Imported ferrous scrap prices in Asia continued to increase on bullish Japanese export offers amid tight supply. Turkish mills continued booking bulk cargoes from the US at higher prices, pushing offers up in Taiwan, Vietnam and South Korea.
Japan
Japanese ferrous scrap export prices moved up due to improved demand from South Korean mills and limited availability in the market.
Trades of Japanese bulk cargoes of HMS 1&2 (50:50) and #2 HMS with South Korean mills concluded at JPY24,500/mt fob Japan or JPY26,000-26,500/mt cfr South Korea, up JPY1000-1500/mt from the prior week.
Domestic ferrous scrap prices continued to increase in the week. Tokyo Steel raised scrap purchase prices for the fifth time since May 22. Effective June 4, the mill increased bids by JPY500/mt del Tahara and other plants and by 1,000/mt delivered Kyushu plant.
Taiwan
Imported ferrous scrap prices in Taiwan rose marginally with thin trades heard.
The daily Davis Index for containerised US-origin HMS 1&2 (80:20) rose by $2/mt to $238/mt cfr Taiwan on Thursday and by $10/mt from the week prior. Trades were reported at $237-238/mt cfr Taiwan for FEUs from the US. Some deals were also heard at $235-238/mt cfr for US-origin HMS 1&2 (80:20).
Demand for finished steel is weak, a seasonal occurrence shares a Davis Index source. Thus, buyers are likely to consider purchases from other countries to reduce input cost. South American-origin HMS 1&2 (80:20) was sold at $230/mt cfr Taichung and $225/mt cfr Kaosiung. Offers for Australian-origin HMS 1&2 (80:20) were at $245/mt.
The Davis Index for containerised shredded settled at $248/mt cfr Taiwan, up by $11/mt from last Thursday. Few deals were heard at $245-250/mt cfr Taiwan.
Deals for #1 HMS were at $245/mt with its index settling at $245/mt cfr, up by $9/mt from the week prior. Trades for P&S 5ft were at $250-255/mt cfr Taichung with the index settling at $253/mt cfr on Thursday, up by $12/mt from the prior week.
In small bulk markets, Japanese HMS 1&2 (50:50) was offered at $260-265/mt cfr Taiwan and offers for busheling were at $280-285/mt cfr Taiwan. Japanese bulk shredded deal was heard at $272-273/mt cfr Taiwan on Wednesday.
Vietnam
Vietnamese mills booked limited ferrous scrap as a sharp rise in Japanese prices squeezed their margins. Few bookings of containerized HMS 1&2 (80:20) were heard at $242-245/mt cfr Vietnam with its index settling at $245/mt cfr Vietnam, up by $8/mt from the prior week. Offers from US suppliers moved up due to increased bookings by Turkey mills. Turkey’s HMS 1&2 (80:20) index increased by around $5/mt to $255.5/mt cfr on Tuesday from last Wednesday.
The Davis Index for containerized #1 HMS settled at $248/mt cfr Vietnam, up by $5/mt from the prior week. A deal for South American #1 HMS was heard at $245/mt cfr.
US-origin shredded in TEUs was offered at $260/mt cfr Haiphong, with its index settling at $258/mt cfr Vietnam. Bids were at $255/mt cfr Vietnam. The index for P&S scrap in FEUs settled at $266/mt cfr Haiphong, up $6/mt from the prior week.
US-origin P&S was offered at $270/mt cfr Vietnam.
In small bulk markets, Japanese and Hong Kong origin HMS 1&2 (50:50) traded at $260-265/mt cfr South Vietnam and $255/mt cfr North Vietnam, up by $10/mt. Offers for busheling in bulk were at $280-285/mt cfr Vietnam.
For Japanese bulk shredded, bids were at $275/mt cfr South Vietnam. But offers were at $280-285/mt cfr Vietnam.
Indonesia
Indonesian mills booked a limited volume of ferrous scrap due to low demand for finished steel. Few offers for HMS 1&2 (80:20) were at $240-242/mt cfr Indonesia with its index settling at $238/mt, up by $4/mt from the prior week.
US-origin shredded in TEUs was offered at $260/mt cfr Jakarta, with its weekly Davis Index settling flat at $258/mt. A deal was heard for shredded from Israel at $245/mt cfr. The index for P&S scrap in FEUs settled at $265/mt cfr Jakarta, up by $2/mt from the prior week. Limited deals were heard at $265/mt.
The weekly index for busheling scrap settled at $273/mt cfr Jakarta, up by $5/mt. Offers for US-origin busheling were at $275/mt, but buyers refrained from buying at these rates.
Domestic scrap equivalent to P&S was offered at IDR5,050/kg including local taxes.
($1=JPY108.86; IDR14,175.5)