Prices of containerized imported ferrous scrap fell pressured by limited finished steel demand in South Korea. Many mills have lowered bids in line with the fall in raw material prices in other Asian countries. The weekly Davis Index for containerized HMS 1&2 (80:20), Wednesday, settled at $435/mt cfr South Korea down $5/mt from the prior week. Offers heard at $440/mt cfr.
The weekly Davis Indexes for P&S 5ft and #1 HMS, Wednesday, dropped by $5/mt to $458/mt and $10/mt to $443/mt cfr South Korea, respectively, while the index for shredded remained unchanged at $453/mt from the prior week. Shred prices remained firm this week on rising offers and a global shortage due to lockdowns in European countries. Other grades fell amid lower bids and sluggish finished steel demand.
Deals for Japanese HS heard at JPY49,000/mt cfr and #1 Busheling at JPY49,500/mt cfr on Friday. Bids for Japanese scrap fell by JPY500-1,000/mt this week. Korean mills delayed Japanese scrap bookings due to a rise in offers prices after a deal for 30,000mt #2 HMS was heard at JPY43,000/mt fob Japan on Friday.
Domestic scrap bids increased this week as Korean mills bought local scrap for immediate requirements. The Davis Index for domestic Heavy A, Tuesday, rose KRW15,000/mt ($13.6/mt) to KRW440,000/mt and KRW450,000/mt ($409.6/mt) delivered Incheon and Pohang, respectively. Due to a limited supply of domestic scrap and high offers for imported, traders expect mills to raise bids by KRW15,000/mt this week.
The Davis Index for containerized US-origin HMS 1&2 (80:20), Wednesday, fell by $10/mt from the prior day to $434/mt cfr Taiwan due to sluggish finished steel demand. Many mills resisted high offers and lowered bids to $430/mt cfr. Offers heard at $435-440/mt citing limited supply.
Traders said limited volumes offered by US yards are forcing importers to chase South American scrap. While exports from South America are constrained due to container shortage and higher freight rates.