Domestic ferrous scrap prices rose in most Asian markets. Domestic scrap suppliers raised their offers following a rise in imported ferrous scrap. Though, if the steel demand fails to gain momentum, prices could drop in the near term.
Taiwan’s domestic ferrous scrap prices increased from the prior week. Suppliers held offers at a higher level amid a rise in import prices and tight scrap supply. The weekly Davis Index for domestic HMS 1&2 (80:20) in south Taiwan settled at NT$6,900/mt ($231/mt) del plant, up by NT$100/mt from the prior week.
The weekly index for HMS 1&2 (80:20) in North Taiwan settled at NT$7,300/mt del plant, up by NT$150/mt from the prior week.
In South Taiwan, Feng Hsin Steel held domestic ferrous scrap purchase prices for HMS 1&2 (80:20) flat at NT$6,600/mt delivered Taichung plant. The steelmaker’s rebar base offers were also unchanged. In seaborne trades, US-origin containerised HMS 1&2 (80:20) traded in the range $228-230/mt cfr Taiwan, unchanged from late last week. A forecast of rain for 10 successive days and power cuts announced by the Taiwan government in June would keep the demand for scrap subdued.
Japan’s domestic ferrous scrap prices remained flat. Tokyo Steel announced production cuts due to weakened demand and kept scrap purchase prices unchanged. Bids have remained flat at Tahara, Okayama and Takamatsu steel centre effective April 28. Bids for #2 HMS were at JPY18,500/ mt delivered Utsunomiya in Kanto region and JPY17,500/mt delivered Kyushu plant. Bids for busheling scrap at Tahara and Utsunomiya were at JPY20,500/mt fob Japan.
However, Japanese ferrous scrap export prices moved up further to JPY23,000-23,500/mt fob Japan.
South Korean domestic ferrous scrap prices rose by KRW10,000/mt from the prior week. Major mills have been booking imported scrap from Japan and Australia since the past week on falling inventories.
The weekly Davis Index for domestic Heavy A settled at KRW290,000/mt ($237/mt) del Incheon, up by KRW10,000/mt. The Davis Index for Heavy A settled at KRW280,000/ mt del Pohang, also up by KRW10,000/mt from the prior Tuesday. The weekly Davis Index for domestic Light A settled at KRW250,000/mt delivered Pohang plant, up by KRW10,000/mt.
The weekly Davis Index for HMS 1&2 (80:20) settled at VND6,000,000/mt ($257/mt) delivered South Vietnam inclusive of taxes, up by VND200,000/mt from the prior week. Japanese HMS 1&2 (50:50) traded at $255/mt cfr North Vietnam and shredded scrap in small bulk cargoes at $275-278/mt cfr Vietnam, up by $5-10/mt from the prior week.
Chinese domestic ferrous scrap prices rose on increased steel prices in the country.
Shagang Steel headquartered in Zhangjiagang, east China’s Jiangsu province, increased bids for domestic #2 HMS (6-10mm thickness) by CNY80/mt on Tuesday to CNY2,520/mt del Jiangsu plant inclusive of the 13pc VAT. Ferrous scrap prices in China rose on the back of supply crunch and supportive profit margins of EAF steelmakers in the country.
The weekly Davis Index for domestic HMS 1&2 (80:20) settled flat at CNY2,600/mt ($332/mt), up CNY50/mt inclusive of 13pc vat delivered to mill in eastern China, rising four months high.
Thailand’s domestic scrap prices rose on the back of increased demand in the country. The weekly Davis Index for domestic HMS 1&2 (80:20) settled at THB7750/mt ($243/mt) delivered Rayong inclusive of taxes, up by THB50/mt.
The weekly Davis Index for domestic HMS 1&2 (80:20) settled at MYR900/mt ($205/mt) delivered western mills, up by MYR5/mt and the index for HMS 1&2 (80:20) delivered eastern mills settled at MYR935/mt inclusive of taxes, up by $10/mt from the prior week. US-origin HMS 1&2 (80:20) traded at $220-225/mt cfr Port Klang and P&S scrap was offered at $250/mt cnf port Klang with no trades concluded.
($1= JPY107.6; TWD29.93; CNY7.11; THB31.89; MYR4.31; VND23,335.5; KRW1,225.65)