Domestic ferrous scrap prices in most Asian markets, barring Japan were flat this week. Japanese domestic scrap prices rose on the back of increased demand and tightened supply.
Japan
Japan’s domestic ferrous scrap prices were on an uptrend as bookings by steelmakers increased. Rising iron ore prices encouraged mills using blast furnaces to opt for ferrous scrap. With the social distancing restrictions easing, trades are likely to pick up. Economic stimulus offered by the government could also aid the manufacturing sector.
Tokyo Steel raised its bids for domestic scrap delivered to Tahara and Kyushu by JPY1,000/mt effective June 02. Bids for scrap delivered to other works increased by JPY500/mt. Bids for #2 HMS were at JPY21,000/mt ($194/mt) delivered Utsunomiya plant in Kanto region, JPY20,500/mt delivered Kyushu and JPY20,000/mt delivered Okayama plant. Bids for busheling at Tahara and Utsunomiya plants were at JPY24,500/mt and JPY23,000/mt fob Japan, respectively.
In the export market, Japanese #2 HMS was offered at JPY24,000-24,500/mt fob Japan, up by JPY1,000/mt from the prior week.
South Korea
Domestic ferrous scrap prices in South Korea remained flat from the prior week. Major mills purchased limited quantities only to fill up their falling inventories. Production has also picked up pace as buyers from China and other ASEAN countries increasing bids for finished steel prices.
The weekly Davis Index for domestic Heavy A settled unchanged at KRW295,000/mt ($237/mt) del Incheon. The Davis Index for Heavy A settled at KRW282,500/ mt del Pohang, unchanged from the prior Tuesday. The weekly Davis Index for domestic Light A settled at KRW252,500/mt delivered Pohang plant, also flat.
Taiwan
Taiwan’s domestic ferrous scrap prices remained flat for a second successive week. There were limited domestic scrap trades reported amid ongoing heavy rains. Finished steel demand also remained slow with prices majorly flat. 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. A few mills in the Northern region have raised offers following increased global scrap prices.
In seaborne trades, US-origin containerised HMS 1&2 (80:20) traded in the range $228-230/mt cfr Taiwan. Offers then rose to $235-240/mt cfr Taiwan. With prices of Japanese small bulk rising, buyers increased enquiries for scrap from the US.
Vietnam
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. Trades for domestic scrap picked up as imported scrap prices moved up. Vietnamese buyers also slowed down trades for Japanese ferrous scrap, prices for which have increased.
China
Shagang Steel headquartered in Zhangjiagang, east China’s Jiangsu province, decreased bids for domestic #2 HMS (6-10mm thickness) by CNY30/mt on Tuesday to CNY2,530/mt del Jiangsu plant inclusive of the 13pc VAT. The weekly Davis Index for domestic HMS 1&2 (80:20) settled at CNY2,600/mt ($366/mt), down by CNY50/mt inclusive of 13pc vat delivered to mill in eastern China. In the domestic market, prices for billet rose by CNY40-50/mt on Tuesday to CNY3,310/mt ex-Tangshan mill from the prior week. Billet prices increased following rising iron ore import prices and higher steel futures
Thailand
The weekly Davis Index for domestic HMS 1&2 (80:20) settled at THB7,800/mt ($245/mt) delivered Rayong inclusive of taxes, unchanged from the prior week.
Malaysia
The weekly Davis Index for domestic HMS 1&2 (80:20) settled at MYR930/mt ($217/mt) delivered western mills, up by MYR10/mt and the index for HMS 1&2 (80:20) delivered eastern mills settled at MYR970/mt inclusive of taxes, up by $10/mt from the prior week.
($1= JPY107.67; TWD29.96; CNY7.13; THB31.89; MYR4.36; VND23,313.5; KRW1,232.49)