Domestic ferrous scrap prices in most Asian markets dropped this week following global cues. Steel mills shied away from booking scrap as they expect a further drop in prices. Demand for scrap slowed this week after strong demand last week.
Japan
Japan’s domestic ferrous scrap prices lost steam and remained largely flat on weak demand. Tokyo Steel and other EAF-based steelmakers have kept their bids unchanged since June 17.
Tokyo Steel’s purchase prices for #2 HMS was JPY26,500/mt ($247/mt) delivered Utsunomiya plant in Kanto region, JPY25,000/mt delivered Kyushu and JPY24,500/mt delivered Okayama plant. Bids for busheling for deliveries to Tahara and Utsunomiya plants are at JPY28,000/mt and JPY28,500/mt del plant, respectively.
Japanese exporters said prices are likely to drop in the coming days. In the export market, #2 HMS was offered at JPY24,500-25,000/mt fob Japan on Tuesday to South Korea, Vietnam and Taiwanese mills.
South Korea
South Korean domestic ferrous scrap prices continued to rise as mills replenished scrap inventories. Major steelmakers like Hyundai and Dongkuk Steel have resumed bulk purchases from the US, Japan and Russia. Dongkuk, SeAH, YK, Daehan and Hyundai Steel lowered domestic scrap purchase prices by KRW10,000-15,000/mt del plant this week.
The Davis Index for domestic Heavy A settled at KRW320,000/mt ($264/mt) del Incheon, down by KRW10,000/mt, from the prior Tuesday. The Davis Index for Heavy A settled at KRW300,000/mt del Pohang, down by KRW15,000/mt from the prior Tuesday. The weekly Davis Index for domestic Light A settled at KRW275,000/mt delivered Pohang plant, down by KRW15,000/mt.
Taiwan
Domestic ferrous scrap prices in the country remained flat this week. Scrap demand picked up on the back of increased production of billets, which are in demand in Southeast Asian region.
The Davis Index for domestic HMS 1&2 (80:20) in south Taiwan settled flat at NTD7,500/mt ($253/mt) del plant from the prior Tuesday. The weekly index for HMS 1&2 (80:20) in North Taiwan settled at NTD7,750/mt del plant, unchanged.
In South Taiwan, Feng Hsin Steel held domestic ferrous scrap purchase prices flat for HMS 1&2 (80:20) at NTD7,400/mt delivered Taichung plant from the prior Tuesday. The steelmaker’s base offers for rebar were unchanged at NTD14,300-14,500/mt ex-plant. A few mills offered discounts on listed prices in order to boost demand.
In seaborne trades, US-origin containerised HMS 1&2 (80:20) traded at $245-250/mt cfr Taiwan, down $5/mt last week. Bids for South America and Central American HMS 1&2 (80:20) were heard at $240/mt cfr Taiwan on Tuesday, down $10/mt from the prior week.
Vietnam
The Davis Index for HMS 1&2 (80:20) settled at VND6,000,000/mt ($258/mt) delivered South Vietnam inclusive of taxes, down VND100,000/mt from the prior week.
China
In China, Shagang Steel held bids for domestic #2 HMS (6-10mm thickness) Tuesday at CNY2,580/mt del Jiangsu plant inclusive of the 13pc VAT. The weekly Davis Index for domestic HMS 1&2 (80:20) settled at CNY2,585/mt ($365.7/mt) inclusive of 13pc vat delivered to mill in eastern China, down by CNY15/mt from the prior week. Rains in the northern region and weak semi-finished steel demand pulled down prices.
In the domestic market, prices for billet were at CNY3,330/mt ex-Tangshan mill on Tuesday, up by CNY30/mt from late last week. Rebar and HRC export prices from China, however, dropped on the back of weak demand in the overseas market.
Thailand
The weekly Davis Index for domestic HMS 1&2 (80:20) settled flat at THB8,500/mt ($274/mt) delivered Rayong inclusive of taxes. Southeast Asian billet prices dropped in recent deals reported at around $400-410/mt cfr Southeast Asia amid limited availability of ferrous scrap in the domestic market.
Malaysia
The weekly Davis Indexes for domestic HMS 1&2 (80:20) settled unchanged at MYR960/mt ($225/mt) delivered western mills, down MYR15/mt and MYR992/mt delivered eastern mills, down MYR18/mt inclusive of taxes. Domestic ferrous scrap prices dropped following lowered imported scrap prices. In seaborne market, imported HMS 1&2 (80:20) scrap traded at $240-245/mt cfr Malaysia from South and Central America.
($1= JPY107.08; NTD29.55; CNY7.07; THB31.01; MYR4.28; VND23,265.5; KRW1,208.4)