The weekly index for #2 HMS, Wednesday, dropped by JPY3,500/mt to JPY48,500/mt ($445.36/mt) fob Japan and JPY47,500/mt ($436.22/mt) fas Japan.
Tokyo Steel kept ferrous scrap purchase bids unchanged this week amid a fall in global steel prices and softening demand.
The weekly index for P&S 5ft (small bulk) China port settled at $550/mt cfr, down by $15/mt on lower offers. Buyers expectations for small bulk cargoes of P&S dropped to $540-545/mt cfr China on Wednesday. In the Chinese market, domestic scrap fell by CNY600/mt as Shagang Steel cut prices for the eighth time since May 18.
In the small bulk market, Japanese #1 busheling (Shindachi) offers were above JPY53,000-54,000/mt fob. The weekly index for the grade dipped by JPY4,000/mt to JPY53,000/mt fob Japan. On a fas basis, the index rose JPY4,750/mt to JPY51,000/mt fas Japan.
The weekly Davis Indexes for shredded and HS, Wednesday, dropped by JPY3,000/mt to JPY51,500/mt, and JPY3,500 to JPY51,500/mt fas Japan, respectively, amid limited deals.
Offers for Japanese HMS 1&2 (50:50) at 510-515/mt cfr Vietnam, with the index for the grade settling at $500/mt cfr Haiphong, down by $8/mt.
The index for Japanese HMS 1&2 (50:50), Wednesday, dropped by $10/mt to $483/mt cfr Taiwan. Most offers fell to $485-490/mt cfr against bids of $470-475/mt cfr Taiwan from last week.
The weekly Davis Index for containerized HMS 1&2 (80:20), Wednesday, settled at $455/mt cfr South Korea, down by $20/mt. Mills were unwilling to accept prices above $450-460/mt cfr South Korea for containerized HMS 1&2 (80:20) amid easing domestic supply.
The weekly Davis index for P&S 5ft, Wednesday, dipped $20/mt to $480/mt cfr South Korea, while the index for #1 HMS and shredded dropped by $20/mt and $5.mt to $465/mt, and $472/mt cfr South Korea, respectively.
South Korean mills continued to stay away from bulk purchases from Russia, Japan, and the US West Coast this week.
Offers for #2 HMS dipped JPY3,500/mt to JPY47,500/mt fas from the prior week.
Imported ferrous scrap offers took a dip in Taiwan as Turkish bulk prices remained flat with offers for US-origin material at $513/mt. Freight rates and softened steel demand also had a role in reducing the prices.
The weekly Davis Index for containerized US-origin HMS 1&2 (80:20), Wednesday, settled at $459/mt cfr Taiwan, down by $20/mt. On Wednesday, most offers were in the range of $460-475/mt cfr Taiwan with deals at $476-480/mt cfr Taiwan.
With the Taiwanese prices going down, South Korean mills decided to stay away from booking imported containers. In the coming days, the appetite for ferrous scrap imports could slow down for a while with the sharp fall in iron ore, HRC, rebar, and billet prices in almost all Asian countries, led by the Chinese government’s price intervention policy. Meanwhile, daily average crude steel production by key producers in China dipped in mid-May.
($1=JPY108.96, TWD27.80, KRW1117.06)