Imported ferrous scrap prices in Asia continued their downtrend for a fourth successive week. Finished steel trades halted on rising COVID-19 cases, yet a few steelmakers booked ferrous scrap for their regular requirements. Chinese manufacturing activities have resumed to the pre-coronavirus levels. In China, improved domestic steel demand, rise in billet and HRC prices improved market sentiments in Southeast Asia.
Still, prices could drop further driven by the Turkey market. The index for HMS 1&2 (80:20) settled at $249/mt cfr Turkey on March 19, down by $11/mt from the day prior.
Japan
Japanese ferrous scrap prices remained under pressure for a fourth successive week. On Thursday #2 HMS traded at JPY21,500-22,000/mt fob in bulk volumes, down by JPY500-1,000/mt from trades reported early this week. Markets in the country will remain shut on March 20 for vernal equinox day, a national holiday and reopen only on Monday.
South Korean mills placed bids for shredded, busheling and HS scrap in bulk cargoes at JPY27,000/mt cfr South Korea. US origin West coast ferrous scrap yards offered containerised HMS 1&2 (80:20) at $235/mt cfr South Korea this week.
Taiwan
Imported ferrous scrap prices in Taiwan dropped by $8-10/mt on global cues. Trades dipped as buyers expect prices to drop further in the coming days.
The weekly Davis Index for containerised US-origin HMS 1&2(80:20) settled at $223/mt cfr Taiwan on Thursday, down by $8/mt. Trades for containerised HMS 1&2 (80:20) concluded at $225-228/mt cfr Taiwan early in the week. Bids from steelmakers subsequently dropped to $220-222/mt cfr Taiwan, driven by a drop in Turkey’s bulk ferrous scrap prices, which fell to a five-month low.
The Davis Index for containerised shredded settled at $232/mt cfr Taiwan, down by $8/mt from the prior week. Suppliers offered shredded at $235-240/mt cfr Taiwan. Shortage of containers still prevails, but, resuming Chinese activities are likely to ease this shortage in the near term.
Domestic rebar prices in Taiwan dropped by NT$300-500/mt this week on limited demand in the market. A few mills offered an additional discount of NT$200-300/mt on grade 40 rebar, taking its prices to NT$13,800-14,000/mt.NT$14,200-14,200/mt ex-producer.
Japanese HMS 1&2 (50:50) in small bulk cargoes was offered at $240-245/mt cfr Taiwan. On Wednesday 5000mt of Japanese HMS 1&2 (50:50) traded at $239/mt cfr Taiwan. Japanese #2 HMS was offered at $235-240/mt cfr Taiwan, with no takers at those levels. A Japanese EAF maker offered billets at $405-410/mt cfr Taiwan.
Vietnam
Vietnamese mills continued booking Japanese ferrous scrap this week. Steelmakers, however, expect billet prices to fall in Southeast Asia in the near term and weaken scrap trades.
On March 17, a mill in northern region booked 6,000mt of Japanese busheling scrap in small bulk cargo at $274-275/mt cfr North Vietnam. Japanese P&S scrap equivalent to HS traded in small bulk cargoes at $270/mt cfr North Vietnam.
Hong Kong origin HMS 1&2 (50:50) was offered at $240-245/mt cfr Vietnam in bulk cargoes, down by $15-20/mt from the prior week.
Late this week, Japanese #2 HMS in bulk cargoes was offered at $245-250/mt cfr Vietnam, down $10/mt from the prior week. Trades for #2 HMS were reported at $240-242/mt cfr Vietnam.
The Davis Index for containerised P&S 5ft settled at $254/mt cfr Vietnam, down by $8/mt from the prior week. A mill based in the northern region opted for US-origin P&S in 40ft containers at $250/mt cfr Vietnam.
The weekly index for containerised HMS 1&2 (80:20) dropped to $234/mt cfr Vietnam, down by $6/mt.
Indonesia
Indonesian mills turned silent this week as cases of COVID-19 continued to rise globally and impacted stock markets. In a bid to elevate the pressure on the Indonesian economy, the government has slashed bank rates.
The Davis Index for containerised P&S 5ft settled at $273/mt cfr Jakarta, down by $14/mt from the prior week. US-origin P&S in 40feet containers traded at $268-270/mt cfr Jakarta. Offers for the grade were in the range of $275-280/mt cfr Jakarta, but bids were at $265/mt cfr Jakarta.
An Indonesian mill offered 4sp billet at $385-390/mt cfr Southeast Asia, down by $5/mt from the prior Thursday. Domestic heavy melt scrap was priced at $250/mt del Indonesia mill, down by $15/mt from the prior week.
The weekly index for busheling scrap settled at $280/mt cfr Jakarta, down by $14/mt. Steel mills were looking for very cheap offers in the market and suppliers refrained to offer at those levels. Offers for busheling dropped $285-290/mt cfr Jakarta down by $15/mt from the prior week.
The Davis Index for containerised shredded settled at $270/mt cfr Jakarta, down by $12/mt from the prior week.
The Davis Index for containerised HMS 1&2 (80:20) settled at $240/mt cfr Jakarta, down by $10/mt from the prior week.