Ferrous scrap prices in Southeast Asian markets are dropping because of scheduled mill maintenance, summer seasonality, and restrictions impose to control the COVID-19 pandemic.
Tokyo Steel kept its ferrous scrap purchase prices unchanged. Bids for HMS #2 are at JPY49,500/mt ($451.39/mt) del Tahara, JPY50,500/mt ($458.54/mt) del Okayama, JPY49,000/mt ($444.92/mt) del Kyushu, and JPY49,000 ($444.92/mt) del Takamatsu.
The market is expected to be largely quiet for a while with fewer inquiries from overseas buyers until the end of Obon holidays. Kanto tender will take place on August 19 which most market participants are going to rely on for a sense of direction.
Prices are dropping for Taiwan’s imported ferrous scrap. The weekly Davis Index for containerized #1 HMS dropped $13/mt to settle at $435/mt while #1 busheling dropped by $5/mt to $465/mt cfr Taiwan.
The index for shredded dropped by $5/mt to $451/mt while the index for P&S 5ft dropped by $5/mt to $457/mt cfr Taiwan, respectively.
The weekly index for HMS 1&2 (80:20) settled at $427/mt cfr Taiwan port, down by $5/mt.
Vietnam is still under restrictions to curb the spread of COVID-19. The weekly Davis index for containerized #1 HMS, Thursday, dropped by $5/mt, to settle at $448/mt cfr Vietnam. The weekly index for shredded dropped by $6/mt to $462/mt while P&S 5ft dropped by $12/mt to $470/mt cfr Vietnam.
The weekly index for #1 bushelling dropped by $7/mt to $478/mt cfr Vietnam port.
The weekly Davis index of HMS 1&2 (80:20) settled at $438/mt cfr Vietnam, down by $6/mt from the prior week.
The weekly Davis index for P&S 5ft fell by $14/mt to $480/mt cfr Indonesia port. Bids for P&S 5ft at $465-475/mt cfr Indonesia port.
The weekly Davis Index for shredded and busheling fell by $12/mt each to settle at $475/mt and $495/mt cfr Indonesia.
The partial lockdown in Indonesia is extended for one more week. Domestic scrap prices are still cheaper and therefore preferred.
Deals were heard at $500/mt for P&S 5ft container cfr Indonesia from Hong Kong.
($1= JPY110.45, TWD 27.80, VND22,766.03, IDR14,361.44)