Southeast Asian market prices are dropping amid a surge in COVID-19 cases. The price gap between HMS and shredded/P &5 ft expands.
Taiwan’s imported ferrous scrap market continues to struggle with slow demand. The weekly Davis Index for containerized #1 HMS dropped $8/mt to settle at $458/mt whereas the index for #1 busheling dropped by $4/mt to $488/mt cfr Taiwan.
The index for shredded and P&S 5ft dropped by $5/mt to $473/mt and $480/mt cfr Taiwan, respectively.
The weekly index for HMS 1&2 (80:20) settled at $450/mt cfr Taiwan port, down by $7/mt. Offers for the grade heard at $460/mt.
A deal for 2,000-3,000mt HMS 1&2 (80:20) heard at $450/mt.
The growing outbreak of COVID-19 led the Vietnamese government to impose a strict two-week lockdown in the country’s capital and commercial hub Ho Chi Minh city from July 18.
The weekly Davis index for containerized #1 HMS, Thursday, dropped by $10/mt to settle at $467/mt cfr Vietnam. The weekly index for shredded dropped by $6/mt to $482/mt cfr Vietnam, while the index for P&S 5ft dropped by $6/mt to $489/mt cfr Vietnam.
The weekly index for #1 bushelling dropped by $5/mt to $500/mt cfr Vietnam port.
The weekly Davis index of HMS 1&2 (80:20) settled at $457/mt cfr Vietnam, down by $10/mt from the prior week.
Billet offers for August shipment range from $685/mt-$$770/mt.
Vietnamese steelmaker Formosa Ha Tinh Steel (FHS) has cut its domestic sale prices by $60/mt for the September and remaining August shipments.
The weekly Davis index for P&S 5ft fell by $2/mt to $508/mt cfr Indonesia port. Bids for P&S 5ft at $500-505/mt cfr Indonesia port.
The weekly Davis Index for shredded dropped by $3/mt to settle at $502/mt while the index dropped by $2/mt to $520/mt cfr Indonesia port for #1 busheling.
Indonesian buyers are enquiring for P&S 5ft, but offers are high at $520/mt.
Much of the ferrous scrap trading in Indonesia is halted due to the extension of lockdown until July 25.
The Indonesian government told the US embassy, on Friday, the country will hold its impurities threshold for imported paper and plastic scrap at 2pc.
Tokyo Steel reduced its ferrous scrap purchase prices by JPY500-JPY1,000/mt, depending on the grade, for deliveries to four of its five works effective July 20. Bids at the Utsunomiya plant have been kept unchanged. A rise in COVID-19 cases has impacted market sentiment.
After the revision, bids for #2 HMS at JPY50,000/mt ($455.63/mt) del Tahara, down by JPY1,000/mt ($9.11/mt). While bids for the grade are at JPY50,500/mt ($460.19/mt) del Okayama, JPY49,000/mt ($446.52/mt) del Kyushu, and JPY49,000 ($446.52/mt) del Takamatsu, down by JPY500/mt ($4.56/mt).
($1= JPY110.25, TWD 28.01, VND23,012, IDR14,473)