Imported ferrous scrap prices in Asia continued to increase this week, due to global scarcity. Overall activities in the market were limited with many countries in South East Asia inducing more stringent measures to contain the rising number of new COVID-19 cases.
Japanese ferrous scrap export prices increased by JPY1,000-1500/mt from last week on tightened supply. In Kanto region, #2 HMS traded at JPY19,500-20,000/mt fob Tokyo bay, while HS and Busheling traded at JPY23,500-24,000/mt and JPY24,500-25,000/mt fob Japan.
Imported ferrous scrap prices in Taiwan have been rising daily this week amid supply crunch and limited offers from US and Europe supplier yards. Taiwanese steel mills increased domestic ferrous scrap and rebar prices by NT$300-500/mt from a week ago.
In container markets, the weekly Davis Index for US-origin HMS 1&2 (80:20) settled at $220/mt cfr Taiwan on Thursday, up by $9/mt. Trades for containerised HMS 1&2 (80:20) concluded at $215-218/mt cfr Taiwan early in the week and then rose to $220/mt cfr Taiwan by Thursday. Offers from US yards were in the range $220-225/mt cfr Taiwan.
A few buyers continued to bid at $215/mt cfr Taiwan citing weakened finished steel sales.
The Davis Index for containerised shredded settled at $234/mt cfr Taiwan, up by $9/mt from the prior week. US-origin containerised shredded was offered at $235-240/mt cfr Taiwan in 20ft containers, with bids from steel mills lagging at $230/mt cfr Taiwan.
In bulk markets, Japanese HMS 1&2 (50:50) in small bulk cargoes traded at $235/mt cfr Taiwan, up by $10/mt from the prior week. On Thursday, offers from Japanese suppliers rose in the range $240-245/mt cfr Taiwan, with no takers. Japanese #2 HMS in small bulk cargoes traded at $225-230/mt cfr Taiwan.
In bulk markets, Vietnamese steel mills booked Japanese #2 HMS scrap despite their prices moving up by $10-15/mt.Offers for #2 HMS in small bulk cargoes were in the range of $235-245/mt cfr South Vietnam and $245/mt cfr in North Vietnam.
Australian bulk cargo for HMS 1&2 (80:20) was offered at $250/mt cfr North Vietnam.
Hong Kong origin HMS 1&2 (50:50) was offered at $238-245/mt cfr South Vietnam, up by $10/mt with no takers. A steelmaker in the northern region booked Japanese busheling scrap in 20ft containers at $250/mt cfr Vietnam. Offers for HS scrap were in the range $275-280/mt cfr North Vietnam, but deals concluded at $265-270/mt cfr Vietnam.
In the container market, the Davis Index for busheling, P&S 5ft and shredded, settled at $258/mt cfr, $250/mt cfr and $244/mt cfr Vietnam, respectively.
The Davis Index for containerised HMS 1&2 (80:20) settled at $227/mt cfr Vietnam, up by $8/mt from the prior week. US suppliers offered HMS 1&2 (80:20) at $230-235/mt cfr Vietnam in 60ft containers.
Indonesian mills stayed away from buying ahead of the Ramadan month, and the resulting unavailability of labour, as most travel to their hometowns to mark the occasion.
The Davis Index for containerised P&S 5ft settled at $255/mt cfr Jakarta, up by $9/mt from the prior week. US-origin P&S in 40-foot containers traded at $255/mt cfr Jakarta. The weekly index for busheling scrap settled at $261/mt cfr Jakarta, up by $10/mt.
South Korean busheling scrap traded at $270-275/mt cfr Jakarta, up by $10-15/mt from the prior week. The Davis Index for containerised shredded settled at $250/mt cfr Jakarta, up by $10/mt from the prior week. A few buyers were still bidding at $245/mt cfr Jakarta.
The Davis Index for containerised HMS 1&2 (80:20) settled at $235/mt cfr Jakarta, up by $10/mt from the prior week. Offers for US-origin HMS 1&2 (80:20) were at $250/mt cfr Jakarta with no takers at present.
Malaysian ferrous scrap importers resumed enquiries and trades this week as the lockdown is slated to end soon. Mills bid for US-origin shredded at $245-250/mt cfr Malaysia and South American HMS 1&2 (80:10) in 40ft containers traded at $230-235/mt cfr Malaysia, up by $10/mt from the prior week.
($1=JPY107.64; NT$30.09; VND23,442.5)