Imported ferrous scrap prices in Southeast Asian markets skid on global cues. Scrap prices snapped their uptrend of the past three weeks as demand slowed on hopes of further discounts.
Japanese ferrous scrap export prices dropped by JPY2000-2500/mt from the prior week. Japanese #2 HMS in small bulk was sold at JPY24,000/mt fob Japan to a major South Korean mill on Wednesday. Trades closed at JPY25,000-25,500/mt early this week, however, bids on Thursday dropped to JPY23,000-23,500/mt fob Japan.
Trades for Busheling scrap in small bulk cargoes were reported at $278-280/mt cfr North Vietnam early this week, but prices dropped to $275/mt cfr North Vietnam on Thursday, down $15-20/mt from the prior week. Japanese HMS 1&2 (80:20) traded at $265-268/mt cfr Vietnam, down $10-15/mt from the prior week.
Imported scrap prices in Taiwan dropped down as importers booked less scrap. The daily Davis Index for containerised US-origin HMS 1&2 (80:20) fell by $1/mt to $242/mt cfr Taiwan on Thursday, while it fell by $13/mt from the prior week. Few deals were heard at $240-245/mt cfr for US-origin HMS 1&2 (80:20). Demand for finished steel is decreasing in Taiwan, which is normal in summers, said sources. Buyers are looking for offers from other regions to reduce their raw material costs.
The weekly Davis index for containerised shredded settled at $252/mt cfr Taiwan, down by $7/mt from last Thursday. Few deals were heard at $250-253/mt cfr Taiwan. Deals were also heard for US origin #1 HMS at $250/mt and South American origin #1 HMS at $245/mt cfr Taiwan with the index settling at $250/mt, down by $9/mt from the prior week.
P&S 5 ft weekly index settled at $258/mt cfr Taichung with no major trades heard. Trades were heard for #1 busheling at $260/mt cfr with the index falling by $8/mt on Thursday.
Buyers are expecting a further correction in the market as Turkish mills reduced buying prices on Wednesday. Turkish bulk HMS 1&2 (80:20) index settled at $256.5/mt cfr, down by $7/mt from last Thursday.
In small bulk markets, Japanese HMS 1&2 (50:50) was offered at $255-260/mt cfr Taiwan and Shindachi offers were at $280-285/mt cfr Taiwan. Japanese bulk shredded deal was heard at $272-273/mt cfr Taiwan.
Vietnamese mills booked limited scrap as they awaited further correction in prices in line with the global markets. In bulk markets, US-origin HMS 1&2 was offered at $270-275/mt cfr Vietnam, down $10/mt from the prior week, trades were reported at these levels.
In containers markets, a few bookings of #1busheling and P&S 5ft were heard at $275-280/mt and $265-270/mt cfr Vietnam respectively. Indices for #1 busheling and P&S 5ft settled down by $7/mt and $9/mt to $275/mt and $265/mt cfr Vietnam, respectively.
The weekly Davis Index for US origin shredded and HMS 1&2 (80:20) fell by $10/mt from the week prior and settled at $258/mt cfr and $245/mt cfr Haiphong, respectively.
Southeast Asian billet prices dropped by $5-10/mt following the cooling of Chinese demand. Traders are expecting a further drop in bids due to sluggish demand in summer months.
In small bulk markets, Japanese HMS 1&2 (50:50) traded at $260-265/mt cfr South Vietnam and Hong Kong origin grade at $260/mt cfr North Vietnam. Offers for HS grade in bulk were at $285-290/mt cfr Vietnam, down $10/mt from the prior week.
Like other South Asian countries, Indonesian ferrous scrap prices fell amid sluggish demand for finished steel and dampened global cues. The new regulations set for scrap importers and limited clarity on the same has led importers to hold their cargo bookings.
Few deals in containers for HMS 1&2 (80:20) were at $240/mt cfr Jakarta. Importers are expecting bookings at even lower rates of $240/mt cfr next week. The weekly Davis Index settled at $244/mt cfr Jakarta, down by $10/mt from the prior week.
The weekly index for US origin shredded and #1 HMS scrap settled at $260/mt and $255/mt cfr Jakarta, both down by $8/mt from the week prior. Offers from US suppliers dropped due to a decrease in bookings by Turkish mills, while Japan reduced domestic and export scrap prices. Traders are expecting ferrous scrap prices to soften further as Turkish mills dropped buying prices. Turkish bulk HMS 1&2 (80:20) index settled at $256.5/mt cfr, down by $7/mt from last Thursday.
Few trades of US-origin P&S 5ft TEUs were heard at $265-$270/mt cfr Jakarta while trades for #1 busheling were heard at $275/mt cfr with weekly indexes settling at $269/mt cfr and $275/mt cfr Jakarta, respectively, both down by $9/mt.
Traders expect the scrap prices to drift down further as many manufacturers have decided to stop buying till demand for finished steel improves.
In the containers market, HMS 1&2 (80:20) was offered at $235-240/mt cfr Malaysia. Offers for US-origin shredded in TEU’s were at $260-262/mt cfr Malaysia while bids at $255/mt cfr Malaysia.
In the containers market, HMS 1&2 (80:20) in FEU’s was offered at $240/mt cfr Thailand. Few Central American-origin TEU’s traded at $230-235/mt cfr Thailand while bids for HMS 1&2 (60:40) were at $220/mt cfr Thailand. Finished steel demand is very weak in Thailand to the adverse impact of the COVID-19 pandemic.
($1=JPY107.22; VND23,265.49; NTD29.52)