $294/mt cfr Taiwan. The index for the same grade rose by $13/mt for Vietnam to settle at $306/mt cfr, with no trades heard. Offers for the grade rose to $310/mt cfr Vietnam on Wednesday
Traders are optimistic of a recovery in demand as steelmakers are likely to ramp-up production in most Asian countries amid gradual rise in demand from infra and auto sectors.