Domestic ferrous scrap prices rose in most Asian markets this week. Suppliers raised their offers following strengthening imported ferrous scrap prices. Demand continued to pick up in most Southeast Asian countries on resumption in operations with governments easing restrictions.
Japan’s domestic ferrous scrap prices rose on the back of steelmakers resuming operations. The government has also eased some restrictive measures amid a state of emergency.
Tokyo Steel raised its bids for domestic scrap delivered to Tahara by JPY1,000/mt. Bids for scrap delivered to other works increased by JPY500/mt. Bids for #2 HMS were at JPY20,000/mt ($185/mt) delivered Utsunomiya plant in Kanto region and JPY19,00/mt delivered Kyushu and Okayama plants. Bids for busheling at Tahara and Utsunomiya were at JPY22,500/mt and JPY22,000/mt fob Japan, respectively.
In the export market, Japanese #2 HMS traded at JPY23,500/mt fob Japan late last week.
Domestic ferrous scrap prices in South Korea rose by KRW2,500-5,000/mt from the prior week. Major mills announced special purchases on falling inventories. Manufactures and automakers are expecting demand to improve as restrictions in many Southeast buyer markets easing.
The weekly Davis Index for domestic Heavy A settled at KRW295,000/mt ($237/mt) del Incheon, up by KRW5,000/mt. The Davis Index for Heavy A settled at KRW282,500/ mt del Pohang, up by KRW2,500/mt from the prior Tuesday. The weekly Davis Index for domestic Light A settled at KRW252,500/mt delivered Pohang plant, up by KRW2,500/mt.
Taiwan’s domestic ferrous scrap prices remained flat from the prior week. Limited trades for domestic scrap were reported amid ongoing heavy rains. Finished steel demand also remained subdued. The weekly Davis Index for domestic HMS 1&2 (80:20) in south Taiwan settled unchanged at NT$6,900/mt ($231/mt) del plant.
The weekly index for HMS 1&2 (80:20) in North Taiwan settled at NT$7,300/mt del plant, also flat.
In South Taiwan, Feng Hsin Steel held domestic ferrous scrap purchase prices for HMS 1&2 (80:20) flat at NT$6,800/mt delivered Taichung plant. The steelmaker’s rebar base offers were in the range of NT$13,800-14,000/mt.
In seaborne trades, US-origin containerised HMS 1&2 (80:20) traded in the range $228-230/mt cfr Taiwan, unchanged from late last week.
The Davis Index for HMS 1&2 (80:20) settled at VND6,000,000/mt ($257/mt) delivered South Vietnam inclusive of taxes, unchanged from the prior week. Vietnamese steel mills continued to book small bulk cargoes from Japan. But trades were thin amid increased offers by suppliers.
A rise in billet purchases from Southeast Asian countries and increased HRC export prices in China are likely to push Vietnamese mills to offer more cargoes in the coming days. Formosa Steel increased its July shipments prices for flat-rolled steel by $16/mt from the prior month.
Chinese domestic ferrous scrap prices rose further following rising demand. Shagang Steel headquartered in Zhangjiagang, east China’s Jiangsu province, increased bids for domestic #2 HMS (6-10mm thickness) by CNY120/mt on Tuesday to CNY2,640/mt del Jiangsu plant inclusive of the 13pc VAT. Ferrous scrap prices in China rose due to supply crunch and supportive profit margins of EAF steelmakers in the country.
The weekly Davis Index for domestic HMS 1&2 (80:20) settled at CNY2,650/mt ($372/mt), up by CNY50/mt inclusive of 13pc vat delivered to mill in eastern China. In the domestic market, the prices for billet dropped CNY10/mt on Tuesday to CNY3,260/mt ex-Tangshan mill.
The Iron and Steel Industry association under the Federation of Thai Industries (FTI) expressed concerns over cheap Chinese steel imports being dumped in Thailand. With the likelihood of a demand slowdown in their domestic market, Chinese producers could dump excess steel in other markets, mainly Thailand. The weekly Davis Index for domestic HMS 1&2 (80:20) settled at THB7800/mt ($245/mt) delivered Rayong inclusive of taxes, up by THB50/mt.
The weekly Davis Index for domestic HMS 1&2 (80:20) settled at MYR920/mt ($211/mt) delivered western mills, up by MYR20/mt and the index for HMS 1&2 (80:20) delivered eastern mills settled at MYR960/mt inclusive of taxes, up by $25/mt from the prior week.
($1= JPY107.67; TWD29.96; CNY7.13; THB31.89; MYR4.36; VND23,313.5; KRW1,232.49)