East Asia’s ferrous scrap prices remained on an uptrend despite limited demand. High raw material prices and recovering demand kept finished steel prices in the Southeast Asia firm. Japanese ferrous scrap prices remained bullish both in the domestic and export markets amid limited supply and strong demand from Vietnamese mills.
Japan’s Tokyo steel announced a second successive price hike for domestic scrap purchase in September. The steelmaker raised the bids for all grades of domestic ferrous scrap as it resumed production post holidays on Monday. Tokyo Steel raised prices for all grades of ferrous scrap by JPY1000/mt ($9/mt) delivered Tahara plant and JPY500/mt delivered Kyushu plant, effective Sep 15. Earlier on Sep 10, the company raised prices only for Tahara plant. The steelmaker had to hike prices following a rise in Japanese scrap export prices.
The purchase prices for #2 HMS will be at JPY27,000/mt ($255/mt) delivered Tahara works. New bids for busheling for deliveries to Tahara and Kyushu plants are at JPY30,000/mt and JPY28,500/mt del plant, respectively. Bids for #2 HMS and busheling are at JPY26,000/mt and JPY28,000/mt delivered Utsunomiya and JPY25,500/mt and JPY26,50/mt delivered Okayama mill, respectively.
In the Kanto region, #2 HMS was offered at JPY27,500-28,500/mt fas port. In the export market, #2 HMS traded last at JPY28,000-29,000/mt fob Japan and equivalent at $310-315/mt cfr Vietnam and HS and shindachi scrap in small bulk cargo was offered at $330-335/mt cfr Vietnam.
The daily index for US-origin containerized HMS 1&2 (80:20) rose by $4/mt to $279/mt cfr Taiwan on Monday. Prices rose amid deals heard at $280/mt despite some bids at $275/mt cfr. Mills are likely to increase US-origin HMS 1&2 (80:20) bookings this week, according to market participants.
Sustained buying in Turkey, despite a dip on Friday to $301.75/mt, and rising bids after the Kanto tender will push offers for imported material higher in the coming days, said traders.
Feng Hsin raises prices
Domestic ferrous scrap prices rose on Monday by $NT300/mt ($10/mt) with Feng hsin raising bids for scrap purchases. The Taiwanese mill also raised prices for billets and rebars by $NT500/mt to $NT13,500/mt and $NT15,000/mt, respectively, to offset input cost.
A shortage of domestic scrap is also adding to the woes of steel mills. Mills are yet to increase production amid sluggish finished demand. Offers for South American HMS 1&2 (80:20) were at $265-270/mt cfr with no trades heard.