Southeast Asian market prices are going down due to a weak scrap generation caused by the mill maintenance season, summer weather, and restrictions to deal with the covid-19 pandemic.
South Korea’s Hyundai Steel, on Thursday, lowered bids for Japanese ferrous scrap by JPY1,500/mt ($13.71/mt) for HMS #2 at JPY45,500/mt ($414/mt), shredded at JPY55,000/mt ($505/mt) and HS (P&S 5ft) at JPY58,500/mt ($532/mt) FOB Japan.
A tight supply of high-grade scrap limited the price cut.
Tokyo Steel has kept its ferrous scrap purchase prices unchanged. Bids for HMS #2 at JPY49,500/mt ($451.39/mt) del Tahara, JPY50,500/mt ($458.54/mt) del Okayama, JPY49,000/mt ($444.92/mt) del Kyushu, and JPY49,000 ($444.92/mt) del Takamatsu.
Demand for heavy scrap like HMS #2 is not so good currently unlike premium scrap which is in good demand. Scrap generation is heard to be limited.
Taiwan’s imported ferrous scrap market is going at a slow pace in terms of demand. The weekly Davis Index for containerized #1 HMS and #1 busheling dropped $10/mt to settle at $440/mt and $470/mt cfr Taiwan.
The index for shredded dropped by $9/mt to $456/mt while the index for P&S 5ft dropped by $10/mt to $462/mt cfr Taiwan, respectively.
The weekly index for HMS 1&2 (80:20) settled at $432/mt cfr Taiwan port, down by $10/mt.
Billets were heard to be offered to Asia at $710/mt, down by $10/mt cfr Asia. The bid got lowered below $700/mt.
Wire rod was heard to be offered at $770/mt, down by $10/mt cfr Asia whereas bid was at $760/mt.
Vietnam is under restrictions in its business hub Ho Chi Minh City and another 18 cities and provinces in the southern region to curb the COVID-19 outbreak. However, the country is gradually coming back. Some mills in the country are heard to be marketed for Japanese and Hong Kong scrap.
The weekly Davis index for containerized #1 HMS, Thursday, dropped by $7/mt to settle at $453/mt cfr Vietnam. The weekly index for shredded dropped by $7/mt to $468/mt while P&S 5ft dropped by $6/mt to$482/mt cfr Vietnam.
The weekly index for #1 bushelling dropped by $7/mt to $485/mt cfr Vietnam port.
The weekly Davis index of HMS 1&2 (80:20) settled at $444/mt cfr Vietnam, down by $6/mt from the prior week.
Offers for billet at $680/mt-$690/mt cfr Manila for September shipment.
The weekly Davis index for P&S 5ft fell by $11/mt to $494/mt cfr Indonesia port. Bids for P&S 5ft at $485-500/mt cfr Indonesia port.
The weekly Davis Index for shredded and #1 busheling dropped by $10/mt each to settle at $487/mt and $507/mt cfr Indonesia.
The partial lockdown in Indonesia got extended due to the improvement in the situation. Ferrous scrap imports are halted as domestic scrap prices are cheaper and therefore preferred.
($1= JPY109.43, TWD 27.75, VND22,920.80, IDR14,339.26)