Imported ferrous scrap prices in Taiwan and Vietnam rebound this week driven by bullish global scrap prices. Buying activity by mills increased in the week. After a quiet last week, mills have started stocking raw material.
Taiwan
Mills refilled ferrous scrap inventories this week and several trades were reported. Prices were also driven by the rising global and Japanese scrap prices.
The weekly Davis Index for containerised US-origin HMS 1&2(80:20) settled at $238/mt cfr Taiwan on Thursday, up by $21/mt. Containerised HMS 1&2 (80:20) traded at $225-230/mt cfr Taiwan late last week and early this week. Prices rose further to $235/mt cfr on Wednesday and $240/mt cfr Taiwan on Thursday.
Japanese H1: H2 in small bulk cargoes was offered in the range $250-255/mt cfr Taiwan, up by $20-25/mt from the prior week. Mills bid at $245-247/mt cfr Taiwan.
Japanese yards offered Busheling in bulk at $265/mt cfr Taiwan, with no takers at those levels. The Davis Index for containerised Busheling settled at $258/mt cfr Taiwan.
Vietnam
Vietnamese mills preferred cheaper Japanese ferrous scrap over the US, UK, Europe origin material. Few mills were waiting for Chinese steel exports to resume before ramping up their production to fill the void in seaborne markets.
The weekly index for containerized HMS 1&2 (80:20) rose to $245/mt cfr Vietnam, up by $10/mt. Trades of US origin West coast origin containerised HMS 1&2 (80:20) were at $245/mt cfr Vietnam.
HMS 1&2 (80:20) in bulk cargoes was offered at $285-290/mt cfr Vietnam, up by $10/mt from the prior week, with no takers.
Mills in northern Vietnam booked Japanese #2 HMS at $252-255/mt cfr North Vietnam, up by $10-15/mt from the prior reported trades.
Japanese shredded in small bulk was offered at $265/mt cfr North Vietnam.
Japanese #2 HMS in bulk cargoes were offered in the range of $260-265/mt cfr Vietnam, up by $10/mt from the prior week.
Mills in the southern region were offered Hong Kong origin HMS 1&2 (50:50) at $255/mt cfr Vietnam, up by $10/mt from the prior week.
The Davis Index for US origin P&S 5ft settled at $268/mt cfr Vietnam.
Japan
Japanese ferrous scrap prices surged on Thursday fuelled by higher Osaka tender prices. The tender concluded on Thursday. In the first winning bid, 3,000mt #2 HMS traded at JPY23,500/mt fas Japan, up from JPY22,750/mt fas Tokyo levels in Kanto’s monthly scrap export tender. Market participants are unsure of the bullishness in Japanese origin export prices sustaining in the near term, as finished steel demand remains weak.
Indonesia
Indonesian mills fear that the shutdown related to coronavirus in China will hurt global steel prices. With a delay in infrastructure and other projects in China, finished steel inventories at plants were up by 94pc in early Feb 2020 from the prior-year period according to Chinese Metal Society estimates.
The Davis Index for containerized P&S 5ft settled at $294/mt cfr Jakarta, up by $6/mt from the prior week. No major trades for P&S were reported as demand remained subdued this week.
The weekly index for Busheling settled at $304/mt cfr Jakarta, up by $8/mt. Bids were at $300/mt cfr Jakarta. Traders were reluctant to match these bids on the back of rising ferrous scrap prices and higher realisation from India and Pakistan.
The Davis Index for containerised shredded settled at $289/mt cfr Jakarta, up by $12/mt from the prior week. Shredded was offered at $300/mt cfr Jakarta, but buyers’ bids were in the range $275-280/mt cfr.
The index for HMS 1&2 (80:20) settled at $258/mt cfr Jakarta, up by $10/mt from the prior week.