Limited containerised bookings heard from South Korean mills due to shortage of containers at the USWC and a preference for bulk cargoes. Leading steelmakers actively bought Japanese scrap this week. Trades for #1 busheling (Shindachi) heard at JPY52,000/mt ($477/mt) cfr and for #2 HMS at JPY47,000/mt cfr. Traders said mills could raise bids for Japanese scrap post high bids placed for Kansai tender. The winning bid for #2 HMS at Kansai tender was JPY42,960/mt fas.
South Korean importers are closely watching Turkish and Chinese purchases. With freights rising, most traders expect Korean importers to raise bids to compete with other Asian buyers. Many traders indicated that freight rates might go up further due to container shortages and vessel congestion at many ports.
US-based exporters are worried about supplying containerised scrap on schedule due to a shortage of empty containers. Amid rising freight rates, suppliers are pinning their hopes on elevated scrap prices.
The Davis Index for containerized HMS 1&2 (80:20), Wednesday, rose by $8/mt from the prior week to settle at $429/mt cfr South Korea with few deals heard. Bids rose by $10-15/mt to $425/mt cfr South Korea, with offers rising to $430-435/mt. Traders indicated that offers for Taiwan and South Korea were similar due to supply constraints and higher freight rates.
The Davis Indexes for P&S 5ft and #1 HMS, Wednesday, rose by $7/mt and $9/mt from prior Wednesday to $461/mt and $435/mt cfr South Korea, respectively. The index for shredded rose by $6/mt to $440/mt from the prior week.
The weekly Davis Index for domestic Heavy A settled unchanged at KRW435,000/mt ($387/mt) and KRW455,000/mt delivered Incheon and Pohang, respectively. Mills are expected to raise bids next week on low inventory, said traders.
Taiwanese mills raised bids amid rising global scrap prices. The Davis Index for containerized US-origin HMS 1&2 (80:20), Wednesday, rose by $3/mt to $432/mt cfr Taiwan from Tuesday. Offers rose $10-15/mt to $435-440/mt cfr. Fewer deals concluded at $430-432/mt cfr as bids chased offers that kept rising on tight supply.
Mills are cautious and tracking Japanese exports post-Kanto and Kansai tenders. Offers for HMS 1 and 2(50:50) rose by $5/mt to $460/mt cfr on Wednesday.