A shortage of domestic scrap in Japan and a rise in global scrap prices prompted exporters to raise offers this week by JPY1,000-1,500/mt ($9-14/mt). Export deals were limited as bids lagged.
Tokyo steel raised bids effective March 3 with # 2 HMS prices at JPY41,500/mt delivered Tahara, JPY41,000/mt delivered Okayama, JPY40,500/mt delivered Kyushu, JPY41,500/mt delivered Utsunomiya and JPY39,500/mt delivered Takamatsu.
Traders raised offers for HS by $20-30/mt to $510-515/mt cfr China with bids at $480-500/mt cfr on Wednesday. Spot iron ore price for 62fe fell by $2/mt from the prior week to $176/mt cfr Qingdao on Monday due to pollution-related production restrictions but rose by $1.5/mt on Wednesday.
Few deals for Japanese HS heard at $490-495/mt cfr. South Korean HS in containers sold at $475/mt cfr China. The index for P&S 5ft (small bulk) China port settled at $494/mt cfr, up by $20/mt from the prior week.
Exporters raised offers for #2 HMS to JPY43,000/mt fob, up by JPY1,000/mt from the week prior with the index rising by JPY1,750/mt to JPY41,500/mt fas. On a fob basis, the index rose by JPY1,250/mt to JPY42,500/mt($397.6/mt) fob with deals heard at JPY42,500/mt fob this week. Offers for #2 HMS were at $450-460/mt cfr.
Bids for Japanese #1 busheling (Shindachi) rose by JPY2,000/mt to JPY47,000/mt fob from a week ago. The weekly index for the grade rose by JPY1,563/mt to JPY47,313/mt fob Japan, while on a fas basis the index rose by JPY1,500/mt to JPY45,500/mt fas. With Turkish mills raising scrap purchase volumes as well as prices, the index for HMS 1&2 (80:20) increased by $48/mt to $457.5/mt on March 1 from Feb 1. Thus, many traders are expecting a further rise in global ferrous scrap prices next week due to the tight supply of scrap and a rise in steel demand globally.
The weekly Davis Index for HS and shredded, Wednesday, rose by JPY1,000/mt to JPY45,750/mt fas, respectively. Limited trades heard as most mills were cautious of rising offers.
Offers for HMS 1&2 (50:50) rose by $20/mt to $465/mt cfr Vietnam this week. After Tokyo steel increased domestic scrap bids, the index for the grade rose by $19/mt to $460/mt cfr Haiphong.
In Taiwan, the index for Japanese HMS 1&2 (50:50) rose by $22/mt to $455/mt cfr. Offers rose $25/mt to $460/mt cfr after few deals at $435/mt cfr heard last week.
Buyers from Vietnam, South Korea, and Taiwan are buying cautiously amid elevated offer levels and closely watching Chinese and Turkish buying to gauge the price direction.