Containerized imported ferrous scrap prices decreased this week amid bearish sentiments arising from slow buying in Turkey and limited demand for finished steel in South Korea. Most mills halted imports as Turkish buyers lowered bids and steel prices turned volatile in China. Fall in iron ore and other raw material prices also negated sentiments.
Mills stayed away from containerised purchases and preferred negotiating for bulks from Japan and the US. Steel mills were cautiously watching purchase from other Asian countries before negotiations. Bids post USWC bulk shipment to Vietnam at $460/mt cfr were heard at $445/mt with offers at $450/mt.
Many US-based exporters are worried about supplying containerised scrap on schedule due to the low availability of containers. Amid rising freight rates, suppliers hope ferrous scrap prices have bottomed out.
The weekly Davis Index for containerized HMS 1&2 (80:20), Wednesday, fell by $24/mt from the prior week to settle at $404/mt cfr South Korea. Bids fell by $25/mt to 400/mt cfr on Wednesday from the prior week, while offers fell by $15-20/mt to $405-410/mt cfr with suppliers trying to clear off inventory in anticipation of a further fall in global scrap prices.
Early in the week, few deals heard at $405/mt cfr but mills stepped back in anticipation of a further fall this week. With easing supplies, yards were keen on offering more volumes, but buyers stepped back and preferred to wait.
The weekly Davis Indexes for P&S 5ft and #1 HMS, Wednesday, fell by $20/mt and $29/mt to $431/mt and $404/mt cfr South Korea, respectively. The index for shredded fell by $/23mt to $420/mt from the prior week.
Following the low Kansai bids, Tokyo steel cut scrap procurement prices. The steelmaker’s latest bids for #2 HMS are at JPY41,500/mt ($380/mt) delivered Utsunomiya works in the Kanto region.
The weekly Davis Index for domestic Light A was flat at KRW420,000/mt($372.2/mt) delivered Pohang mill. With the current fall in Japanese domestic scrap and lowered bids by Turkish and Chinese mills, mills are expected to remain cautious and slow trades.