The weekly index for #2 HMS, Wednesday, rose by JPY2,000/mt to JPY52,000/mt ($476.09/mt) fob Japan. On a fas basis, the index for the grade rose JPY2,500/mt ($22.89/mt) to JPY51,000/mt ($466.94/mt) fas Japan.
A major South Korean mill bought HS at JPY60,000/mt cfr South Korea and #1 busheling at JPY59,000/mt cfr South Korea. Tokyo Steel hiked ferrous scrap purchase bids on Tuesday following global steel prices and tightened demand.
The weekly index for P&S 5ft (small bulk) China port settled at $565/mt cfr, up by $35/mt due to a rise in offers. Negotiations for small bulk cargoes of P&S were heard at $570-575/mt cfr China on Wednesday.
In the small bulk market, Japanese #1 busheling (Shindachi) offers were above JPY56,500-57,500/mt fob. The weekly index for the grade rose JPY2,750/mt to JPY57,000/mt fob Japan. On a fas basis, the index rose JPY2,750/mt to JPY55,750/mt fas Japan.
The weekly Davis Indexes for shredded and HS, Wednesday, rose by JPY2000/mt to JPY54,500/mt, and JYP1,750 to JPY55,000/mt fas Japan, respectively, amid limited deals. Offers for Japanese HMS 1&2 (50:50) were at $500-515/mt cfr Vietnam, with the index for the grade settling at $508/mt cfr Haiphong, up by $10/mt.
The index for Japanese HMS 1&2 (50:50) rose by $10/mt to $493/mt cfr Taiwan. Most offers were unchanged from last week at $495-510/mt cfr against bids of $480-495/mt cfr Taiwan.
The weekly Davis Index for containerized HMS 1&2 (80:20), Wednesday, settled at $475/mt cfr South Korea, up by $5/mt. Mills were unwilling to accept prices above $470-480/mt cfr South Korea for containerized HMS 1&2 (80:20) amid ample supply of domestic scrap.
The weekly Davis index for P&S 5ft, Wednesday, climbed $15/mt to $500/mt cfr South Korea, while the index for #1 HMS and shredded increased by $15/mt to $485/mt, and $477/mt cfr South Korea, respectively.
Wednesday was a public holiday in South Korea. South Korean mills continued to stay away from bulk purchases from Russia, Japan, and the US West Coast this week.
Offers for #2 HMS rose JPY2,500/mt to JPY51,000/mt fas from the week prior.
Imported ferrous scrap offers jumped in Taiwan following a recovery in Turkish bulk prices with offers for US-origin material in the range of $500-$505/mt. Elevated 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 $479/mt cfr Taiwan, up by $21/mt. On Wednesday, most offers were in the range of $480-485/mt cfr Taiwan with deals at $476-480/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 could rise with a sharp rise in iron ore, HRC, rebar, and billet prices in almost all Asian countries, including China.
China could also be back in the import market with their government on a mission to curb iron ore prices with strict policies. Meanwhile, crude steel production levels hit the highest.
($1=JPY109.08, TWD27.94, KRW1129.24)