Japan
The weekly index for #2 HMS, Wednesday, rose JPY5,000/mt to JPY50,000/mt ($459/mt) fob Japan. On a fas basis, the index for the grade rose JPY4,250/mt ($39.08/mt) to JPY48,500/mt ($445.95/mt) fas Japan.
Major South Korean mills stayed away from bidding for Japanese scrap. Tokyo Steel hiked ferrous scrap purchase bids twice — on Monday and Tuesday after the average bids at the Kanto tender led to a hike in export offers.
Firm HRC and billet asking prices increased profit margin for Japanese EAF makers. But amid a shortage of scrap and the resulting rise in prices, mills are worried about margins narrowing. Increased inquiries from China and other Asian countries could lift the asking prices.
The weekly index for P&S 5ft (small bulk) China port settled at $530/mt cfr, up by $20/mt due to a rise in offers. Negotiations for small bulk cargoes of P&S were heard at $530-535/mt cfr China on Wednesday.
Before the Golden Holidays, in the small bulk market Japanese #1 busheling (Shindachi) offers were above JPY50,500-51,000/mt fob. The weekly index for the grade rose JPY4,000/mt to JPY54,250/mt fob Japan. On a fas basis, the index rose JPY4,250/mt to JPY53,000/mt fas Japan.
The weekly Davis Indexes for shredded and HS, Wednesday, rose by JPY4,250/mt to JPY52,500/mt, and JYP4,750 to JPY53,250/mt fas Japan, respectively, amid limited trades. Offers for Japanese HMS 1&2 (50:50) were at $475-510/mt cfr Vietnam from the prior week with the index for the grade settling at $483/mt cfr Haiphong, up by $18/mt on limited availability and elevated small bulk freights.
The index for Japanese HMS 1&2 (50:50) rose $18/mt to $483/mt cfr Taiwan. Most offers were unchanged from last week at $485-490/mt cfr against bids of $470-475/mt cfr Taiwan. The disparity between bids and expectations kept the market silent.
South Korea
The weekly Davis Index for containerized HMS 1&2 (80:20), Wednesday, settled at $460/mt cfr South Korea, up by $32/mt. Mills were unwilling to accept prices above $450-455/mt cfr South Korea for containerized HMS 1&2 (80:20) amid ample availability of domestic scrap.
The weekly Davis index for P&S 5ft, Wednesday, climbed $32/mt to $485/mt cfr South Korea, while the index for #1 HMS and shredded increased by $34/mt to $470/mt, and $32/mt to $477/mt cfr South Korea, respectively.
Trades for medium and low-grade scrap in containers remained paused, as most buyers bought only premium grades from overseas markets. South Korean mills stayed away from bulk purchases from Russia, Japan, and the US West Coast this week.
Offers for #2 HMS rose JPY4,500-5,000/mt to JPY48,500-49,000/mt fas from the week prior.
Taiwan
Imported ferrous scrap offers jumped in Taiwan following the recovery in Turkish bulk prices. High freight rates and increased steel demand also lifted prices. The weekly Davis Index for containerized US-origin HMS 1&2 (80:20), Wednesday, settled at $458/mt cfr Taiwan, up by $29/mt. On Wednesday, most offers were in the range of $465-480/mt cfr Taiwan with deals at $450-455/mt cfr Taiwan.
With a rise in Taiwanese prices, South Korean mills decided to stay away from booking imported containers. In the coming days, appetite for ferrous scrap imports is expected to rise with a sharp rise in iron ore, HRC, rebar, and billet prices in almost all Asian countries, including China.
($1=JPY108.7, TWD27.9, KRW1125.40)