Imported ferrous scrap offers in East Asian markets are bullish amid strong demand and tight supply.
Steel inventories in China hit a three month’s low and steel futures continued to recovery pushing for iron ore ferrous content 62pc above $212/mt cfr China on Thursday. Domestic billet rose by CNY20/mt from Wednesday to CNY4,980/mt ex-Tangshan inclusive of 13pc VAT.
South Korea’s Hyundai Steel revised bids for Japanese small bulk cargoes by JPY1,000/mt ($9.13/mt) following the Kanto tender on Wednesday. Also, firm domestic demand from Japanese mini-mills pressurized the steelmaker to raise bids.
Revised bids for #2 HMS are at JPY47,000/mt ($429.29/mt) fob Japan, H1:H2 at JPY47,500/mt fob, shredded at JPY51,000/mt fob, P&S (HS) at JPY52,000/mt fob and busheling (shindachi) at JPY53,000/mt fob Japan, up by JPY1,000/mt.
One deep-sea cargo from the US West Coast heard at $515/mt cfr Korea.
Domestic scrap prices are slowly picking up, though not many deals were heard.
The Davis Index for containerized #1 HMS Thursday jumped up by $7/mt from the prior week to $453/mt cfr Taiwan whereas the index for shredded rose $6/mt to $466/mt cfr Taiwan on Thursday.
The indexes for P&S 5ft and #1 bushelling rose by $3/mt and $5/mt to $473/mt and $481/mt cfr Taiwan, respectively, on Thursday.
The index for HMS 1&2 (80:20) is at $446/mt cfr Taiwan port, up by $2mt.
The Davis index for containerized #1 HMS, Thursday, reached $463/mt cfr Vietnam, up by $1/mt from the prior week. On a weekly basis, shredded, P&S 5ft, and #1 bushelling indexes rose to $476/mt, $483/mt, and $491/mt, up by $6/mt, $2/mt and $5/mt respectively.
Offers for US-origin HMS 1&2 (80:20) dipped to $450-455/mt cfr Vietnam on weak demand that has continued since the last three weeks. Mills are refusing high offers and some are on the lookout for a significant drop in prices.
The Davis index for P&S 5ft is stable at $510/mt cfr Jakarta Indonesian port. Bid for P&S 5ft heard at $500/mt.
The Davis Index for shredded, #1 busheling stable at $505/mt and $520/mt cfr Indonesia port, respectively. Trades for HMS 1&2 (80:20) in containers heard at $490/mt cfr Indonesia.
Tokyo Steel has kept its ferrous scrap purchase bids unchanged since May 18. The bids for #2 HMS at JYP51,500/mt delivered Tahara works, JYP50,000/mt delivered Okayama, JPY50,000 delivered Kyushu, JPY48,000/mt delivered Utsunomiya, and JPY48,500/mt delivered Takamatsu.
($1= JPY104.68, TWD27.67, VND22,999.77, IDR14,268.65)