Most Asian mills kept bids unchanged while offers rose on low export availability from Japan. The weekly index for #2 HMS, Wednesday, rose JPY1,375/mt to JPY44,500/mt ($408/mt) fob. On fas basis, the index rose by JPY1,833/mt ($17/mt) post-Kansai tender to JPY43,250/mt ($397/mt) fas.
Tokyo Steel raised ferrous scrap bids by JPY500-1,000/mt ($4.48-9.17/mt) for the second time this week. Strong domestic demand in Japan has reduced offers to the seaborne market and prices rose with importers competing for a limited volume of Japanese scrap.
Increased inquiries from China and other Asian countries could lift offers further, expect traders. The index for P&S 5ft (small bulk) China port settled at $498/mt cfr, up by $2/mt from the prior week on rising offers. Offers for P&S rose $500-505/mt cfr China while bids remained at $495/mt cfr on Wednesday. Chinese buyers booked Russian scrap at $445/mt and Japanese #2 HMS at CNY43,000/mt cfr China.
Offers for Japanese #1 busheling (Shindachi) rose JPY 5500/mt fob, due to a shortage of scrap and strong global cues. The weekly index for the grade rose JPY250/mt to JPY48,625/mt fob Japan, while on fas basis, the index rose by JPY1,000/mt to JPY47,250/mt fas.
The weekly Davis indexes for shredded and HS, Wednesday, settled at JPY48,500/mt and JPY48,750/mt fas Japan, up by JPY2,042/mt and JPY1,659/mt, respectively amid limited trades.
Offers for HMS 1&2 (50:50), Wednesday, rose to $470/mt cfr Vietnam, up by $5/mt from the prior week with the index for the grade settling at $ 468/mt cfr Haiphong, up $4/mt on limited availability and higher offers from Japan.
The index for Japanese HMS 1&2 (50:50) rose $3/mt to $458/mt cfr Taiwan. Traders said prices are supported by rising Japanese scrap offers and Chinese steel futures. Most offers remained unchanged from last week at $460/mt cfr.
The Davis Index for containerized HMS 1&2 (80:20), Wednesday, declined $3/mt from the prior week to settle at $426/mt cfr South Korea with few deals heard. Bids weakened to $420-425/mt cfr South Korea, while offers fell to $430/mt cfr.
The Davis indexes for P&S 5ft, Wednesday, fell $10/mt to $451/mt cfr South Korea, while #1 HMS was unchanged at $435/mt cfr South Korea from the prior week.
Traders decided to wait amid a rise in Japanese scrap offers this week. Offers for #2 HMS rose JPY1,500-2,000/mt to JPY43,000-43,500/mt fas from week prior. With Tokyo steel increasing scrap purchase volumes as well as price, market participants expect South Korean mills to focus on deep-sea cargo.
A deal for Russian A3 heard at $445/mt cfr on prior Thursday and #2 HMS sold at JPY43,000/mt fob. No deals heard this week.
Taiwanese mills raised bids amid rising global scrap prices. The Davis Index for containerized US-origin HMS 1&2 (80:20), Wednesday, declined $3/mt to $428/mt cfr Taiwan from Tuesday with offers unchanged at $430/mt cfr. Few deals concluded at $428/mt cfr.