Imported ferrous scrap prices saw an uptick in South Korea on global supply crunch. Mills in the country are opting for domestic scrap over imported, lifting its prices by KRW10,000-15,000/mt. Amid present uncertainty in Japan and Southeast Asia, steelmakers stayed away from bulk markets.
In the bulk markets, US west coast-origin HMS1&2 (80:20) in bulk cargoes was offered unchanged at $245-250/mt cfr South Korea with no takers at those levels. Mills booked #2 HMS at JPY20,500-21,500/mt fob Japan, up by JPY1,000/mt from last week. Japanese HS scrap was offered at JPY25,000-26,000/mt fob Japan to South Korean mills, up by JPY2,000/mt from the prior week.
In containers market, the weekly Davis Index for containerised HMS 1&2 (80:20) settled at $226/mt cfr South Korea, up by $3/mt. Steel mills, however, were not interested in accepting higher offers of $228-230/mt cfr South Korea earlier this week. The weekly Davis Index for containerised shredded settled at $238/mt cfr South Korea, up by $3/mt. The index for P&S and busheling settled at $243/mt cfr and $253/mt cfr South Korea, up by $3/mt from the prior Wednesday.
South Korean domestic scrap prices rose by KRW15,000/mt from the prior week. Heavy A scrap traded at KRW260,000-265,000/mt delivered to steelmaker Incheon producer.
In India, the daily Davis Index for containerised shredded remained unchanged at $265/mt cfr Nhava Sheva on Wednesday. Shredded in containers was offered at $270-275/mt cfr Nhava Sheva. Despite the government efforts to promote some economic activity, no buyers or traders were ready for transactions citing a total halt in demand.
In Pakistan, the daily Davis Index for containerised shredded dropped by $3/mt to settle at $267/mt cfr Port Qasim on Tuesday. Bids for containerised shredded were at $265-267/mt cfr Qasim countering offers of $270-275/mt cfr Qasim. Amid extension in lockdown till May 4 and ongoing Ramadan lull, steelmakers have faint hopes of recovery in the short term.
In the container market, the daily Davis Index for containerised shredded scrap settled at $279/mt cfr Chattogram on Tuesday, down by $4/mt. Leading steelmakers remained away from buying activity but a mill placed bids for containerised shredded at $265-267/mt cfr Chattogram. Offers were at $285-290/mt cfr Chattogram. During extended lockdown till May 5, banks are working for two hours with limited staff. Infrastructure projects are also on hold causing difficulties for importers.
The daily Davis Index for containerised HMS 1&2 (80:20) settled at $222/mt cfr Taiwan on Wednesday, down by $1/mt. Taiwanese mills lowered their bids following a decline in Turkish bulk scrap prices.
($1=KRW1,230.83; INR75.82; PKR161.16; BDT84.96; NTD29.89)