Containerized imported ferrous scrap prices increased amid rising offers supported by scrap and container shortage in most exporting countries. Mills stayed away from purchases this week on account of Lunar New Year holidays. A few buyers raised bids to secure material in anticipation of a further rise next week. Many steel mills in East Asia are under annual maintenance and expected to resume scrap buying post-holidays.
The weekly Davis Index for containerized HMS 1&2 (80:20), Wednesday, rose $5/mt from the prior week to settle at $368/mt cfr South Korea. Bids were flat at 360-365/mt cfr, while offers heard at $375/mt. No deals heard amid Lunar New Year festivities.
The weekly Davis Indexes for P&S 5ft and #1 HMS, Wednesday, rose by $3/mt and $1/mt to $394/mt and $376/mt cfr South Korea, respectively. The index for shredded rose by $3/mt to $383/mt from the prior week. Hyundai booked 15,000mt of #1 HMS from New Zealand at $391/mt before the holidays for March shipment amid rising Japanese offers.
Traders anticipate a further rise in Japanese export prices after Kanto and Kansai Tender. With higher purchases by Turkish mills on the back of rising finished steel demand, the Turkish index rose $4/mt on Tuesday from Friday.
Offers for Japanese #2 HMS rose to JPY41,000-42,000/mt fob ($386-396/mt) up by JPY1,000-2,000/mt fob from the prior week post-Kansai tender. Most mills in Korea are cautious and waiting for cues from the Chinese market post-holidays.
The Davis Index for domestic Heavy A fell by KRW5,000/mt ($4.5/mt) and KRW10,000/mt to KRW400,000/mt ($361.4/mt) and KRW385,000/mt delivered Incheon and Pohang. Mills limited purchase for domestic scrap amid scheduled maintenance, said traders.
Exporters raised offers by $5/mt to $375-380/mt in anticipation of a further rise in ferrous scrap prices globally due to rising finished steel demand and scrap shortage. The Davis Index for containerized US-origin HMS 1&2 (80:20) rose by $1/mt to $371/mt cfr on Wednesday from the prior day. Bids remained flat at $365/mt on Wednesday with mills cautious of rising offers.
Traders indicated that most mills are under maintenance and will be back in the market post-holidays. Mills are tracking Japanese export and South Korean import price trends to gauge price direction post-Kanto and Kansai Tender.