Imported ferrous scrap prices in Southeast Asian markets continued to increase driven by 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. Demand in Southeast Asia remains sluggish. Thus the disparity between the bids and offers grew. Suppliers, however, could still hold on to their offers supported by global prices.  

 

Japan

Japanese ferrous scrap export prices rose on Thursday. The monthly Kanto Tetsugen concluded on June 10 with the average of winning bids higher than in May. Trades of Japanese bulk cargoes of HMS 1&2 (50:50) and #2 HMS with South Korean mills concluded at JPY25,500/mt fob Japan or JPY26,000/mt fob Japan, up by JPY1,500-2,000/mt from the prior week.

Domestic ferrous scrap prices also remained on an uptrend this week. Tokyo Steel raised scrap purchase prices eight times since May 22. Effective June 11, #2 HMS prices delivered to Utsunomiya plant was at JPY25,500/mt.

 

Taiwan

Imported ferrous scrap prices in Taiwan rose marginally on Thursday. Thin trades were heard.

The Davis Index for containerised US-origin HMS 1&2 (80:20) was at $245/mt cfr Taiwan on Thursday up by $1/mt from Wednesday and by $6/mt from the week prior. Australian-origin HMS 1&2 (70:30) was sold at $240/mt cfr Taiwan. 

A few trades for US-origin HMS 1&2 (80:20) were heard at $244-245/mt cfr Taiwan. Offers for US-origin HMS 1&2 (80:20) were at $245-250/mt cfr Taiwan.

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. 

Bids for South American-origin HMS 1&2 (80:20) were at $235-240/mt cfr Taichung.

The Davis Index for containerised shredded settled at $257/mt cfr Taiwan, up by $9/mt from last Thursday. Offers were heard at $260/mt cfr Taiwan.

The index for #1 HMS settled at $250/mt, up by $5/mt from the week prior. No trades were heard for P&S 5ft and its index settled at $263/mt cfr. Offers were at $263-255/mt cfr Taichung on Thursday, up by $10-12/mt from the prior week.

In small bulk markets, trades for Japanese HMS 1&2 (50:50) were at $265-270/mt cfr Taiwan on Thursday, though offers were $270-275/mt cfr Taiwan. Offers for busheling were at $290-295/mt cfr Taiwan.

 

Vietnam

Mills slowed their ferrous scrap purchases due to a rise in prices. Japanese #2 HMS traded at $280/mt cfr Vietnam.

Few bookings of shredded were heard at $260-265/mt cfr Vietnam with its index settling at $263/mt cfr Vietnam, up by $5/mt from the prior week. Offers from US suppliers moved up due to increased bookings by mills in Turkey.

The Davis Index for containerized #1 HMS settled at $255/mt cfr Vietnam, up by $7/mt from the prior week. Offers for US-origin #1 HMS were at $260/mt cfr with no trades heard.

US-origin HMS 1&2 (80:20) in TEUs was offered at $255/mt cfr Haiphong, with its index settling at $250/mt cfr, up by $5/mt from last week. No major trades heard. The index for P&S scrap in FEUs settled at $268/mt cfr Haiphong, up by $2/mt with offers at $270-272/mt cfr.

In small bulk markets, Japanese HMS 1&2 (50:50) traded at $270-275/mt cfr South Vietnam and Hong Kong origin #1 HMS at $280/mt cfr North Vietnam. Offers for busheling in bulk were at $290-295/mt cfr Vietnam, with a deal reported at $293/mt cfr Vietnam.

 

Indonesia

Imported ferrous scrap trades were limited amid bullish prices and low steel demand. A few offers for HMS 1&2 (80:20) were at $255/mt cfr Indonesia with its index settling at $250/mt cfr, up by $12/mt from the prior week.

The weekly index for busheling settled at $281/mt cfr Jakarta, up by $8/mt. A few deals were heard for the scrap grade at $280-287/mt cfr Jakarta. Offers from the US, Singapore and Malaysia were at $290-295/mt cfr Jakarta. 

The index for P&S 5ft scrap settled at $275/mt cfr, up by $10/mt. Offers for the grade were at $270-280/mt cfr Jakarta with bids heard at $265/mt cfr Jakarta. 

US-origin shredded in FEUs was offered at $270/mt cfr Jakarta, up by $10/mt from the week prior. The weekly Davis Index for shredded settled at $268/mt cfr Indonesia up $10/mt from the prior week. 

Australian shredded in TEU’s was offered at $260/mt cfr Jakarta with bids at $250/mt cfr Jakarta.

 

($1=JPY107.13;VND23,221.53; NTD29.62)

 

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