Prices of containerised imported ferrous scrap rose amid a global shortage of material as well as empty container boxes. Demand, however, is still under pressure, and mills opted for domestic material, prices for which were lower than imported scrap.
The weekly Davis Index for containerized HMS 1&2 (80:20), Wednesday, settled at $434/mt cfr South Korea, up by $59/mt, with few deals heard at $435/mt cfr. Offers rose to $445/mt cfr, up $60-70/mt from the week prior.
The weekly Davis Indexes for P&S 5ft, #1 HMS, and shredded rose by $58/mt, $60/mt, and $60/mt to $459/mt, $443/mt, and $450/mt cfr South Korea, respectively. In the bulk market, Russian A3 was offered at $479/mt cfr.
South American suppliers offered HMS 1&2 (80:20)in TEU at $420-425/mt cfr South Korea on Wednesday with bids at $410-415/mt.
Unable to gauge the price direction, some South Korean mills were undecided on bid levels. They are, therefore, closely watching Turkish ferrous scrap trends and Japanese domestic offers to assess the scenario. Domestic scrap bids increased this week as Korean mills may buy locally for immediate requirements.
The Davis Index for containerized US-origin HMS 1&2 (80:20), Wednesday, rose $2/mt from the prior day to $435/mt cfr Taiwan. Offers rose to $440-450/mt cfr with few deals heard at $435/mt cfr. Many mills held their bid at $420/mt resisting high offers. Traders indicated that by the time mills chase an offer, it rises further due to which limited deals are getting confirmed. They further added that due to holidays in the coming weeks, most yards with limited inventories are holding back on offers as they expect prices to rise in January.
In bulk, few deals were heard for the Japanese #1 busheling and HS at $485-488/mt cfr Taiwan.