Containerized imported ferrous scrap prices increased this week amid rising offers, short supply of scrap and unavailability of empty containers in most exporting countries. Mills stayed away from containerised purchases and preferred negotiating for bulks from Japan and the US.
A few buyers raised bids to secure material in anticipation of a further rise next week but offers rose further leading to no deal. Many steel mills in East Asia have resumed buying post annual maintenance but are cautious of rising offers. Limited deals heard this week.
The weekly Davis Index for containerized HMS 1&2 (80:20), Wednesday, rose by $14/mt from the prior week to settle at $433/mt cfr South Korea. Bids rose by $15-20/mt to 425-430/mt cfr, while offers rose to $435-440/mt. Early in the week, deals heard at $425-430/mt cfr but mills backed out as offers rose.
The weekly Davis Indexes for P&S 5ft and #1 HMS, Wednesday, rose by $20/mt and $12/mt to $465/mt and $440/mt cfr South Korea, respectively. The index for shredded rose by $18/mt to $453/mt from the prior week.
South Korean steel mills raised bids by JPY2,000/mt to JPY42,500/mt ($397/mt) fob, while offers rose to JPY43,000/mt amid rising domestic scrap prices. With higher purchases by Turkish mills on the back improving steel demand, and rising Chinese bids for Japanese HS, South Korean mills are cautious of rising offers and have limited purchases this week, said traders.
Offers for Russian 3A scrap rose to $460/mt cfr, up by $5-10/mt from week prior at $450-455/mt cfr.
The Davis Index for domestic Heavy A rose by KRW13,750/mt ($12/mt) to KRW423,750/mt ($376.8/mt) and KRW20,000/mt to KRW415,000/mt delivered Incheon and Pohang, respectively. Mills have raised bids for domestic scrap as yards refused to sell at lower prices on firm global ferrous scrap demand, said traders.
Bids for Heavy A from Hyundai at KRW420,000-425,000/mt delivered Incheon from the prior week. Most mills are expected to refill inventories, while offers are expected to rise on tight domestic supplies.
Exporters raised offers by $5/mt to $440/mt cfr in anticipation of a further rise in ferrous scrap prices globally. Rising finished steel demand and scrap shortage are driving offer prices higher. The Davis Index for containerized US-origin HMS 1&2 (80:20) rose by $6/mt to $435/mt cfr on Wednesday from the prior day. Bids rose to $430-435/mt Wednesday as mills remained cautious.
Traders indicated that most mills are active post-holidays and negotiating for South American and US containerised scrap. Mills are also tracking Japanese exports to South Korea and China to gauge imported scrap price direction.