Domestic ferrous scrap prices in Asia slid for the third week in a row. The Chinese New Year holidays ensured any chance for a recovery has been put on hold. Low global ferrous prices kept domestic scrap prices down by upto $10/mt, from the prior week.
The only silver lining on the current ferrous-scrap cloud is phase one of the trade deal agreement between China and the US was agreed on by the two metal superpowers on Monday.
Taiwan
The weekly Davis Index for domestic HMS 1&2 (80:20) delivered South Taiwan dropped to NT$7600/mt ($253/mt), down by TWD400/mt from the week prior.
The weekly index for HMS 1&2 (80:20) delivered North Taiwan settled at NT$7,800/mt plant, down NT$400/mt from the prior week.
Feng Hsin Steel’s scrap and rebar prices fell by another NT$200/mt from the week prior on Monday.
The company’s purchase price of domestic HMS 1&2 (80:20) delivered Taichung plant, dropped to NT$7,500/mt, and grade 40 rebar prices, including local taxes, were at NT$14,800/mt ex-producer plant.
Other steel mills offered rebar at NT$14,700-15,000/mt ex-plants.
Bids for imported ferrous scrap also dropped for the second week running. In the last two days, US-origin containerised HMS 1&2 (80:20) sold at $252-255/mt cfr Taiwan, down from the $260-262/mt cfr Taiwan price levels seen in the second half of last week.
Japanese origin HMS1&2 (50:50) scrap traded in the $250-255/mt range cfr Taiwan.
South Korea
Domestic ferrous scrap prices in South Korea fell by KRW5,000-10,000/mt delivered to mills.
Major steelmakers like Hyundai Steel, Dongkuk Steel, and Korea Steel announced price cuts on higher scrap inventories in hand and low global scrap prices.
The weekly Davis Index for domestic Heavy A settled at KRW288,750/mt ($248/mt) delivered Incheon plant, down by KRW7,500/mt from the prior week.
The index for the same grade settled at KRW277,500/mt del Pohang plant, down by KRW6250/mt from a week earlier.
The weekly index for domestic Light A settled at KRW261,250/mt delivered Pohang plant, down by KRW6250/mt from the prior week.
Vietnam
The Davis Index for HMS 1&2 (80:20) settled at VND6,175,00/mt ($266/mt) inclusive of taxes delivered South Vietnam on Tuesday, down by VND200,000/mt from a week earlier.
The Japanese scrap market is at a standstill so Vietnam steelmakers are waiting to book new orders post the Chinese New Year holidays.
Steel mills in Taiwan and Vietnam are likely to undertake maintenance activities because of the down time.
Vietnamese steel mills offered billets to Taiwanese mills at $440-445/mt cfr.
HMS 1&2 (80:20) in bulk was offered at $300/mt cfr Vietnam, but no buyer was interested given the possibility of a further correction.
Minor deals were reported, with Japanese H2 traded at $280/mt cfr Vietnam.
China
Chinese domestic scrap prices fell amid low buying interest from major steelmakers. The weekly Davis Index for domestic HMS 1&2 (80:20) China settled at CNY2,625/mt ($380/mt) inclusive of 13pc VAT delivered to mill, down by CNY50/mt ($7/mt) from the prior week.
Traders are on holiday and the impact of recent changes in country’s nomenclature for nonferrous scrap, as of July 1, is not yet fully understood.
Malaysia
The Davis Index for domestic HMS 1&2 (80:20) dropped to MYR960/mt ($239/mt) delivered Klang region, from MYR975/mt a week ago.
The Davis Index for HMS 1&2 (80:20) delivered to Kuantan region settled at MYR1,125/mt ex-works, down by MYR30/mt from the prior week.
Thailand
The Davis Index for domestic HMS 1&2 (80:20) delivered Rayong rose to THB9,183/mt ($302/mt), from THB8,950/mt, in the prior week inclusive of taxes.
Steel mills with limited scrap inventories in hand are now interested in restocking, driving prices higher this week, said a trader.
Southeast Asia
Imported shredded scrap bids from India and Pakistan steel mills fell by $10/mt to $300-305/mt cfr from the last week close.
Dubai-origin HMS 1 sold at $300/mt cfr Nhava Sheva.
($1=NT30.00, CNY6.9, THB30.38, MYR4.073 VND23172.5, KRW1,165.83)