Ferrous scrap domestic and export prices in Japan trended up this week. Tokyo Steel raised domestic scrap prices on Tuesday by JPY500/mt ($4.8/mt), a fifth price hike in November.
Average bids at the monthly Kansai tender on Nov 16 also increased and a deal for 5200mt scrap was heard at JPY30,670/mt fas.
Tokyo steel raised finished steel prices by JPY2000/mt, which is expected to push ferrous scrap prices further up in Japan.
Increased buying in Turkey coupled with bullish offers have led market participants to expect a further rise in global ferrous scrap prices. In Turkey, the index for HMS 1&2 (80:20) settled at $325/mt cfr, up by $20/mt from the week prior.
The weekly Davis Index for #1 busheling rose by JPY250/mt to settle at JPY33,250/mt ($320/mt) fas amid limited deals. In the export market, the weekly index for #1 busheling (Shindachi) rose by JPY625/mt to JPY34,500/mt fob Japan. South Korean mill, Hyundai raised bids for Japanese scrap by JPY2000/mt from the week prior. Hyundai preferred higher grades with bids for HS at JPY34,000/mt fob, shredded at JPY34,500/mt fob, and busheling(shindachi) at JPY34,500/mt fob Japan.
In the Kanto region, the Davis Index for #2 HMS settled at JPY29,250/mt($281.6/mt) fas port, up by JPY250/mt, with deals at JPY29,000-29,500/mt fas. On a fob basis, The index for the same grade rose by JPY500/mt to JPY30,500/mt fob Japan.
A Korean mill was heard to have bought 40,000 mt of #2 HMS at JPY30,500/mt fob this week. Traders expect Japanese export prices to increase further amid better demand and higher average bids at the Kanto and Kansai tenders.
The weekly Davis Index for HS and shredded grade rose by JPY1,000/mt and JPY500/mt to JPY33,000/mt fas and JPY33,500/mt fas, respectively.
Yards offered Japanese HMS 1&2 (50:50), Wednesday, at $325-330/mt cfr Taiwan, up by $10/mt from the prior week. The index for the grade rose by $5/mt to settle at $324/mt cfr Taiwan. In Vietnam, the index for Japanese HMS 1&2 (50:50) increased by $6/mt to settle at $334/mt cfr, with no trades heard. Offers for the grade rose to $340/mt cfr Vietnam on Wednesday, with low to no trades. In the bulk market, two unconfirmed deals were heard for HMS 1&2 (80:20) of US-origin at $340-341/mt cfr Vietnam this week, up by $10/mt cfr from the prior deal.
Traders are optimistic of a recovery in demand as steelmakers are likely to ramp-up production in most Asian countries amid a gradual rise in steel demand in their domestic markets.